The Fiscal Decentralization Division at the Ministry of Finance organized a meeting on Thursday, 29th February 2024, with mayors/chairpersons and chief administrators of local councils to discuss challenges regarding collecting home source revenue.

During the meeting, chairpersons/mayors and chief administrators highlighted several challenges in revenue collection at the council level. These challenges include staff capacity and motivation, lack of coordination and cooperation from stakeholders, Chiefdom authorities, other Ministries, Departments, and Agencies (MDAs), the legal framework, outdated cadastral systems, and political interference.

In his statement, Financial Secretary Matthew Dingie emphasized the significance of revenue collection for service delivery at the district level. He further noted that improved service delivery at the local level would positively impact the country’s overall economy.

The Financial Secretary assured local council authorities of the ministry’s support and the timely disbursement of devolved grants. Simultaneously, he admonished them to ensure they meet their respective 2024 revenue targets.

In a subtle tone, Matthew Dingie informed them that the Ministry of Finance would analyze the challenges raised and develop a strategy to support the local council revenue generation drive.

Continuing with the meeting, a presentation by the Fiscal Decentralization Division revealed that, despite most local councils reducing their targets from 2022 to 2023, many failed to reach their revenue targets for 2023. They collected a combined total of Nle67.4 million, falling short of the Nle110.2 million target.

Director of the Fiscal Decentralization Division, Adams Kargbo, stated that the government has undertaken several interventions to support local councils’ revenue.”