By KT Reporter
The Ministry of Finance, Planning and Economic Development is concluding its second week of the Local Government Budget Consultations for the financial year 2026/27, amidst calls for more funding from the leaders.
The recommendations will shape the budget for the financial year 2026/27, according to Ramathan Ggoobi, the Permanent Secretary and Secretary to the Treasury.
Ggoobi says that the total preliminary resource envelope (the money the government expects to have and spend) for the financial year 2026/27 amounts to 69.399 trillion Shillings, down from the 72.376 trillion Shillings budgeted for this financial year.
The domestic revenues are projected at 40.090 trillion, up from 36.806 trillion for FY 2025/26. The Ministry has reiterated its commitment to fight budget indiscipline, especially by the accounting Officer, through what it terms “budget games.”
It specifically singles out the budgetary requests made to fill shortfalls for salaries, pensions and gratuity, after the budgets are approved.
This consultation exercise involving all Local Governments in Uganda is due to end next week. The LG leaders have been urged to ensure that their budgets are in line with the priorities of the Government to grow the economy tenfold.
The main agenda is mainly the NDPIV, where participants discuss the opportunities to enhance service delivery and grow the economy tenfold, through opportunities in Agro-industrialisation, Private sector development, Tourism development, Human capital development, Regional development and sustainable urbanisation and housing.
Others are the opportunities that must be harnessed in the Integrated transport infrastructure and services, as well as natural resources, environment, climate change, land and water resources management.
According to the Ministry, the participants have ably presented the service delivery challenges that must be addressed to unlock the potential of local governments to effectively contribute to the Tenfold growth strategy.
Most of these challenges revolve around additional financing, adequate staffing levels and infrastructure development.
The Finance Ministry also urged them to finalise their budget framework papers and submit them not later than November 14, 2025, and their respective development plans by March 31, 2026, to guide timely budgetary releases in FY 2026/27.
The consultations are taking place at regional centres, with the first week exercises held at Arua, Lira, Jinja and Hoima, followed by Gulu, Mbale, Mbarara, Kabale and Masaka.
At Jinja, the Minister of State for Planning, Amos Lugoloobi, reiterated that all issues raised during these engagements will be studied by the respective Programme Working Groups and subsequently by Cabinet and Parliament for consideration during finalisation of the budget for FY 2026/27.
He also urged LG leaders to undertake wide consultations in their areas by ensuring full participation of the respective Councils and all stakeholders.
“The consultations should be early enough to avoid late approval of budgets, as well as minimise the distortions,” said Lugoloobi, adding that LG work plans should be aligned to the NPD IV priorities, and the Ten-fold growth Strategy.
This was re-echoed by PSST Ggoobi while addressing the media in Kampala, that the Accounting Officers need to look ahead instead of budgeting for the problems or needs at hand.
“Budget preparation should not be limited to current problems. Accounting Officers must anticipate future needs, integrate long-term priorities, and align plans with the Tenfold Growth Strategy and NDP IV.”
On the consultation exercises, Ggoobi said it was part of the consensus-building and elimination of gaps that accounting officers exploit to misuse public resources.
The theme of the budget for FY 2026/27 is “Full Monetisation of Uganda’s Economy through Commercial Agriculture, Industrialisation, Expanding and Broadening Services, Digital Transformation and Market Access”.
You should discuss and ensure that your budgets are prepared to facilitate the effective implementation of the Budget Strategy. Please interest yourselves in details of specific Local Government intervention areas – Musasizi. For FY 2026/27, the focus is on boosting government efficiency, delivering projects better, and unlocking higher productivity for all Ugandans.
In Kabale, the Minister of State for General Duties, Henry Musasizi, reiterated that the focus of the budget for the next financial year will be on deepening the implementation of the anchor growth sectors of ATMS and Enablers.
The local government officials in the Kabaale area queried why the local political leaders were not inducted into their roles to prepare them for their constitutional roles, like monitoring the progress of public projects.
Musasizi assured them that funds will be provided in the budget for FY 2026/27 to induct political leaders after the 2026 general elections.
The Minister also said additional funding of Ushs 11.93 billion had been committed in the budget towards improving extension services, adding that this money would be maintained in the budget over the medium term to ensure effective and efficient extension services in the country.
He cautioned Accounting Officers to guard against poor budgeting and fiscal indiscipline, manifested by the continued submission of requests for wage, pension and gratuity shortfalls even after approval of the FY 2025/26 budget.
The same was repeated by State Minister for Micro Finance, Haruna Kasolo, in Masaka, who warned that after the budget has been approved, there should be no requests for wage, pension and gratuity.
In Kabale, the ministry was pinned on poor services in health and education, especially regarding infrastructure and inspection.
Representatives from the Ministry of Education and Sports explained that the inspection grant in every local government is received as a fixed 4 million Shillings per year, as well as 336,000 Shillings for each school within the district.
On the construction of latrines in schools, they explained that this is funded under the non-wage recurrent budget since the School Facilities Grant for development was smaller, and the maintenance grant was larger.
The two ministries are in discussions to consolidate the maintenance grant into the development grant, which should give schools more flexibility to implement needed activities without audit.
In Mbale, the Internal Auditor General, Fixon Akonya Okonye, appealed to the Accounting Officers to support their respective political leaders to effectively participate in the budget preparation and execution.
“I will take a keen interest in the challenges and the agreed solutions that will contribute to the development of appropriate interventions in the financial year 2026/27 and the medium term.”
On the issue of salary, pension and gratuity requests after budget approval, Dr Okonye said, “For financial year 2026/27, emphasis will be on strict adherence to verified payroll audits, outcomes from the Ministry of Public Service harmonisation exercise and the integrity of data captured on the Programme Budgeting System when preparing all salary, pension and gratuity budgets.”
He attributed this persistent trend to underlying issues of poor budgeting and fiscal indiscipline.
At the consultations held in Mbale for the Elgon region, local government authorities accused commercial banks of frustrating government wealth creation programmes by publicising their own financial products, which are usually more expensive.
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