The Fiscal Decentralisation Division at the Ministry of Finance organised the meeting on Thursday, 29th February 2024, with Mayors/Chairpersons and Chief Administrators of Local Councils to discuss challenges regarding collecting home source revenue in local councils. In the meeting, Chairpersons/Mayors and Chief Administrators highlighted several challenges regarding revenue collection at the council level.
These challenges range from staff capacity and motivation, lack of coordination and cooperation from stakeholders, chiefdom authorities and other Ministries, Departments and Agencies (MDAs), the legal framework, and outdated cadastral systems to political interference.
In his statement, Financial Secretary, Matthew Dingie, stated the importance of revenue collection to service delivery at the district level. He noted that service delivery at the local level will positively impact the country’s overall economy.
The FS further assured the local council authorities of the support of the Ministry and timely disbursement of devolved grants, while at the same time admonishing them to ensure they meet their respective 2024 revenue targets. Matthew Dingie informed them that the Ministry of Finance will analyse the issues raised as challenges, and develop a strategy to support the Local Council Revenue Generation drive.
A presentation done by the Fiscal Decentralisation Division shows that even though most Local Councils reduced their target from 2022 to 2023, most of the Council failed to reach their revenue targets for 2023 by collecting a combined total of Nle67.4 million out of the NLe110.2 million target.
Director of Fiscal Decentralisation Division, Adams Kargbo, stated that the government has undertaken several interventions to support Local Councils’ revenue drive by preparing MoUs between LCs and Chiefdoms on revenue sharing and management, developing Revenue Mobilization Strategies for five (5) district councils: Karene, Falaba, Kono, Pujehun and Bo, and in the process to develop Revenue Mobilization Strategies for another five (5) district councils – Moyamba, Kambia, Bonthe, Kailahun and Koinadugu.
He furthered that they are supporting the development of an upgraded Property Tax System to be rolled out to all Local Councils, starting with City Councils, organise Local revenue fora (regional) to discuss challenges and implementation arrangements for revenue collection, and automate their source revenue management processes (billing, collection and reporting).
