“A presentation done by the Fiscal Decentralization Division in the Ministry of Finance shows that even though most Local Councils reduced their target from 2022 to 2023, most of the Councils failed to reach their revenue targets for 2023 by collecting a combined total of sixty seven billion four hundred million old Leone (Nle67.4Bn) out of the one hundred and ten billion two hundred million new Leones (Nle110.2Bn) target,” the Director of Fiscal Decentralization Division, Adams Kargbo said at a one day engagement with Local Councils. They had a shortfall of forty two million eight Hundred Thousand new Leones (Nle42.8M).
He said the government has undertaken several interventions to support Local Councils’ revenue drive by preparing Memorandum of Understanding between Councils and Chiefdoms on revenue sharing and management, developing Revenue Mobilization Strategies for five Councils including Karene, Falaba, Kono, Pujehun and Bo District Councils and in the process to develop Revenue Mobilization Strategies for another five District Councils namely Moyamba, Kambia, Bonthe, Kailahun and Koinadugu.
He disclosed that they are supporting the development of an upgraded Property Tax System to be rolled out to all twenty two Local Councils, starting with City Councils, organize local revenue fora (regional) to discuss challenges and implementation arrangements for revenue collection and automated own source revenue management processes (billing, collection and reporting).
The Division organized the meeting with Mayors/Chairpersons and Chief Administrators to discuss challenges regarding collecting home source revenue in local councils.
The Chairpersons/Mayors and Chief Administrator highlighted several challenges regarding revenue collection at the council level, which includes staff capacity and motivation, lack of coordination and cooperation from stakeholders, Chiefdom on authorities and other Ministries, Departments and Agencies (MDAs), the legal framework, and outdated cadastral systems to political interference.
The Financial Secretary Matthew Dingie emphasized 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.
He assured the Councils of their support and timely disbursement of devolved grants while at the same time admonishing them to ensure they meet their respective 2024 revenue targets.