UGANDA, Jinja | Real Muloodi News | Jinja City Council has proposed a reduction in its budget from USh59.8 billion in the current fiscal year (2023/2024) to USh54.9 billion for the upcoming fiscal year starting in June. This decision stems from difficulties in meeting revenue projections, particularly regarding property tax collection.
Twaha Waniala, the Secretary for Finance at Jinja City Council, highlighted various challenges contributing to the shortfall in revenue.
He cited issues such as the failure of property and hotel owners to maintain records of their visitors, making it challenging for the finance department to track taxable transactions effectively.
“Many hotels in Jinja City do not maintain visitor records, posing challenges in revenue tracking. I urge the government to enact laws mandating property owners to register visitors, similar to practices in other countries,” Waniala stated during the budget proposal presentation for the fiscal year 2024/2025 on March 22, 2024.
Additionally, Waniala pointed out a lack of proper revenue database records within Jinja City and inadequate resources for revenue mobilisation.
He highlighted the shortage of vehicles, with only one available for revenue collection activities.
As a result of the property tax collection challenges, several departments will experience budget cuts in the proposed fiscal year. For instance, allocations for roads and engineering will be reduced from USh17 billion to USh6.5 billion, while funding for natural resources will decrease from USh837.7 million to USh674.7 million.
Community-based services will see a reduction from USh557.3 million to USh545.6 million, internal audit from USh360.4 million to USh330.3 million, and health from USh8.6 billion to USh8.4 billion.
Conversely, Jinja City plans to prioritise funding for departments such as education, administration, and health by increasing their budgets.
The education budget will see an increase from USh9.5 billion to USh12.3 billion, while administration will rise from USh8.6 billion to USh12.4 billion.
Waniala attributed the budgetary challenges to various factors affecting Jinja City’s revenue expectations during the 2023/2024 fiscal year.
By the end of the second quarter in December 2023, the council had only managed to collect USh25.7 billion, representing an average performance of 43 per cent.
From the initial budget of USh59.8 billion, the council had anticipated collecting USh11 billion from local revenue sources.
However, by December 2023, only USh3 billion had been collected, indicating a significant revenue deficit.
Edward Lwanga, the Jinja City clerk, emphasised the importance of departmental heads and councillors reviewing and discussing the budget estimates for the fiscal year 2024/25 before finalisation, urging them to do so by May 31.
Jinja City Deputy Speaker Sirina Kyakuwaire Kamya, presiding over a recent council sitting, urged councillors to prioritise public demands over personal interests, emphasising the need for responsible governance and fiscal management.
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