Annual Negotiations between Local Governments and Central Governments for Grants transfer for FY 2023/2024

Ag.Commission Secretary, Mr. Adam Babale and PFA Grants Chair the Negotiations

Ministry of Education and sports Team

Uganda Local Government Negotiation Team (UNAT)

The Local Governments together with sector ministries have begun a one week annual sector conditional grants negotiation for the grants  to be transferred in the FY 2023/2024 and followup of agreed undertaking for FY 2022/2023. The negotiations are provided for in the article 193(3) of the 1995 Uganda Constitution and the Local Government Act CAP 243. It requires Central Government to agree with the Local Governments on programs and conditions attached on a program and these conditional grants resonate with the National Development Plan.The outcome of these negotiations inform the ministerial policies that guide programme implementation in the local governments.

The negotiation is facilitated by the Local Government Finance Commission as provided by the Local Government Finance Commission Act 2003.The negotiation was also attended by line ministries of Local Government,Finance,Planning and Economic Development,Public Service and National Planning Authority.

The mid term review carried out in may 2022 by LGFC.  It was revealed that out of the 457 undertakings agreed upon , 282 were implemented representing a 62% performance which was quite wanting.

They also noted an increase in financing of local Governments from 2,361.4bn in FY 2015/16 (12.9%) to Ushs 5,864.8bn in FY 2022/23 (15.9%)