LGA have collected only 55 per cent of targeted revenue

Summary

  • Local Government Authorities through its councils collected 55 per cent of its Sh735.58 billion target until February, with the government saying despite decrease in commercial and food produce levy from five to three per cent, the revenue collection trend is promising.

Dodoma.  Local Government Authorities through its councils collected 55 per cent of its Sh735.58 billion target until February.

Deputy minister of State in the President's Office (Regional Administration and Local Government) Mwita Waitara said during the period, councils collected some Sh401 billion against the set target for the current financial year.

He was speaking today, April 11 during the question and answer sessio in Parliament.

Mr Watara was responding to a question by Msimbo MP Richard Mbogo (CCM) who sought to know whether the government was ready to help district councils, including Nsimbo.

"Yes, the amendment of the Local Government Finance Act Cap 290 has brought  relief to farmers but still affected revenue collection by councils with small-scale farmers," said Mr Mbogo.

However, on a positive note, the amendment led to a decrease in commercial and food produce levy from five per cent to three per cent, a move which is considered a relief to farmers.

"Statistics for revenue collection in councils are promising despite the decrease in produce levy," said Mr Waitara.

"This is because Local Government Authorities are doing all in their power to widen the revenue base."

In 2017/18 revenue collection by councils stood at Sh553.39 billion, which was 81 per cent of the targeted Sh687 billion.

In the next financial year, which kicks off on July 1, councils are set to collect some Sh765 billion.

Speaking earlier, Mr Mbogo said with decrease in revenue collection in Nsimbo district council has made it difficult to address challenges related to social services like education and health.

Responding, Mr Waitara said the government was trying its best to improve social services.

He said until March this year the government had disbursed some Sh416 million for free education in Nsimbo district council.

Under the period of reference, the government had also dished out some Sh411 million for purchasing of medicines and medical facilities