Finance Commission sets Ambitious shs 1 Trillion revenue target for Local Governments.
By Brian Atuhura
The government has set an ambitious target of raising local revenue collections by Local Governments across the country to shs one trillion by the next financial year.
This was revealed by the Vice Chairperson of the Local Government Finance Commission (LGFC), Mariam Nalubega, during a Stakeholders' engagement on wildlife royalties held yesterday at the Masindi District Headquarters.
Nalubega said the target is achievable, largely due to the successful rollout of the Integrated Revenue Administration System (IRAS), which has significantly boosted revenue collection in districts already using it.
According to Nalubega, when the current Commission assumed office in 2023,local revenue collections stood at UGX 291 billion.With the introduction and adoption of IRAS, collections have since grown to more than UGX 400 billion in 2025.
She explained that IRAS was deliberately introduced to streamline revenue collection systems and promote transparency, efficiency, collaboration and accountability.
Nalubega emphasized the need for Local Governments to broaden their revenue sources by tapping into natural endowments including expanding opportunities in game parks.
"The Commission is deliberate and intentional about growing Local Governments into Sustainable financing autonomy by building their capacity and potential",She said.
Nalubega, stressed that Central Government grants alone can not sustain Local Government operations since many entities are competing for the same funds.
She however, expressed disappointment that Uganda Wildlife Authority (UWA) officials did not attend the meeting, noting that their presence was crucial for addressing Stakeholders' concerns on wildlife royalties.
Representing the District Chairperson,the District Secretary for Finance, Pamela Nyakato,welcomed the Local Government Finance Commission delegation and applauded the introduction of IRAS noting that Masindi's revenue has now surpassed UGX 1 billion.
During a presentation on Wildlife royalties, Johnson Gumisiriza,the Principal Financial Analyst at Local Government Finance Commission, highlighted that districts bordering major national parks such as Murchison Falls, Queen Elizabeth, Kidepo and Mgahinga have high revenue potential.However,this potential is undermined by weak revenue estimation methods, limited follow up on UWA transfers and inadequate data on tourism activities.
Reacting to the presentation, Masindi District Chairperson, Cosmas Byaruhanga inquired whether Masindi qualifies to benefit from royalties from oil and gas exploration and whether the district can tap into renewable energy generated by Kinyara Sugar Works.
In response,Fred Andama, Director of Revenue and Research at Local Government Finance Commission, clarified that Masindi can only benefit from the 6% royalty share from oil and gas if it is directly affected as a frontline district.Regarding renewable energy from Kinyara Sugar Works,Andama said the district leadership must make deliberate follow ups to secure the royalty.
Presenting Masindi's report on UWA revenue sharing funds,the Senior Community Development Officer (SCDO),Vincent Businge, revealed that the district has received a total of UGX 989,201,561 over the last three financial years.
In 2019/2020 the district received UGX 407,757,611,UGX 283,465,185 in 2021/2022 and UGX 297,978,765 in 2022/2023.
Businge noted that,the funds have supported livelihood projects that improved household incomes alongside infrastructure and community development initiatives, including measures to mitigate human wildlife conflicts.
Closing the engagement, the Assistant Resident District Commissioner (ARDC), Patrick Asiimwe, expressed concern over persistent political divisions in the district which he said are undermining implementation of government programs.He emphasized the need for unity and constructive dialogue to strengthen revenue collection and drive development.

