Uganda Government Allocates Shs486 Billion to Boost Local Services

The Ugandan government has earmarked a substantial Shs486 billion to bolster services at the local government level. This significant financial injection is intended to tackle persistent challenges in service delivery, infrastructure development, planning capabilities, and local economic growth.

These funding priorities were revealed by Cissy Mulondo, the Minister of State for Finance, Planning and Economic Development, during a recent consultative workshop in Masaka City. The allocations are a direct response to concerns previously raised by local governments during budget consultations.

Infrastructure development is set to receive a major portion of the funds, with Shs250 billion designated for the Greater Kampala area and Shs59.5 billion allocated for urban roads and drainage in the six largest districts. An additional Shs6 billion has been set aside for general road maintenance.

To enhance administrative and planning capacity, Shs32 billion will fund vehicles for Accounting Officers, Shs16.05 billion is allocated for the Planning Grant, and Shs13.2 billion will support the induction of newly elected political leaders.

In the health sector, Shs20 billion will be used to procure new ambulances, while Shs15.8 billion will support agricultural extension workers, aiming to improve technical support for farmers and boost agricultural production.

Furthermore, Shs64 billion has been allocated for physical planning and coordinating public infrastructure projects, with an additional Shs9.5 billion dedicated to fostering tourism development.

Minister Mulondo urged local governments to ensure this increased funding leads to tangible results, emphasizing the need for efficient management, timely procurement, and strong supervision to safeguard public resources and maintain infrastructure effectively.

Looking ahead, the Financial Year 2027/28 budget will focus on domestic revenue mobilization, attracting private investment, job creation, export expansion, and increasing household incomes. Accountability in managing public resources at the local level was also stressed as a key priority.

Local governments are required to submit their FY2027/28 Budget Framework Papers by November 13, 2026. The consultations are being conducted under the theme “Full Monetisation of Uganda’s Economy through Commercial Agriculture, Industrialisation, Expanding and Broadening Services, Digital Transformation and Market Access.”

Source: https://nilepost.co.ug/news/372753/govt-sets-aside-shs486bn-to-strengthen-local-government-services