Mbarara District, located in Uganda, has decided to open new roadside markets to increase the amount of money it collects locally. The decision was made by the Mbarara District Council.
The council had planned to collect 1.6 billion shillings for the financial year 2023/24. However, by the end of the third quarter, only 760 million shillings had been collected.
David Muhwezi, who is the Chief Administrative Officer of Mbarara District, spoke during the presentation of the draft budget for the financial year 2024/25. He mentioned that various challenges, such as outbreaks of diseases like Foot and Mouth Disease, long periods of drought, and other illnesses affecting harvests, have disrupted the collection of local revenue.
Muhwezi also highlighted that the creation of Town Councils and giving them control over revenue collection had affected the revenue of the main district. He encouraged councilors to find potential areas where new markets, especially roadside ones, could be set up.
Julius Muganzi, the Chief Finance Officer of Mbarara District, shared that the finance department has suggested new ways to increase revenue for the financial year 2024/25. These ideas include charging for sale agreements of land transactions and renting out undeveloped land.
District Chairperson Didas Tabaro identified several challenges hindering revenue collection. These include insufficient space for some markets, incomplete market infrastructure, and few slaughter facilities despite being in an area known for cattle farming.
Tabaro mentioned that out of the 10 weekly markets previously owned by the district, six were now managed by newly established town councils.
Simon Twashaba, the Secretary for Finance and Administration, presented a draft budget of 30 billion shillings for the next financial year. He also projected that 1.9 billion shillings would be collected locally.
Twashaba urged councilors to review and approve the drafts in June to ensure efficient service delivery to the people.
