Kampala, Uganda | THE INDEPENDENT | The Ministry of Local Government has opposed the proposal by the Ministry of Finance directing newly created administrative units to use their locally generated revenue for operations.
The government created over 360 sub-counties and 350 town councils across the country but many have remained non-functional due to a lack of funding.
In the budget circular released by Finance Minister Matia Kasaija, he directed that the ministry of local government must operationalize the new units by using their local revenue sources.
However, the State Minister for Local Government Jennifer Namuyangu says that the directive is unrealistic because some of the new units do not have any sources for local revenue.
She says they plan to discuss the matter with the Ministry of Finance.
Last week, the Local Government Minister Raphael Magyezi said the new sub-counties and town councils will get funding for their operations in the 2021/2022 financial year.
However, the minister was not clear on the source and amount of money that will be provided to the units.
John Michael Okurut, the Pallisa LC V chairperson says they are considering petitioning both the local government and the finance ministry over the failure to operationalize the new units.
He says parliament should not have approved the creation of new administration units without a certificate of financial implication.
Godfrey Bigogo Thembo, the Kasese LC V chairperson says lack of proper planning by relevant ministries is stifling the works of local governments.
On Monday, Magyezi said that the government had indefinitely suspended the creation of new administrative structures across the country.
He argued that the new structures have widened the funding gaps of lower local governments and the government is currently looking for money to fund the recently created districts and cities.