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The National Budget 2010/2011: Implications for the Local Governments

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UGANDA LOCAL GOVERNMENTS ASSOCIATION (ULGA)

THE NATIONAL BUDGET 2010/2011: IMPLICATIONS FOR THE LOCAL GOVERNMENTS

A Presentation by the Ag. Secretary General ULGA, to the State of Nation Platform

2 July 2010

1. INTRODUCTION:

The National Budget was presented to the nation by the Minister of Finance, Planning and Economic Development, Hon. Syda Bbumba on Thursday 10th June 2010. ULGA as the representative body for the local governments is carrying out a detailed analysis of the budget. Below are some of the critical issues to note:

2. OVERALL BUDGET PRIORITIES:

In line with the National Development Plan (NDP)2010-2015, whose theme is “Growth, Employment and Socio Economic Transformation for Prosperity”.

The Budget this year focuses on the following priorities:

• Infrastructure development in roads and energy.

• Promotion of science, technology and innovation to facilitate value addition and employment.

• Enhancing agricultural production and productivity.

• Private sector development and

• Improving public service delivery.

Suffice to note that Decentralization remains the key policy of the NRM Government in implementing the NDP. The spending in local governments is largely aligned to government priorities of Education, Health, Agriculture, Transport, Water and Good Governance. As such, financing the local governments is imperative for government to realise its priorities as given in the budget.

3. TRANSFERS TO DISTRICTS AND OTHER LOCAL GOVERNMENTS:

Transfers to Local Governments are estimated at Ushs1.474 billion in Fiscal Year 2010/11, accounting for 20% of total Government expenditure. Of this, only Ushs376 billion (5.2% of total budget or 25.0% of the total Local Government transfer)

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