WHAT WE DO
The functions of the Commission as spelt out in article 194 of the Constitution and elaborated in section 77 of the Local Governments Act, 1997 are to:
Advise the President on all matters concerning the distribution of revenue between the Government and local governments and the allocation to each local government of money out of the Consolidated Fund.
Consider and recommend, in consultation with the National Planning Authority, to the President the amount to be allocated as equalisation and conditional grants and their allocation to each local government.
Consider and recommend to the President potential sources of revenue for local governments.
Advise the local governments on appropriate tax levels to be levied by local governments.
Deal with disputes between local governments over financial matters and tender advice relating thereto to the parties involved, the Minister and the Minister responsible for Finance as may be necessary.
Monitor local governments’ budgets to ensure that they don’t significantly detract from priority programme areas; where budgets detract from PPA, the LGFC is to inform the council and the President through the Minister for appropriate action.
Perform such other functions as Parliament may prescribe.
Hon.Isaac Isanga Musumba
Chairperson 7th Commission
WELCOME
I take this opportunity to warmly welcome you to the Local Government Finance Commission (LGFC) Uganda website. It is our expectation that you will find this website useful in providing information relating, particularly, to fiscal decentralisation and local government finance in Uganda.
Fiscal decentralisation (intergovernmental fiscal relations), and local government finance generally, is the lifeblood to any decentralisation programme. In Uganda, which has adopted decentralisation as the bedrock of local governance, it becomes imperative that the fiscal arrangements intended to actualise the programme are not only properly crafted but should as well be constantly monitored and appropriately guided to achieve improved service delivery within the context of poverty eradication goals and promote sustainable development.
The Local Government Finance Commission is mandated under the Constitution of Uganda (1995) and the Local Government Finance Commission Act (2003) to advise the President on all matters regarding transfer of resources from the central government to local governments (and allocation to each local government) and to advise local governments on matters relating to revenue from sources devolved to them (local governments).
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