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Local revenue retention by central govt irks Lira City East mayor Ayoo

Lira | George Okello Ayoo, mayor of Lira City East Division, has urged Members of Parliament (MPs) to introduce legislation to prevent the central government from keeping a sizable portion of locally generated revenue.

Mayor Ayoo made the appeal during a press briefing at his office on March 5, 2025, emphasizing the importance of timely service delivery to local communities.

The mayor expressed his disappointment with the Ministry of Finance, Planning, and Economic Development, revealing that in February 2025, Lira City East Division collected a total of shs400 million in local revenue.

However, only shs76 million was returned to the division, significantly less than the anticipated shs200 million.

He argued that the entire shs400 million should have been transferred to the main Lira City account, with shs200 million going to the city council and the remaining shs200 million going to the division.

“This is not fair,” mayor Okello stated. “We need our MPs to intervene and ensure that service delivery reaches the local communities on time. I know these challenges are prevalent across all lower local governments in the country, but they can be resolved through the intervention of our Members of Parliament.”

Mayor Okello highlighted the financial performance of Lira City East Division, stating that the division collected more than shs2.1 billion in the previous fiscal year and that the goal for this fiscal year is to raise shs3 billion.

However, he cautioned that if the central government continues to retain a sizable portion of locally collected revenue, these targets may not be met.

“I don’t want our local community to blame their leaders because the biggest problem lies with the Ministry of Finance,” mayor Okello stated.

“I am appealing to the central government to devolve this power back to the lower local governments. This is one of the reasons I am contesting for a seat in Parliament—to address this issue that is crippling local governments.”

The Division leader emphasized that if the ability to manage local revenue is returned to lower local governments, division reservation budgets will be completed on time.

However, if the central government continues to control local revenue collection, these issues will persist.

Lira City East Division comprises 138 cells, 28 wards, and a population of 122,000. An additional 25 cells are set to be added in the new financial year, bringing the total to 163 cells.

The division covers an area of 196 square kilometers, compared to 92 square kilometers in Lira City West.

Mayor Okello hopes to replace Jimmy Akena Obote, the current Member of Parliament for Lira City East Division, in the upcoming elections.

His campaign focuses on addressing local governments’ financial challenges and ensuring that residents receive the services they deserve.


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