How Your Council Generates Revenue: Local Taxes, Fees, and Government Support

Council revenue is the lifeblood of local development. Without adequate financial resources, it becomes challenging for any council to fulfill its duties. So where does the money come from?

1. Local Taxes and Levies: These include property taxes, market tolls, business licenses, and other fees collected within the council jurisdiction. For instance, traders may pay stall fees, and households may pay sanitation or waste collection fees.

2. Government Transfers: Councils receive financial allocations from the central government to support essential services. These may come in the form of recurrent and investment budgets. The Ministry of Finance and the Ministry of Decentralization and Local Development are key players in disbursing these funds.

3. Development Partners and Grants: In some cases, councils may benefit from external aid—grants or development support from NGOs, international organizations, or bilateral partners for specific projects.

4. Council-Owned Enterprises or Rentals: Revenue may also come from council-managed properties, markets, or rental halls.

Each of these sources contributes to a pool of funds that the council allocates to different departments and services. Strengthening these revenue streams and ensuring transparency in their collection and management is vital for local development.