Finance minister Matia Kasaija has asked local government leaders to sparingly use available funds saying the government has no money.
Speaking to KFM recently, Kasaija said the government currently has limited cash at its disposal, and yet the demands for it are many.
Kasaija has been responding to concerns affecting service delivery in the local communities raised by the mayor of Nansana municipality who is also the chairperson of the Alliance of Mayors in Uganda, Regina Bakitte.
According to Bakitte, whereas the Ministry of Finance releases quarterly funds on time, they are dismayed with the delayed release of locally raised revenue which comes with a condition of a cash limit.
She has decried the huge budget cuts for the next financial year especially where the Discretionary Development Equalization Grant (DDEG) to fund improvements in local infrastructure like schools has been scrapped.
“There has been a reduction from 35 billion to 30 now and the major area that has been affected is the education sector,” Bakitte said.
In response, Kasaija says the budget cuts are inevitable given the financial constraints faced by the country.