Kabale District Council has approved a UGX 57.7 billion budget for the Financial Year 2025/2026, with a strategic focus on human capital development, infrastructure, and improved service delivery.
The motion to present the budget was tabled by District Chairperson Nelson Nshangabasheija and deliberated by the District Council, chaired by Speaker Flavia Nyinakiiza Kanagizi on Tuesday. This process was conducted in line with Section 88 of the Local Governments Act (Cap 138), which empowers local governments to formulate, approve, and implement balanced budgets.
In his budget address, Nshangabasheija stated that the fiscal plan aligns with Uganda’s Vision 2040, the Fourth National Development Plan (NDP IV), and Kabale’s District Development Plan IV (DDP IV). He emphasized that the budget reflects the district’s commitment to transformative development and the national aspiration of attaining middle-income status.
“This budget seeks to contribute to socio-economic transformation and increased household incomes. We remain committed to delivering services that uplift the well-being of our communities,” Nshangabasheija said.
Revenue Structure for FY 2025/2026
The total revenue forecast for the upcoming financial year is structured as follows:
- Local Revenue: UGX 937.4 million (1.6%)
- Central Government Transfers: UGX 55.7 billion (96.5%)
- Donor Funding: UGX 1.08 billion (1.9%)
The approved budget represents a 6.6% increase (UGX 3.58 billion) from the draft estimates presented in March 2025 and a 4.2% rise (UGX 5.2 billion) from the FY 2024/2025 allocation of UGX 55.4 billion.
This increase is largely attributed to revised Indicative Planning Figures (IPFs) from the Ministry of Finance, Planning, and Economic Development. Key contributions include UGX 3.62 billion in conditional non-wage grants for pensions and gratuity arrears, and UGX 26 million earmarked to support audit functions at both district and town council levels.
The Chairperson further noted that the final figure may increase upon receipt of additional IPFs to address salary arrears for staff who missed payments in FY 2023/2024 due to wage shortfalls.
Key Priority Areas of Expenditure
A significant portion—62.9%—of the budget is allocated to Human Capital Development, with a strong emphasis on improving education, healthcare, population safety, and reducing gender-based vulnerabilities.
Other major allocations include:
- Public Sector Transformation: UGX 13.16 billion (22.8%)
- Integrated Transport Infrastructure and Services: UGX 2.58 billion (4.5%)
- Agro-Industrialization: UGX 1.83 billion (3.2%)
- Development Plan Implementation: UGX 1.19 billion (2.1%)
- Natural Resources, Environment, Climate Change, Land & Water Management: UGX 872.9 million (1.5%)
- Governance and Security: UGX 1.09 billion (1.9%)
- Sustainable Urbanization and Housing: UGX 466 million (0.8%)
- Private Sector Development: UGX 111.9 million (0.2%)
- Regional Balanced Development: UGX 126.7 million (0.2%)
- Tourism Development: UGX 10.8 million (0.02%)
Budget Theme
The theme for the FY 2025/2026 budget is: “Enhancing Effective Service Delivery with Emphasis on Quality Education, Health, Infrastructure, and Agriculture for Community Transformation.”
Nshangabasheija reaffirmed the district’s commitment to strategic development despite resource limitations, highlighting the importance of prudent financial management and alignment with both national and local priorities.
