{UAH} WE WERE RIGHT!

We were right all along. This is what we stated here on the forum and this is what we federalist have been saying all along that what we need is states big enough to self sustain. We need federal states not district stupid!

World Bank faults government on new districts

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Ms Racheal Sebudde (R) addresses CEOs in Kampala last Friday. Looking on are former Finance minister Maria Kiwanuka (L) and Dr George Njenga, the dean of Strathmore Business School Nairobi. PHOTO BY STEPHEN OTAGE  

By Stephen Otage

Posted  Monday, September 21  2015 at  01:00

IN SUMMARY

Wrong move. A World Bank senior economist says government was wrong to lift the suspension of creation of new districts.

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Kampala. The World Bank has faulted the Ugandan government for going against the suspension of creating more districts.
Ms Racheal Sebudde, a senior economist at the Bank, said it speaks volumes that government that borrows to fund its priorities, especially roads and railway, would create additional administrative units.

"[The] government suspended creation of new districts. But each time elections come close, we see them [districts] coming back yet Uganda has a weak economic base because of few revenue sources," Ms Sebudde said. 
She, was last Friday addressing CEO's forum on the outlook of the economy in regard to the National Development Plan II in Kampala. 
Ms Sebudde said with revenue collection currently standing at only 13 per cent of the GDP, it means government cannot finance its development projects while at the same time financing public administration.

Parliament at the beginning of September voted for the creation of more 23 districts. Uganda currently has 111 districts; but if one includes Kampala Capital City Authority, the number is 112.
Some observers say the creation of 23 more districts is meant to increase President Museveni vote catchment areas and shore up his party's numbers in Parliament.

But the President has in the past been critical of the establishment of more districts, arguing that they had not helped to improve service delivery as had been anticipated.
However, what made the government suspend creation of new districts was the brief that indicated the government would need at least Shs59 billion just to start one more district. Once a district is in place, the government would have to raise more money to pay salaries of the newly created class of bureaucrats.
Ideally, a district should only be established where the population and geography demand so; and the district should be able to raise its own revenue to run its affairs.

sotage@ug.nationmedia.com

Tolerance is a stage in civilisation!

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