I have a hard time believing that President Yoweri Kaguta Museveni and the National Resistance Movement (NRM) will stop creating districts, sub-counties and whatever local government administrations in the Republic. They will never really cease doing so, because they constantly carved the Republic into tiny pieces. So, that every single Sub-County today can become a district in the near future. It should be a joke, but looking at history, than it isn’t far-fetched at all.
By seeing this one piece from the New Vision:
“In 1986 when NRM took power, Uganda had 33 districts which increased to 81 districts by 2008. The districts increased to 112 by 2011, but reduced to 111 after the Capital city ceased to be a district” (John Odyek, Mary Karugaba and Moses Walubiri – ‘25 more districts created’ 19.07.2012, New Vision).
Than my own calculation from November 2019:
The State has continued to create the districts and sub-counties. In 2016 there was 112 districts and by 2021, there will be 135 districts. As well as there was 1,403 sub-counties in 2016, while in 2021 there will be 2057 sub-counties.
With knowing this and the knowledge of the mushrooming state. There is bit a late to cry foul over more town councils and the affordability. When during your time the state has gone from having 33 districts to 135 districts in 2021.
Therefore, this warning seems a bit late:
“They are going to be too many and not affordable. Let the little money we have be concentrated first in maintaining security, building infrastructure(roads, railway, electricity, schools, and health centres) and not expanding administrative costs,”Museveni warned in November 28 letter to Butime. The warning by the president comes at a time when government recently announced the creation of 162 new town council that started being operational this year, whereas others will be operational by July 1, 2020” (Kenneth Kazibwe – ‘Museveni warns against creation of new municipalities’ 08.12.2019).
Because of this, I don’t believe the man. I really don’t believe the President and his motives here. It is weird that he has issues, when his made so many districts and sub-counties already. That creating further town councils only follows the modus operandi of the state.
Not like its a revolutionary idea from the state to make more. It would be more shocking if he started to merge sub-counties and districts. So, that it would be less districts and sub-counties in the Republic. In this current stage and time, that would have been positive and plans for actual change. However, than the devolution and the years of curving the districts. It would show the public that it was only political motivated and not really making government better.
That he warns about this in 2019 after 33 years in power and been so hyper-active with creating smaller entities. His surely the wrong man to signal the red-flag. Yes, the state cannot afford more town-councils and such. But that is because the state has already to many districts and sub-counties to pay for.
The state is already deficit financing, the mushroomed state, which the President and his men has created over the years. That is why, writing a letter this year isn’t solving anything or making a difference on the negative and expensive spiral, the President has started. The President knows this, but thinks this make him look smart. When it doesn’t, since his in charge of all these small entities and that will part of his legacy. He can cry now, but his crocodile tears are coming late.
He should have stopped before he created a 100 districts more in his time. Who knows how many sub-counties his created, but surely a 1000 by now. Than count the Municipalities and Town Councils, than you get humongous number. That is what bloated numbers sound like. Therefore, sending out warnings now is late from the old man, he should have done it long time ago, but he didn’t care. Peace.
“Deficit financing, however, may also result from government inefficiency, reflecting widespread tax evasion or wasteful spending rather than the operation of a planned countercyclical policy. Where capital markets are undeveloped, deficit financing may place the government in debt to foreign creditors. In addition, in many less-developed countries, budget surpluses may be desirable in themselves as a way of encouraging private saving” (Encyclopaedia Britannica – ‘Deficit financing’ (25.08.2015).
In the original budget for 2019/20, the estimated domestic revenue of the state was about Shs. 20 trillion shillings, while the rest would be covered by close to Shs 10 trillion shillings in this manner the budget would cover the 40 trillion shillings. Today in Parliament, the debt trap, which was forecasted by several of Civil Society Organizations and others was proven.
Not only with the recent stipulation of the first Supplementary Schedule to the Budget Year of 2019/20, but also the lack of domestic revenue. This again proves the trouble with generating even half of the budget. As the Parliament are this week, either accepting borrowing 2 trillions domestically to boost the lack of domestic revenue. That means the Uganda Revenue Authority (URA) and the state haven’t delivered on the promise. As the state was spending more and more, but not having the funds to do so.
Therefore, if the state does this. Than, Shs. 2 trillions are loaned to cover for the lack of delivery, the lack of preparations from the government and the added costs of the local government units created. The government knows this, but acts surprised that state have to invest in it. That’s why they have a supplementary budget for it and surely there will be more schedules before the end of the financial year.
Just look at this:
“To address the projected revenue shortfall presented in paragraph 3 and the additional expenditure pressures presented under paragraph 9, Government requires a total amount of Euro 600 million equivalent to UGX 2,439 bn (Two Thousand Four hundred and Thirty-nine Billion) to finance part of the budget deficit” (Ministry of Finance, Planning and Economic Development (MoFPED) – ‘THE PROPOSAL TO BORROW UP TO EURO 300 MILLION (EURO THREE HUNDRED MILLION) FROM STANBIC BANK (U) LTD AND EURO 3OO MILLION (EURO THREE HUNDRED MILLION) FROM TRADE DEVELOPMENT BANK TO FINANCE THE BUDGET DEFICIT FOR FY 2019/20, December 2019).
