{"id":6168,"date":"2019-11-21T12:03:42","date_gmt":"2019-11-21T12:03:42","guid":{"rendered":"http:\/\/consulting.loc\/budapest\/?page_id=6168"},"modified":"2025-10-25T18:26:39","modified_gmt":"2025-10-25T18:26:39","slug":"faq","status":"publish","type":"page","link":"https:\/\/lgfc.go.ug\/index.php\/faq\/","title":{"rendered":"FAQ"},"content":{"rendered":"\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t\t
\n\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t

FAQ<\/h2><\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t\t
\n\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t\t\t\t
\n\t\t\t\t\t\t\t
\n\t\t\t\t\t
\n\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/path><\/svg><\/span>\n\t\t\t\t\t\t\t\t<\/path><\/svg><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tWhat is the role of the Local Government Finance Commission (LGFC)?<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t

The LGFC is a constitutional body mandated to advise the President, on all matters concerning financing of Local Governments (LGs). It ensures fair, equitable, and transparent fiscal decentralization in Uganda by advising on revenue sharing, financial autonomy, and capacity enhancement of LGs.<\/p>\n<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t

\n\t\t\t\t\t
\n\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/path><\/svg><\/span>\n\t\t\t\t\t\t\t\t<\/path><\/svg><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tHow is LGFC established and under what legal framework does it operate?<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t

LGFC is established under Article 194 of the Constitution of the Republic of Uganda (1995) and operationalized by the Local Government Finance Commission Act, Cap 139. It derives its authority from these frameworks to function independently and provide fiscal advice to both the central and local governments.<\/p>\n<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t

\n\t\t\t\t\t
\n\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/path><\/svg><\/span>\n\t\t\t\t\t\t\t\t<\/path><\/svg><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tWhat are the main functions of LGFC?<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t

Key functions include:<\/p>\n

    \n
  • Advising on the formula for distributing grants to LGs.<\/li>\n
  • Evaluating fiscal performance and financing needs of LGs.<\/li>\n
  • Reviewing the financial autonomy and resource mobilization capacity of LGs.<\/li>\n
  • Monitoring and reporting on the financial flow to local governments.<\/li>\n
  • Advising on revenue harmonization between central and local governments.<\/li>\n<\/ul>\n<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t
    \n\t\t\t\t\t
    \n\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/path><\/svg><\/span>\n\t\t\t\t\t\t\t\t<\/path><\/svg><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tHow does LGFC determine the formula for inter-governmental transfers?<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t

    LGFC uses a consultative, evidence-based process that includes:<\/p>\n

      \n
    • \u00a0Assessing the expenditure needs and revenue capacities of LGs.<\/li>\n
    • Using indicators such as population size, poverty levels, service delivery gaps, and
      geographic factors.<\/li>\n
    • Engaging stakeholders, including the Ministry of Finance, Office of the Prime Minister,
      Ministry of Local Government, and LG associations.<\/li>\n<\/ul>\n<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t
      \n\t\t\t\t\t
      \n\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/path><\/svg><\/span>\n\t\t\t\t\t\t\t\t<\/path><\/svg><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tWhich local government entities benefit from LGFC\u2019s work?<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t

      All Districts, Cities, Municipalities, Town Councils, and Sub-counties across Uganda benefit from LGFC\u2019s recommendations, particularly in the allocation of unconditional, conditional, and equalization grants.<\/p>\n

        \n
      • \u00a0Assessing the expenditure needs and revenue capacities of LGs.<\/li>\n
      • Using indicators such as population size, poverty levels, service delivery gaps, and
        geographic factors.<\/li>\n
      • Engaging stakeholders, including the Ministry of Finance, Office of the Prime Minister,
        Ministry of Local Government, and LG associations.<\/li>\n<\/ul>\n<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t
        \n\t\t\t\t\t
        \n\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/path><\/svg><\/span>\n\t\t\t\t\t\t\t\t<\/path><\/svg><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tHow does LGFC support local governments to improve their financial management capacity?<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t

        LGFC conducts:<\/p>\n

          \n
        • Training workshops and technical backstopping.<\/li>\n
        • Research and policy guidance on fiscal decentralization.<\/li>\n
        • Development of manuals, templates, and tools for budgeting and planning.<\/li>\n
        • Collaborations with institutions like MoLG, MoFPED, and Uganda Local Government
          Association (ULGA).<\/li>\n<\/ul>\n
            \n
          • \u00a0Assessing the expenditure needs and revenue capacities of LGs.<\/li>\n
          • Using indicators such as population size, poverty levels, service delivery gaps, and
            geographic factors.<\/li>\n
          • Engaging stakeholders, including the Ministry of Finance, Office of the Prime Minister,
            Ministry of Local Government, and LG associations.<\/li>\n<\/ul>\n<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t
            \n\t\t\t\t\t
            \n\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/path><\/svg><\/span>\n\t\t\t\t\t\t\t\t<\/path><\/svg><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tWhat is the Equalization Grant and how is it allocated?<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t

