national 16 September 2026 Daily Monitor (Uganda)
Local Governments Tasked to Boost Revenue, Embrace Industrialization
Ugandan Minister of State for Finance, Amos Lugoloobi, has urged local governments to prioritize domestic revenue mobilization and invest in industrialization to reduce national borrowing and avoid a potential debt crisis. The push aligns with the government's strategic shift towards revenue-led fiscal consolidation for the 2027/2028 financial year. Source: https://www.monitor.co.ug/uganda/news/national/local-govs-told-to-boost-revenue-invest-in-industrialisation-5597202
Local governments across Uganda are being called upon to significantly enhance their efforts in collecting domestic revenue and to actively invest in industrialization initiatives. This directive comes from the Minister of State for Finance, Planning and Economic Development, Amos Lugoloobi, who emphasized its critical role in strengthening Uganda’s fiscal independence and reducing the nation’s reliance on borrowing.
During a regional budget consultative workshop in Lira City, Minister Lugoloobi outlined that the upcoming 2027/2028 financial year’s budget will be guided by seven strategic shifts, with revenue-led fiscal consolidation taking precedence. He stressed the importance of broadening the tax base, leveraging data and technology to minimize revenue leakages, and improving taxpayer compliance.
“We need to see more revenue coming into our coffers. The more revenue we get, the more we limit borrowing. We don’t need to continue borrowing endlessly,” Lugoloobi stated, highlighting the government’s objective to narrow the gap between revenue and expenditure with the ultimate aim of domestic revenue fully financing the national budget.
He cautioned local leaders against shying away from revenue collection due to fears of public backlash, reminding them that these locally collected taxes are essential for funding public services. The minister also highlighted the strategic management of oil revenue, ensuring transparency and sustainability in line with the Public Finance Management Act, with portions earmarked for infrastructure development and savings for future generations.
The push for industrialization, seen as a key avenue for expanding the tax base, occurs amidst a land dispute concerning a regional industrial park in Lira. Local authorities and business chambers have raised concerns over transparency and community engagement regarding the allocation of land intended for the park, with specific worries about a portion being handed over to investors without broad consultation. This situation underscores the complexities local governments face in balancing development goals with community interests and transparent land management.