KAMPALA – Finance Minister Matia Kasaija has announced that the government has halted the creation of new administrative centres around the country over lack of funds.
Uganda currently has 136 districts while many others are set to become operational come the next financial year. The districts come along with more sub-counties and town councils.
But Mr Kasaija says the government lacks funds to make them operational.
This was revealed at the local government regional budget consultative workshop for Financial Year 2020/2021 in Fort Portal Town, Kabarole District on September 19.
In a speech read by Mr John Muhirwoha, the commissioner for district administration in the Ministry of Finance, Mr. Kasaija said they have now decided to demand a certificate of financial implications before future creation of administrative units.
“Government has taken a decision that in future, creation of any new administrative units in government must have a certificate of financial implications to certify that government has the resources to finance these institutions,” he said.
The minister’s remarks come after Parliament approved the creation of 364 sub-counties, 352 town councils and 10 cities without set-up funds
While meeting MPs on the Parliamentary Public Accounts Committee on Local Governments in 2018, President Museveni said that he was against the creation of new districts because some of the people who have been asking for districts have been doing it for selfish reasons.
Critics argue that the creation of new districts is simply driving the cost of administration up as opposed to bringing services closer to the people.
“We are spending a lot of money on administration when youths are crying for more money…creation of districts can wait,” the President said.