The appropriated budget for local governments for the financial year 2022/2023 stands at sh5.1 trillion. It has more than doubled from this financial year’s sh2.3 trillion.

With an allocation of sh94b, Wakiso district took the biggest slice followed by Kasese (sh78.7b), Tororo (sh67.7b), Luwero (sh66.7b), Ntungamo (sh60.2b), Yumbe (sh58b) and Mukono (sh57b).

The administrative units with the lowest allocations included the municipalities of Kisoro (sh4.6b), Bugiri (sh4.8b), Iganga (sh6.7b), and Moroto and Nebbi with about sh7.1b. sh363b for new cities The 10 cities created last year took a combined budget of sh363b, the bulk is to cater for wages (sh165b) with sh126.3b being allocated for development.

Of the new cities, Gulu received the highest allocation of sh48.7b followed by Jinja (sh47.3b), Mbale (sh47.1b), Masaka (sh43.6b), Arua (sh41.3b) and Mbarara (sh38.9b).

Soroti city received the lowest amount of sh23.9b. Gulu city still led in terms of development budget with up to sh24.6b of its total budget going for development.

The other cities with substantial amounts to finance their development efforts include Masaka (sh20.4b) followed by Hoima (sh18.8b).

Criteria Laban Mbulamuko, the director of budget at the finance ministry, explained that there is a specific formula followed in determining how much money to disburse to each local government.

Budget Brief Case

Mbulamuko said the main variables in the formula are population size, area size, poverty figures and service delivery needs, and gaps.

 Julius Kapwepwe, the programs director at the Uganda Debt Network, said in the current financial year, the local government financing stood at sh2.3 trillion and has increased significantly to sh5 trillion direct financing from the central government.

plan for new town councils Effective July 1, 2022, sh46.3b has been provided for the operationalization of the 352 newly created town councils and 364 sub-counties of which sh29.3b is wage expenditure and sh17b is non-wage recurrent expenditure.

Finance minister Matia Kasaija attributed the non-functionality of town councils and sub-counties to financial constraints.

The local government minister, Raphael Magyezi, said that the Government was providing funds for the operationalization of the administrative units in the new financial year.

Magyezi noted that the Government had taken a decision not to create any new administrative units given the financial burdens being faced.

The local government minister added that in the future, the creation of any administrative units must be accompanied by a certificate of financial implication to certify that the Government has the money to fund its operations.

Additional financing According to the local government votes for the financial year 2022/23, additional financing of $300m (over sh1.1 trillion) was approved from the World Bank to continue financing the education and health programs to meet the infrastructure gaps in local government level.

The funds are expected to expand to agriculture programs to finance micro-scale irrigation and water program to finance the expansion of rural water at the village level as well as provide water to the seed secondary schools and health centers.