Local Revenue Collection and Its Effect on Service Delivery in Maracha District, By Aduma Yeero Justus.

📸: Aduma Yeero Justus, Courtesy Photo.

By Aduma Yeero Justus (Parliamentary Aspirant for Maracha East, 2026 - 2031).

The sound local revenue system for local governance is an essential precondition for the success of council service delivery. Low local revenue is observed as the relationship between the budgeted local revenue collections and the actual revenue collected.

For example, Maracha district Local council in 2021/2022 budgeted for 215,062,000 but realized 175,519,601/=. Thus, 39,544,399 was unrealized. In 2018/19, Maracha DLG had budgeted for 26,531,366,000 Ugandan Shillings, only and only 22,866,964,018 Ugandan Shillings was realized and this was underperformance of 3,664,401,982 Uganda Shillings. This can not grant effective service delivery in the areas as planned.

In 2023, the district directed contractors or tenderers for markets to pay 100% to the district, and the district then remits 65% to sub counties instead of sub counties remitting 35% to district after collecting 100%. This was due to due to poor revenue collection and high levels of defaulting.

As a promoter of better social service delivery in Maracha district, our district tax administrators should improve on the effectiveness of tax administrative costs, step up their efforts in monitoring its budget and this will reduce tax administration costs as well as costs to collect revenues thus making enough local revenue to improve on social service delivery. Improving revenue appropriation and accountability should also be ensured, and tax compliance among taxpayers should also be promoted, and this can be done by sensitizing and educating taxpayers by district tax professional or tax advisors.

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