Government has outlined more than Shs486 billion in funding allocations aimed at addressing key priorities raised by Local Governments, including infrastructure, planning, healthcare, roads, production and tourism.

The allocations were highlighted during the Central Region Local Government Budget Consultative Workshop in Masaka City as part of preparations for Uganda’s FY2027/28 budget.

Minister of State for Finance, Planning and Economic Development in charge of General Duties, Cissy Mulondo, said the funding responds to concerns raised by Local Government leaders during the previous budget process.

Among the allocations is Shs13.2 billion for the induction of political leaders, while Shs32 billion has been provided for vehicles for Accounting Officers.

Government has also earmarked Shs16.05 billion for the Planning Grant and **Shs64 billion for physical planning and coordination of public infrastructure.

Other allocations include Shs15.8 billion to equip extension workers, Shs20 billion for ambulances and Shs9.5 billion for tourism development.

A significant portion of the funding is directed towards infrastructure. Government has allocated Shs250 billion for Greater Kampala infrastructure under UCMID, while Shs59.5 billion is set aside for urban roads and drainage in the six largest districts. A further Shs6 billion will support road maintenance.

Taken together, the allocations highlighted during the consultations amount to Shs486.05 billion.

While outlining the funding, Minister Mulondo urged Local Governments to ensure that government resources result in visible improvements in public services and economic activity.

She pointed to challenges that can undermine the impact of public spending, including procurement delays, weak supervision, misuse of resources and inadequate maintenance of infrastructure.

Recent reporting on the consultations also identified concerns including staff absenteeism, staffing gaps, weaknesses in contract management and unspent wage resources.

The Minister called for Local Governments to prepare focused and realistic budgets and to strengthen accountability so that allocated resources produce measurable results for communities.

The FY2027/28 budget preparation process is expected to place emphasis on revenue mobilisation, private investment, employment creation, exports and increasing household incomes.

The Government has also said the next budget will be guided by the Tenfold Growth Strategy and seven strategic shifts, including revenue-led fiscal consolidation, agro-industrialisation, tourism, minerals and science, technology and innovation, job creation, strengthening government programmes and implementation of budget reforms.

The Local Government consultations are part of the wider process of gathering views on priorities for the coming financial year. The consultations began in September and are being conducted in accordance with Article 155 of the Constitution and the Public Finance Management Act.

Local Governments are required to submit their FY2027/28 Budget Framework Papers by November 13, 2026, as part of the statutory budget preparation process.

The Central Region consultations are being held under the theme:

“Full Monetisation of Uganda’s Economy through Commercial Agriculture, Industrialisation, Expanding and Broadening Services, Digital Transformation and Market Access.”

The consultations are intended to help Local Governments identify service-delivery gaps, set spending priorities and align local budgets with the broader national development agenda.