28 Aug 2026

 Tutume District Council’s income generating sources have been underperforming, with interest on investment yielding only five per cent against projected 33 per cent.

Addressing a full council session on Tuesday in Tutume, council chairperson, Mr Tabona Masole said the low output of interest in investment was as a result of low market rates prevailing in the country.

The low rates, he said, had drastically affected the council’s plans of generating additional revenue to add to the support grant they received from the ministry. 

Mr Masole stated that the approved recurrent budget stood at P270.3 million, being a sharp decline from their original proposed P319 million, adding that the severe compression had caused major underfunding across critical service areas most notably in road maintenance, utilities, security and social relief.

He noted that as of July, the actual expenditure stood at P85.6 million, translating to 31.6 per cent budget utilisation while the local authority remained on course to achieve the 50 per cent midyear target by the end of September. 

Nonetheless, he said the council’s broader financial position was severely hampered by weak revenue collection, noting that the council had managed to collect just over P965,000 in own source revenue collection against target of P2.4 million. 

The shortfall, he said, was further worsened by the temporary closure of council revenue offices following an incident of vandalism and attempted theft. 

He said the incident remained under police investigation and assured fellow councillors that security measures were immediately upgraded to guard against future breaches.

He emphasised that there was need to secure long-term financial sustainability in order for the council to be able to realise its vision of equitable and sustainable livelihoods. Mr Masole added that it was an obligation to reduce reliance on government grants given the current climate of budget cuts and funding shortfalls by building its own financial autonomy.

He affirmed that building resilient, inclusive and sustainable local economies remained a priority and that true to that commitment, efforts were underway to operationalise the Tutume District Investment Company to unlock new commercial revenue streams. 

Also, he noted that Expression of Interest to engage board members closed on the August 16 and that the next steps included vetting and screening the applicants, followed by formal appointments.

On other updates, he said that despite tight fiscal constraints, the council’s commitment to grassroots democracy remained unshaken, noting that between July 6 and 14, 34 local VDCs successfully held their elections through the diligent efforts of the districts and village extension teams. He said that comprehensive training would be conducted for all newly-elected members to ensure that the committees delivered appropriate community interventions. ENDS