In recent years, most Sub-Saharan African countries have been involved in comprehensive reforms of their public administrative systems, focusing on decentralization as a major tool to improve efficiency in public service delivery and strengthen involvement of citizens in decision-making processes.1 Uganda has made a fundamental change in the organization of the public sector and the system of service delivery by embarking on radical decentralization.
This chapter provides a broad overview of the system of local government finance in Uganda. It briefly describes the structure of local government, expenditure and revenue assignments, overall system of local government finance, experiences with revenue mobilization, and intergovernmental fiscal relations, includingtransfer systems. It outlines some key lessons learned from fiscal decentralization from 1994 to 2004. Uganda’s decentralization represents a radical reengineering of the mechanisms of governance toward political, administrative, and fiscal devolution of power. It happened quickly and with strong political commitment from the top. Strong political belief in decentralization as a way to involve and get political support from the people (particularly in rural areas) and as a means to ensure more efficient service delivery—combined with the failure of the previous
In recent years, most Sub-Saharan African countries have been involved in comprehensive reforms of their public administrative systems, focusing on decentralization as a major tool to improve efficiency in public service delivery and strengthen involvement of citizens in decision-making processes.1 Uganda has made a fundamental change in the organization of the public sector and the system of service delivery by embarking on radical decentralization.This chapter provides a broad overview of the system of local government finance in Uganda. It briefly describes the structure of local government, expenditure and revenue assignments, overall system of local government finance, experiences with revenue mobilization, and intergovernmental fiscal relations, includingtransfer systems. It outlines some key lessons learned from fiscal decentralization from 1994 to 2004. Uganda’s decentralization represents a radical reengineering of the mechanisms of governance toward political, administrative, and fiscal devolution of power. It happened quickly and with strong political commitment from the top. Strong political belief in decentralization as a way to involve and get political support from the people (particularly in rural areas) and as a means to ensure more efficient service delivery—combined with the failure of the previous
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