Uganda Local Government Finance Commission pledges to increase revenue collections

The Uganda Local Government Finance Commission (LGFC) has rebranded, with its leading pledging to increase local revenue collections to Shs1 trillion by the 2025/26 financial year.

Speaking at the rebranding function on Friday, Mr Isaac Musumba, the commission chairman, said the rebranding function is not just a mere change of logo but a strategic move to enhance performance and visibility.

He said the commission will target untapped revenue sources to increase revenue from the current 300 billion shillings to the intended 1 trillion shillings.

“We have realized that there is still a lot of money that can be collected from royalties, and we are coming after it,” he said.

 Musumba stated that the commission will leverage the automated local revenue mobilization structure set up by the previous commission leadership and government, which has proven to be more efficient and effective wherever it has been instituted.

According to Musumba, the rebranding is a statement of the commission’s intentions and a symbol of its new outlook for the future, responding to evolving times. To him, the commission is becoming more focused and accountable for its deliverables, adding value to its clients the local governments. He added that through the rebranding process, the commission will surpass all expectations with timely responses and improved revenue performance.

 “We are going to work with whoever we are supposed to work with to ensure we maximize the collection of these arrears. MDAs are among those defaulting, and we shall stop nowhere until we get that money,” he asserted.

Businge Victoria, the state minister for local governments who represented the cabinet minister Raphael Magezi, commended the commission’s rebranding move, calling it a rediscovery and a recommitment.

“We are happy that they have discovered that there was a gap between themselves and past performance. It is good that they have also recommitted to ensure there is fresh effort and thinking, planning, as well as more vigorous mandate implementation.”

The minister also rallied local government leaders, including Chief Administrative Officers (CAOs) and town clerks, to ensure optimal and efficient utilization of their monetary allocations, as well as maximum local revenue collection in their jurisdictions as a major enhancement to government allocation. “We have hope that now that they have discovered the gaps and are ready to fill them, things will improve significantly.”

LGFC is a semi-independent statutory body mandated to ensure that local governments have the financial resources to serve their communities effectively. It is tasked with managing and advising on local government finances, ensuring fair and transparent allocation of financial resources to local governments, as well as overseeing revenue distribution from national governments and advising on policies that impact local financial management.

The commission engages in activities like revenue sharing, policy advice, audits and oversight, and research and development. The commission is required to submit periodic reports to Parliament or other central government bodies, promoting accountability and transparency in its operations.

The LGFC is crucial for ensuring fairness and equity in resource distribution. It helps address disparities between rich and poor regions, allowing every community to benefit from national resources. By enhancing financial management and reducing corruption risks, it fosters trust and boosts local development.