Financing Local Governments in Uganda: An analysis of the Proposed National Budget FY 2019/20 and Proposals for Re-allocation

The study relied mainly on an extensive document review of all relevant budget documents focusing mainly on the Draft Estimates of Expenditure (Recurrent and Development) FY 2019/20. Identifying budget lines meant for LGs, was done through three stages, by determining whether: budget line was relevant or not to LGs; the identified budget line could be transferred directly to the LGs or not; and the budget line could be rationalized by the MDAs to improve service delivery and also free funds for LGs. The exercise explicitly took a ‘prioritised’ approach to identify LG relevant budgets and did not exhaustively review each and every expenditure item within the national budget. The approach was to identify those sectors with decentralised functions as prescribed in the LG Act (schedule 2), which included: Agriculture, Education, Health, Social Development, Water and Environment, and Works and Transport.