Maximize local revenue collection, councils tipped

Balaka, January 28, Mana: Local councils in the country have been asked to fully utilize and maximize local revenue collection in their districts, which local business investors always bring as this will improve the financial status core at the councils.

This comes amid concerns that came Monday in Blantyre, as District Commissioner for Balaka, Tamanya Harawa presented how the council performed during the last financial year, during the 2025-2026 budget review session with the National Local Government Finance Committee (NGLFC).

Harawa said, among other challenges, Balaka has been getting inadequate and inconsistent funding from the treasury, which he observed, affected their day-to-day service delivery.

“As a way of cushioning ourselves from financial problems, Balaka District Council has developed the Quinquennial Valuation Roll (QVR) in which all businesses and dwelling houses were revalued so that the council starts collecting more money for its day-to-day activities.

“We also would like to start utilizing our bus depot, we know the depot can be used by big bus companies as their offices, taxi operators, as well as minibuses, can also be utilizing the same for our good,” he said.

Harawa also disclosed that the council with support from Centenary Bank intends to start electronic payments in their strong hold markets so that revenue is enhanced.

He also noted that in the last financial year, Balaka District Council has managed to pay all outstanding salary arrears to its direct employees as one step forward in making sure that service delivery is enhanced.

“We know that when an employee is not motivated, he or she cannot perform well in his or her duties, that is why although we had arrears for five months when we started the previous financial year, we tried and settled all before December,” he added.

On his part, Director of Infrastructure and Economic Development at NGLFC, Paul Chipeta urged all councils to always strive for more revenue so that service delivery is not compromised.

“At first, councils used to complain that funding is inadequate, we have since changed some things. For example, councilors’ honoraria are being funded by the NGLFC not from the monthly funding, yet councils are still complaining of funding gaps, that is why we are urging councils to be proactive in local revenue collection.

“The local revenue performance that they have presented needs to be checked by endorsing several measures to enhance revenue collection. They need to enhance awareness to the locals on the need to pay tax, as well as improving service delivery to the people so that the citizen in turn can pay the much-needed tax,” Chipeta said.

However, Chipeta commended Balaka District Council for paying all outstanding salary arrears to all its direct employees, saying it was a step forward in enhancing revenue collection.

“I was listening attentively to the budget presentation and I saw that there are no serious issues that need to be worked on when you go back, this also shows the kind of commitment that you have put during the entire budget formulation process,” he said.

In a separate interview, Balaka District Council Director of Planning and Development, Chris Nawata said the council has already seen potential in the mining companies, which are exploring mining opportunities for various minerals in the district.

“We are geared to make sure that Balaka must also benefit from the various mining activities happening in a lot of areas so that the council increases its local revenue base; thereby, enabling good service delivery to the locals,” he said.

In local revenue, Balaka intends to collect K345 million in 2025-2026 against K231 million last financial year.