1. Analysis of the National Budget Estimates FY 2023/24: Budget Lines for Local Government Mandates under Central Government MDAs and Proposals for Re-Allocation
- Author:
- Daniel Lukwago
- Publication Date:
- 01-2023
- Content Type:
- Research Paper
- Institution:
- Advocates Coalition for Development and Environment (ACODE)
- Abstract:
- To enable Local Governments (LGs) to provide services to the citizens, the Central Government (CG) of Uganda is required to provide them grants in the form of unconditional, conditional and equalisation. However, over the last decade, there has been a decline in the share of transfers from CG to LGs. The share of the national budget allocated to LG programmes has reduced from 22 per cent in FY 2010/11 to 13 per cent in FY 2015/16 and fell further to 9.8 per cent in FY 2023/14. The decline is largely attributed to recentralization of functions and resources which by law are mandated under LGs. A study by ACODE in 2020, which was a follow-up study, found that despite recommendations of the 2019 study, the allocation of funds meant for LGs to Central Government Ministries Departments and Agencies n(MDAs) had not only persisted, but the absolute amounts as well as the proportion of the budget being retained at the CG had increased. The total amount retained at CG MDAs had grown to UGX 1.32 trillion in FY2020/21 from UGX 1.066 trillion in FY 2019/20. Consequently, with funding from the Royal Danish Embassy (RDE), ACODE commissioned this follow-up study to examine the approved national budget estimates for FY 2023/24 to identify budget lines for devolved services under CG MDAs. The study extensively reviewed all relevant budget documents, focusing mainly on the approved estimates of revenue and expenditure (recurrent and development) FY 2023/24. The study analysed ten programmes with decentralised functions as prescribed in the Local Government Act, CAP 243 (second Schedule) and identified funds retained by the CG MDAs, yet they are mandated for LGs. The programmes analysed were Agro-Industralisation; Natural Resources, Environment, Climate Change, Land and Water Management; Private Sector Development; Integrated Transport Infrastructure and Services; Sustainable Urbanization and Housing; Human Capital Development, Community Mobilization and Mindset Change Regional Development; Public Sector Transformation and Tourism Development.
- Topic:
- Budget, Decentralization, Assessment, and Local Government
- Political Geography:
- Uganda and Africa