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Mbarara, Uganda | THE INDEPENDENT | Mbarara District Council has passed a resolution to open new roadside markets in a bid to boots local revenue.
Mbarara district council had projected to collect 1.6 billion shillings for the 2023/24 financial year. However, by the end of the third quarter, only 760 million shillings had been collected.
Speaking at the presentation of the 2024/25 budget draft estimates, David Muhwezi, the Chief Administrative Officer of Mbarara District said that the collection of local revenue has been disrupted due to various challenges such as the outbreak of Foot and Mouth Disease, prolonged drought, and diseases that have affected the harvests.
He pointed out that the establishment of Town Councils and granting them autonomy over revenue collection had an impact on the revenue of the mother district.
He urged the district councilors to identify potential areas where new markets, especially roadside markets, could be established.
Julius Muganzi, the Chief Finance Officer of Mbarara District, said that the finance department has proposed new ideas to increase revenue in the Revenue and Expenditure Enhancement Plan for the financial year 2024/25. They include charging for sale agreements of land transactions, as well as renting out undeveloped land.
According to District Chairperson Didas Tabaro, several challenges are affecting revenue collection. These include inadequate gazette space for some markets, incomplete tenderers un-plotted and unfenced markets, the temporary nature of most businesses, and very few slaughter facilities in the area despite being in the cattle corridor, among others.
He said that out of the 10 weekly markets owned by the district previously, 6 were taken up by newly created town councils that have autonomy over revenue collected.
Simon Twashaba, the Secretary for Finance and Administration, presented a draft estimate of a 30 billion shillings budget along with a projected local revenue of 1.9 billion shillings to be collected in the next financial year.
He urged the councilors to review and ensure that the drafts are approved in June so that it can help deliver services to the people.
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