Ministry Of Finance Asked To Let Local Governments Spend Own Revenue

Members of Parliament are not satisfied with the Ministry of Finance, Planning and Economic Development. This is because the ministry failed to implement the House’s resolution to allow local governments to spend local revenue at the source.

The parliament passed a resolution in September 2021. This urged the government to reverse a directive requiring local governments to remit consolidated funds. While updating the house, Hon. Amos Lugoloobi said they are constrained to allow local governments collect and spend local revenues. He said this is mainly because of legal provisions.

“In order to implement the Preliminary resolution, Section 29 and, other sections of the Public Finance Management Act will have to be amended to specifically allow local governments not to remit local revenues,” Lugoloobi said.

However, though, it should be noted that there is no legal barrier deterring the Finance Minister from giving local governments a green light.

“Both the Constitution and the PFMA have authorized local governments to collect and use money. It is Government that is violating the law because there is no legal impediment,” Hon Asuman Basalirwa said.

The legislators urged the Finance Minister to table an amendment aimed at realigning the PFMA and Local Government Act.

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