“Given the revenue performance in the first two quarters of the FY 2019/20, the projected revenue turnout for FY 2019/20 is Shs 181575.18 billion, against the target of Shs 20,448.73 billion. This
reflects a projected shortfall of Shs 1,873.55 billion” (MoFPED, 2019).
“In line with the above Section of the PFMA 2015, Ushs 437.631 billion representing 1.08% of the Approved Budget for FY 2019/20 has been authorized by the Minister of Finance, Planning and Economic Development as Supplementary funding. The purpose of this letter therefore, is to submit Supplementary Schedule 1 FY 2019/20 for consideration by Parliament. Please make arrangements for the Minister of Finance, Planning and Economic Development to lay the schedule before Parliament” (Keith Muhakanizi – ‘SUPPLEMENTARY SCHEDULE 1 FY 20I9/20’, 21.09.2019).
“Rt. Hon. Speaker, in line with Section 25 (1) of the Public Finance Management Act, 2015 (as amended), I authorized and have accordingly submitted to Parliament Supplementary Schedule 1 amounting to Ushs. 437.6 billion for this FY” (MoFPED, 2019).
“In line with the above, the budget for FY 20Lgl20 is facing the following constraints:
– URA shortfall in revenue of Shs 1,873.55 billion;
– Additional expenditure pressures of Shs. L,432.2bn
– Non-receipt of World Bank budget support funds of Shs. 375 bn
– Non-receipt of capital gains tax of Shs. 225 billion (USD 60
10. The total revenue resource shortfall in the FY 2019/20 therefore amounts to Shs. 2,473.55 billion” (MoFPED, 2019).
We know this is serious, when the budget of the FY 2019/20 was 40 trillion. When 2,4 trillion of these have to get borrowed domestically. Even if 437bn of these are supplementary budget and wasn’t in the original budget of the FY. Still, the 2 trillion are a big slice to borrow and gain more loans. This is a debt trap, trapped by even more trap. As the tax-base isn’t growing as forecasted or as possible. By this estimation of the original budget, the domestic borrowing in this financial year would go up from about shs. 10 trillion shillings to about shs. 12 trillion shillings.
Because, with to much taxation, the funds are taken out of the circulation and isn’t spread as much. Not having the ability to generate more earnings for the citizens. They cannot spend, because they are actually paying taxes. That’s why you need sustainable taxes, which makes sense.
That’s why these loans are coming, because the state defaults on taxes, lacks the tax-base and doesn’t have the opportunity to gain the needed revenue. This the reality of the state. They will ask for the loans and add more debt. However, the government will not take responsibility for the acts done. The state are deficit financing and not generating revenue. That is why they are loaning even more debt. At a rate, which should worry anyone following it. Peace.
Well, the Police Force who besieged his home in Kasangati, Wakiso District. He was able to surpass it and get into his car, as he drove towards his office at Katonga Road. Dr. Kizza Besigye were intercepted and towed his car first to Naggalama Police Station, before returning him to his home. It was a few hours of stress, ruckus and lot of nonsense.
As elsewhere, there was all festivities, as the President and his convoy walked across the CBD to Kololo. Surely, the walk from the offices of Besigye to Constitutional Square would have gone well, but the authorities doesn’t want to have two conflicting marches nor have anyone stealing the spotlight from the Head of State.
The Police Force claims they wasn’t informed, but the Peoples’ Government had put out an statement about it and their planned route on the 29th November 2019. Much earlier, than the State House and Police Force itself informed the public about their route through the CBD.
Therefore, this was a hit, a planned hit and to think otherwise is naïve at this point.
Some simple reports on the matters:
“Police has surrounded the home of Rtd Col Kiiza Besigye after he announced to lead a parallel Anti-Corruption Walk from Katonga Road to the Constitutional Square. This will be after President Museveni leads the public in the anti-corruption walk today” (Capital FM Uganda, 04.12.2019).
“Police have stopped a planned parallel anti-corruption walk by former Forum for Democratic Change President Dr Kizza Besigye today. Besigye’s team were planning a walk similar to that of State House Anti-Corruption Unit where the chief walker is President Museveni” (97.8 Kazo FM Omushomesa, 04.12.2019).
That’s why Besigye wasn’t allowed to walk. The authorities shut it down. They stopped this from happening and did it willingly. There was no efforts spared from stopping it from happening. The man who had no other alternative motives, than actually battle the corruption. Not do another PR Stunt, like the Chief Walker.
Let’s be serious for a little moment. This is the proof of the charade. There is no interest combatting the corruption in the Republic, neither the impunity and lack of rule of law. When, a man like Besigye without forewarning is arrested in his home and besieged by Anti-Riot Police… That is just the mere reality and that doesn’t do any good. Still, this is the proof of what the authorities to its citizens.
This is not new and not the last time Besigye will be arrested, nor house-arrested or anything else. Every time he tries to cause a stir, he gets violated by the state. There is nothing else that will happen. This is common thread in the Republic and his the first victim of this. Peace.