New Phase of Local Government Funding Takes Shape

Kp Reporter·National·

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New Phase of Local Government Funding Takes Shape

The World Bank has started a review of two major government reform programmes aimed at improving service delivery in Uganda. The Ministry of Finance said...

The World Bank has started a review of two major government reform programmes aimed at improving service delivery in Uganda.

The Ministry of Finance said on Monday, March 2, that the Bank has launched an Implementation Completion and Results Report mission for the Uganda Intergovernmental Fiscal Transfers Programme for Results, also known as UGIFT 1.0, and the Public Investment Management Plus programme, commonly called PIM Plus.

An Implementation Completion and Results Report is a final review carried out at the end of a project. It checks what was achieved, what worked well and what lessons were learnt.

UGIFT is a programme that sends funds from the central government to local governments to improve services such as schools, health centres and water systems. The ministry said UGIFT continues to play a key role in strengthening how these services are financed and delivered.

UGIFT 1.0 officially closed on December 31, 2025. The review will assess its achievements and guide the design of a new phase, UGIFT 2.0.

PIM Plus focuses on improving how government plans and manages public investments such as roads, hospitals and other infrastructure. It aims to ensure projects are well prepared, cost-effective and completed on time.

Speaking at the opening meeting, Acting Director Budget Hannington Ashaba said the two programmes are part of wider reforms under the Public Finance Management Reform Strategy 2025–2030. He said both aim to improve service delivery in a lasting way.

“I wish to emphasize that Local Governments are the ultimate beneficiaries and implementers of these reforms. Their perspectives, experiences and concerns must continue to be carefully listened to and duly considered,” said Ashaba.

On behalf of the World Bank, Barbara Magezi urged the government to complete all activities started under UGIFT 1.0. She said the Bank also wants to understand how the 2026/27 financial year budget is structured to sustain the gains made.

Magezi said UGIFT 2.0 will focus on human capital development, especially job creation and local economic development.

The mission is expected to shape the next phase of reforms aimed at improving public spending and service delivery across the country.

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