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Uganda - Intergovernmental Fiscal Transfers Program Project (English)

The objective of the Intergovernmental Fiscal Transfers Program Project for Uganda is to improve the adequacy and equity of fiscal transfers and improve fiscal management of resources by Local Governments for health and education services. Uganda has performed well in terms of economic growth and poverty reduction over the last decades, despite a recent slowdown. Uganda is a low-income country with gross domestic product (GDP) per capita of US$600 (2016). GDP growth has averaged more than 6 percent for the past 20 years. This growth can be attributed to macroeconomic stability, post-conflict rebound and pro-market reforms. This growth benefitted the poorest households, and during the last decade, Uganda managed to reduce the proportion of households living under international extreme poverty line faster than any other country in Sub-Saharan Africa (SSA). More recently the rate of economic expansion decelerated from an average of 7.6 percent a year during FY06-FY10 to 5.5 percent from FY11-FY15. This is because of external factors, inconsistent fiscal and monetary policies, a slowdown in the efforts by the Government to implement further reforms and low domestic revenue collection, which have created fiscal constraints for the Government. These constraints might ease when Uganda begins exporting oil, but the timing of this is uncertain. The Uganda Intergovernmental Fiscal Transfer Program (UgIFT) has high strategic relevance because it will address the binding constraint of low and inequitable levels of funding for health and education at the local level. The UgIFT Program is based on a premise that improved local government financing of education and health services is a necessary condition for improved outcomes, but it needs to be complemented with sustained policy improvements and investment in health and educations sectors. Funding levels for social services in most local governments (LGs) are too low to achieve improvements in outcomes. Specifically, the program addresses three constraints that have a major adverse impact on service delivery: (a) the large-scale horizontal inequities in the per capita amounts of transfers received by the LGs; (b) the inadequate level of per capita social expenditures in poorer LGs; and (c) the poor fiscal management of resources by LGs.

Details

  • Document Date

    2017/06/06

  • Document Type

    Project Appraisal Document

  • Report Number

    114260

  • Volume No

    1

  • Total Volume(s)

    1

  • Country

    Uganda,

  • Region

    Africa,

  • Disclosure Date

    2017/06/29

  • Disclosure Status

    Disclosed

  • Board Meeting Date

    2017-06-27T00:00:00Z

  • Doc Name

    Uganda - Intergovernmental Fiscal Transfers Program Project

  • Keywords

    Environmental and Social Systems Assessment;Environmental and Social Management Plan;Local Government Management and Service Delivery;free universal primary education;education and health;information and communication technology;violence against child;local government service delivery;fiscal transfer;vocational education and training;real per capita term;decentralization of service delivery;population living in poverty;access to reproductive health;management of service delivery;public expenditure on health;vulnerability to climate change;gender based violence;Economic Growth and Planning;financing of service delivery;intergovernmental fiscal transfer;education service;performance assessment;Education Services;service delivery performance;grant allocation;development grants;fiscal management;health facility;extreme poverty line;local government financing;fund for health;ministries of health;national poverty line;construction of school;allocation of fund;formula based transfer;cost of administer;disbursement linked indicators;management of health;consumer price index;exchange rate;Exchange Rates;provision of health;improved service delivery;purposes of section;category of health;locally raised revenue;local government department;share of resource;international poverty line;public sector employment;per capita allocation;access to health;process of decentralization;health sector development;distribution of resource;rule based systems;Performance and Accountability;increase in income;domestic revenue collection;gross domestic product;gross enrollment rate;water and environment;total public spending;children per woman;civil service staff;transfers to individual;rapid population growth;changing government priorities;local government capacity;basic education service;per capita cost;disparities in health;public health facility;primary school teacher;fiscal transfer system;local government administration;local government system;public health activity;degree of authority;system of performance;

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Citation

Uganda - Intergovernmental Fiscal Transfers Program Project (English). Washington, D.C. : World Bank Group. http://documents.worldbank.org/curated/en/697291498788132920/Uganda-Intergovernmental-Fiscal-Transfers-Program-Project