The Government of Uganda has commenced regional consultations to shape the Local Government budget for the 2027/28 financial year, bringing together district leaders, technical officials, development partners and civil society representatives.

The consultations, which began on Monday, September 14, will run until October 2, 2026. They mark the start of the Local Government budget preparation process and are being conducted in accordance with Article 155 of the Constitution and the Public Finance Management Act, Cap. 171.

Speaking at the opening of the consultations, Minister of State for Finance, Planning and Economic Development (General Duties), Hon. Cissy Mulondo, said the workshops would provide an opportunity to review concerns raised during the FY 2026/27 budget process, identify urgent service delivery challenges and gather views from Local Governments on the proposed Budget Strategy for the 2027/28 financial year.

Mulondo said the government had responded to some of the concerns raised during the previous budget cycle through funding allocations targeting administration, planning, infrastructure and public service delivery.

The allocations highlighted by the minister include Shs13.2 billion for the induction of political leaders, Shs32 billion for vehicles for accounting officers, Shs16.05 billion for the Planning Grant and Shs64 billion for physical planning and public infrastructure coordination.

Other funding commitments include Shs15.8 billion to equip extension workers, Shs20 billion for ambulances, Shs9.5 billion for tourism development, Shs250 billion for Greater Kampala infrastructure under UCMID, Shs59.5 billion for urban roads and drainage in the six largest districts, and Shs6 billion for road maintenance.

The minister also noted that phased salary enhancements had continued for selected administrative, technical and frontline government employees.

Despite these investments, Mulondo said Local Governments still face challenges that undermine effective service delivery. These include staff absenteeism, weak performance and supervision, unspent wage resources despite staffing gaps, misuse of public funds, procurement delays, weaknesses in contract management, cost overruns and inadequate infrastructure maintenance.

She urged Local Governments to develop practical solutions that would ensure public resources are used effectively and translate into tangible improvements in the lives of citizens.

The FY 2027/28 budget will be guided by the government's Tenfold Growth Strategy and seven strategic shifts aimed at strengthening economic transformation and public-sector performance. These include revenue-led fiscal consolidation, prudent management of oil revenues, mobilisation of private capital for Agro-Industrialisation, Tourism, Minerals and Science, Technology and Innovation, and accelerated implementation of ATMS and its supporting sectors.

The government will also prioritise job creation, exports and household incomes while strengthening programmes such as the Parish Development Model, Emyooga and Presidential Skilling and Industrial Hubs. Budget reforms aimed at improving financial discipline, efficiency and accountability for results will also form part of the strategy.

Mulondo emphasised that Local Governments have a critical role to play in translating national development priorities into practical benefits for communities. She said they must support investment, production and market access while helping to create jobs, increase household incomes and improve public services.

She directed Local Governments to prepare focused, realistic and results-oriented budgets that respond to the needs of their communities.

As part of the budget preparation process, Budget Framework Papers for the 2027/28 financial year must be submitted in full compliance with the Public Finance Management Act by Friday, November 13, 2026.

The regional 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 workshops are expected to contribute to the preparation of the FY 2027/28 budget and help align Local Government priorities with the government's broader economic transformation and service delivery agenda.