The Ministry of Local Government has presented a Shs7.498 trillion budget for the 2026/2027 financial year to Parliament, marking a 17.3% increase from the previous allocation.
Presenting the budget, Minister Raphael Magyezi said the proposed funding reflects the government’s commitment to strengthening decentralization and improving service delivery across the country.
“Of the Shs7.498 trillion, Shs319.418 billion is allocated to the ministry headquarters, Shs22.200 billion to the Local Government Finance Commission, and Shs7.165 trillion to local governments,” Magyezi told the parliamentary committee on Local Government and Public Service.
The budget provides for several key expenditures, including Shs47 billion for the procurement of vehicles for Chief Administrative Officers and city clerks, Shs25 billion for the National Oil Seed Project, and Shs3 billion for the development of a market vendor management system.
Additional allocations include Shs13.2 billion for the induction of newly elected leaders, Shs6.7 billion for monitoring government projects, and Shs6.6 billion for staff gratuity payments.
Despite the increase, the ministry raised concerns over several unfunded priorities. These include Shs25 billion for the construction of new headquarters for displaced sub-counties, Shs7 billion for urban planning initiatives, and Shs2.9 billion to support local government public accounts committees.
Permanent Secretary Ben Kumumanya noted that the funding gaps could affect service delivery.
“The ministry is concerned that some critical priorities have not been funded,” he said.