The government disseminated a new constitution in 1995 with the
provision on decentralization of Article 176 2 (b) that acted shortly
before the rebirth of the local government act in 1997. Devolution as
a form of decentralization transferred both political and
administrative powers from the center to lower local councils
specially to handle the responsibility of service delivery.
According to Hon. Raphael Magyezi, the Chairman Parliamentary
Committee on Local Government, devolution allows local governments to
plan for their people and decide on what is best for the needs of the
people in their area but their autonomy has been undermined by the
inadequate local revenue to finance service delivery and meet their
budget expectations as demanded by their people.
Magyezi who spoke to our reporter from Kampala says that much
as decentralization has increased the capacity of local governments to
plan and budget for their local development, about 9% of the budget is
still funded by the central government as grants. He says the grants
are mostly conditional which restrict the money to particular uses and
may not address the needs of the people in a district or an area.
Amid delays to release the funds and return of unexpended funds to the
treasury for various reasons, local governments continue to struggle
with about 5% of local revenue generated to meet the huge demands of
the local people.
Magyezi suggests that there is need to devolve tax sources to enhance
the tax base of local governments so that they are able to finance a
bigger percentage of their budget to avoid dependence on money that
comes from the central government with strings attached.
He says as long as tax sources like transit tax, tourism, among others
continue to go to the central government, the local government
autonomy will remain a paper work since finance is a major area for
decisions in local government operations and administration.
In Gulu district, the Chairman LCV, Ojara Martin Mapenduzi says that
unless money is released from the central government into the district
account, most times their activities at the district is affected which
affects service delivery to the local people. He adds that the local
government revenue base is still narrow at the district level which is
inadequate to meet the huge service demand of the people.
In 2014, local government officials under their umbrella organisation,
Uganda Local Government Association (ULGA), asked the central
government to cede more powers to them Under decentralization. They
claimed that since decisions on their operations and financing are
made at the local government ministry, they are left with little power
especially in relation to raising revenue.
The commissioner for Local Councils Development however says the
councils just need to invoke the powers they already have to execute
their plans and also seek alternative revenue sources.