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Govt Opens Budget Talks With Local Governments

The consultations are being held under the theme: “Full Monetisation of Uganda’s Economy through Commercial Agriculture, Industrialisation, Expanding and Broadening Services, Digital Transformation and Market Access.”

Obed Kankiriho
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Obed Kankiriho
Journalism is not just a job; it is a calling. Mr Obed Kankiriho believes journalism is one of the few platforms where the views of the...
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Government has started regional consultations with local governments to gather their priorities and challenges ahead of the formulation of the Shs2027/28 national budget.

The consultations, which started on Monday and will run until October 2, bring together Resident District Commissioners, district chairpersons, chief administrative officers, technical officers, development partners and civil society representatives.

The consultations officially kick-start the local government budget process in line with Article 155 of the Constitution and the Public Finance Management Act, Cap. 171.

Speaking at the opening of the consultations in Masaka, State Minister for Finance, Planning and Economic Development (General Duties) Cissy Mulondo said the exercise will review concerns raised during the current financial year and identify urgent service delivery challenges.

The consultations will also collect local government views on the proposed priorities for the 2027/28 Budget Strategy.

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Minister Mulondo said government has responded to some of the concerns raised in previous consultations through increased allocations to key areas.

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These include Shs13.2 billion for the induction of political leaders, Shs32 billion for vehicles for accounting officers, Shs16.05 billion for the Planning Grant and Shs64 billion for physical planning and public infrastructure coordination.

Other allocations include Shs15.8 billion to equip extension workers, Shs20 billion for ambulances, Shs9.5 billion for tourism development, Shs250 billion for Greater Kampala infrastructure under the Uganda Cities and Metropolitan Infrastructure Development (UCMID) programme, Shs59.5 billion for urban roads and drainage in the six largest districts and Shs6 billion for road maintenance.

The minister also noted that government has continued with phased salary enhancements for selected administrative, technical and frontline staff.

However, she said local governments continue to face challenges, including staff absenteeism, weak supervision and performance, unspent wage resources despite staffing gaps, misuse of public resources and procurement delays.

She also cited weaknesses in contract management, cost overruns and inadequate maintenance of public infrastructure.

Minister Mulondo urged local governments to develop practical measures to ensure public resources are translated into tangible improvements in the lives of citizens.

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“The focus should be on ensuring that every resource allocated to local governments delivers results for the people,” she said.

The 2027/28 Budget will be guided by the Tenfold Growth Strategy and seven strategic shifts, including revenue-led fiscal consolidation, prudent management of oil revenues and mobilisation of private capital for agro-industrialisation, tourism, minerals and science, technology and innovation.

Other priorities are accelerated implementation of agro-industrialisation, tourism, minerals and science, technology and innovation and their enablers; creation of jobs, expansion of exports and improvement of household incomes; strengthening the Parish Development Model, Emyooga and Presidential Skilling and Industrial Hubs.

Government will also emphasise enforcement of budget reforms aimed at improving fiscal discipline, efficiency and accountability for results.

Minister Mulondo said local governments have a critical role in supporting investment, production and market access while ensuring national priorities translate into jobs, wealth creation and improved services at community level.

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She directed local governments to prepare focused, realistic and results-oriented budgets and submit their Budget Framework Papers for the 2027/28 financial year in accordance with the Public Finance Management Act by November 13, 2026.

In Lira, State Minister for Planning Amos Lugoloobi is presiding over the regional consultations, where he has emphasised the importance of integrated infrastructure to improve connectivity between Northern Uganda, eastern Uganda and Greater Kampala.

Mr Lugoloobi has also urged local governments to improve project implementation and service delivery while strengthening efforts to fight corruption.

In Hoima, State Minister for Microfinance Shartsi Musherure is leading the consultations and has urged local government leaders to openly present their priorities, challenges affecting project implementation and proposals for improving service delivery.

The consultations are being held under the theme: “Full Monetisation of Uganda’s Economy through Commercial Agriculture, Industrialisation, Expanding and Broadening Services, Digital Transformation and Market Access.”

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Journalism is not just a job; it is a calling. Mr Obed Kankiriho believes journalism is one of the few platforms where the views of the oppressed and marginalized can be heard. This is what his journalism aims to do: bring to light untold stories.
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