The Minister of Finance (General Duties) Henry Musasizi has warned local governments against persistent fiscal indiscipline and failure to align development plans with national priorities, saying the trend threatens service delivery and the effectiveness of Uganda’s growth strategy.
Opening the Local Government Budget Consultative Workshop for the FY 2026/27 in Kabale District, Minister Musasizi said many districts are still operating with draft or non-existent development plans despite the rollout of the Fourth National Development Plan (NDP IV) last year. He cautioned that non-compliant Budget Framework Papers will be rejected outright.
“Some Accounting Officers continue to submit budgets without verified payroll audits or harmonised development plans. This will no longer be tolerated,” Musasizi stressed, citing recurring salary, pension, and gratuity shortfalls as evidence of poor planning.
The consultations, held under the theme “Full Monetization of Uganda’s Economy through Commercial Agriculture, Industrialization, Expanding and Broadening Services, Digital Transformation and Market Access,” are meant to shape the FY 2026/27 budget priorities.
But beyond budget targets, the minister acknowledged deep service delivery challenges. Local governments have long raised concerns over inadequate funding, poor road equipment, lack of transport for monitoring, and weak extension services.
Government, he said, has injected funds into local government financing, increasing allocations from Shs 2.36 trillion in FY 2015/16 to Shs 7.34 trillion in FY 2025/26. Additional resources have gone to education, health, agriculture, water, and community empowerment programmes such as the Parish Development Model and Emyooga.
He further noted efforts to address gaps, including Shs 35.2 billion for vehicles for district leaders, Shs 11.9 billion for extension services, and over Shs 600 billion channelled into upgrading health centres and seed schools under the UGIFT programme.
However, Minister Musasizi admitted that key issues remain unresolved due to resource constraints. These include inadequate councillors’ allowances, poor internal audit performance, and road maintenance backlogs.
“Government has taken note of all other concerns and these will be addressed in subsequent years over the medium term,” he said.
The FY 2026/27 budget will prioritize value addition in agriculture, minerals, oil and gas, and tourism, while sustaining investment in infrastructure, electricity, industrial parks, education, health, and revenue mobilization.
Analysts say the bigger question is whether local governments, plagued by weak systems and limited capacity, can translate these allocations into better services for citizens. Without tackling issues of planning discipline, accountability, and project execution, they warn, the government’s ambitious “tenfold growth strategy” may remain on paper.
Minister Musasizi urged leaders to finalize development plans by March 2026 and submit Budget Framework Papers by November 2025.
“We must grow the economy tenfold, but this requires discipline and effective execution at every level of government,” he said.
CUE IN MINISTER MUSASIZI….ON THE CALL……ENG//
