By Wakibi Iddi
Government has allocated Shs486.05 billion for Local Governments in the Financial Year 2027/28 to strengthen infrastructure, service delivery, planning, health, agriculture and local economic development.
The proposed allocations were outlined by the Minister of State for Finance, Planning and Economic Development (General Duties), Cissy Mulondo, during the Central Region Local Government Budget Consultative Workshop in Masaka City.
The funding priorities are based on concerns raised by Local Governments during previous budget consultations and are intended to strengthen the capacity of districts and urban authorities to implement Government programmes and deliver essential services.
Infrastructure will receive a significant share of the proposed funding, including Shs250 billion for Greater Kampala infrastructure and Shs59.5 billion for urban roads and drainage in the six largest districts. A further Shs6 billion is planned for road maintenance.
To strengthen administrative and planning capacity, Government has proposed Shs32 billion for vehicles for Accounting Officers, Shs16.05 billion for the Planning Grant and Shs13.2 billion for the induction of political leaders.
In the health sector, Shs20 billion is proposed for the procurement of ambulances to improve emergency response and referral services. Another Shs15.8 billion will support the equipping of agricultural extension workers who provide technical guidance to farmers and promote increased production.
Government has also proposed Shs64 billion for physical planning and coordination of public infrastructure, while Shs9.5 billion will support tourism development.
However, Mulondo cautioned Local Governments that increased funding must be matched by stronger management, accountability and measurable results.
“Increased funding must translate into better services and tangible results for communities,” Mulondo said.
She urged local authorities to address procurement delays, strengthen supervision, safeguard public resources and ensure that infrastructure is properly maintained after investment.
Mulondo said the FY2027/28 budget would also place greater emphasis on domestic revenue mobilisation, attracting private investment, creating jobs, expanding exports and increasing household incomes.
She further called for stronger accountability in the management of public resources at the local level, where many Government programmes are implemented directly.
Local Governments are required to submit their FY2027/28 Budget Framework Papers by November 13, 2026, in accordance with the Public Finance Management Act.
The consultations are being conducted under the theme, “Full Monetisationof Uganda’s Economy through Commercial Agriculture, Industrialisation, Expanding and Broadening Services, Digital Transformation and Market Access.”
The proposed funding is intended to strengthen Local Governments’ capacity to translate national development priorities into improved services and economic opportunities for communities.