            The Equalization Grant is a constitutional grant aimed at supporting least developed LGs to
            provide minimum public services. LGFC identifies eligible LGs based on development indices
            (e.g., poverty rate, infrastructure deficit), and allocates funds accordingly using a formula
            approved by Cabinet.<\/p>\n<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t

            \n\t\t\t\t\t
            \n\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/path><\/svg><\/span>\n\t\t\t\t\t\t\t\t<\/path><\/svg><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tHow can citizens or stakeholders engage with LGFC?<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t

            Stakeholders can engage via:\u00a0<\/p>\n

              \n
            • Public consultations and budget dialogues.<\/li>\n
            • Accessing reports and data through LGFC\u2019s official website. (https:\/\/lgfc.go.ug)<\/li>\n
            • Submitting inquiries, petitions, or feedback through LGFC\u2019s contact channels.<\/li>\n
            • \u00a0Participating in research, capacity building, or development partner forums facilitated by
              LGFC.<\/li>\n<\/ul>\n<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t
              \n\t\t\t\t\t
              \n\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/path><\/svg><\/span>\n\t\t\t\t\t\t\t\t<\/path><\/svg><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tWhere does LGFC get its funding?<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t

              LGFC is funded through:<\/p>\n

                \n
              • Government of Uganda budget allocations under the Ministry of Finance.<\/li>\n
              • \u00a0Development partner support for special programs (e.g., World Bank, UNDP).<\/li>\n
              • \u00a0Collaborations with regional and international agencies on fiscal decentralization.<\/li>\n<\/ul>\n<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t
                \n\t\t\t\t\t
                \n\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/path><\/svg><\/span>\n\t\t\t\t\t\t\t\t<\/path><\/svg><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tHow does LGFC ensure transparency and accountability in its work?<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t

                LGFC adheres to:<\/p>\n

                  \n
                • Annual reporting to Parliament and Ministry of Finance.<\/li>\n
                • External audits by the Office of the Auditor General.<\/li>\n
                • Open publication of grant formulas, allocations, and research findings.<\/li>\n
                • \u00a0Engagement with civil society, media, and academic institutions.<\/li>\n<\/ul>\n<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t
                  \n\t\t\t\t\t
                  \n\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/path><\/svg><\/span>\n\t\t\t\t\t\t\t\t<\/path><\/svg><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tWhat is LGFC\u2019s relationship with other government institutions?<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t

                  LGFC collaborates closely with:<\/p>\n

                    \n
                  • \u00a0MoFPED \u2013 on fiscal policy and grant allocations.<\/li>\n
                  • \u00a0Ministry of Local Government \u2013 on local government operations and performance.<\/li>\n
                  • National Planning Authority \u2013 on national development planning.<\/li>\n
                  • \u00a0Office of the Prime Minister \u2013 on service delivery monitoring and reporting.<\/li>\n<\/ul>\n<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t
                    \n\t\t\t\t\t
                    \n\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/path><\/svg><\/span>\n\t\t\t\t\t\t\t\t<\/path><\/svg><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tHow can I access LGFC publications and reports?<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t

                    All official reports, research papers, and strategic documents are available on the LGFC
                    website: [Insert URL]. Physical copies can also be accessed at LGFC headquarters or through
                    official requests.<\/p>\n<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t

                    \n\t\t\t\t\t
                    \n\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/path><\/svg><\/span>\n\t\t\t\t\t\t\t\t<\/path><\/svg><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tCan LGFC help my district get more funds?<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t

                    LGFC does not directly allocate funds but advises the central government on formulas and
                    criteria. If a district demonstrates higher needs or performance gaps, LGFC may recommend
                    adjustments through its annual reviews and consultations.<\/p>\n<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"

                    FAQ What is the role of the Local Government Finance Commission (LGFC)? The LGFC is a constitutional body mandated to advise the President, on all matters concerning financing of Local Governments (LGs). It ensures fair, equitable, and transparent fiscal decentralization in Uganda by advising on revenue sharing, financial autonomy, and capacity enhancement of LGs. How<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"footnotes":""},"class_list":["post-6168","page","type-page","status-publish","hentry"],"_links":{"self":[{"href":"https:\/\/lgfc.go.ug\/index.php\/wp-json\/wp\/v2\/pages\/6168","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lgfc.go.ug\/index.php\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/lgfc.go.ug\/index.php\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/lgfc.go.ug\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/lgfc.go.ug\/index.php\/wp-json\/wp\/v2\/comments?post=6168"}],"version-history":[{"count":16,"href":"https:\/\/lgfc.go.ug\/index.php\/wp-json\/wp\/v2\/pages\/6168\/revisions"}],"predecessor-version":[{"id":7512,"href":"https:\/\/lgfc.go.ug\/index.php\/wp-json\/wp\/v2\/pages\/6168\/revisions\/7512"}],"wp:attachment":[{"href":"https:\/\/lgfc.go.ug\/index.php\/wp-json\/wp\/v2\/media?parent=6168"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}