We have a big problem. Local Governments cannot have enough funding when the greedy politicians keep pressing Government for the so-called extending the services to the people. These in many cases just want services extended near to their stomachs. In modern age technology, it is irrational to keep subdividing districts which can easily be reached given the existing means of communication and transport.
William Kituuka Kiwanuka
LOCAL GOVERNMENT FUNDING NOT ENOUGH
By JOSEPH MITI
Posted Thursday, November 24 2011 at 00:00
Donors have expressed concern over the continued reduction of funds allocated to local governments, saying the move reduces the scope of services provided by to the grassroots.
Mr Klaus Dieter Duxmann, the German Ambassador to Uganda, said development partners are troubled by the declining share of GDP allocated to local government, which dropped to a mere 3.5 per cent in 2011/12 from 4.5 in the 2010/11 budget.
“With high inflation (30.5 per cent) continuing to erode the real value of public expenditure, the continued reduced allocation to local governments is a concern,” Mr Duxmann said.
He was delivering a statement on behalf of six donor countries at the signing of a memorandum of understanding with the government for supporting the second Financial Management and Accountability Programme July 2011 to July 2016, at the Finance ministry.
The medium term plans under the strategy and MoU for a period of three years ending 2014, will require approximately $60 million (about shs15.6b). Donors through a Multi-Donor Basket Fund will contribute 62 per cent, while the World Bank and government will pay 20 per cent and 18 per cent respectively.
The contributors to the Basket Fund include Sweden, the Department for International Development- UK, Norway, Ireland, Germany and European Union.
The donors, however, welcomed the swift action that was taken by government over the mismanagement of the procurement of bicycles by the Local Government ministry.
Finance Minister Maria Kiwanuka, who represented the government, said the programme will strengthen public finance management at all levels of government to ensure effective and efficient use of public resources as a basis for service delivery.
She said the strategy was prepared as part of the governance and economic management pillars of the National Development Plan aimed at improving service delivery in the public sector.
Graduated Tax used to be the main source of revenue for local governments but was abolished in 2005.