A district which does not wish or is not able to enter into a cooperation arrangement to form a regional government shall be paid an equalisation grant.

The equalisation grant payable under clause (1) shall be based on the incremental costs met by the Central Government in managing the regional government.

The President shall cause to be presented to Parliament, proposals for the money to be paid out of the Consolidated Fund as equalisation grants under clause (1).

The proposals made under clause (3) shall be made at the same time as the estimates of revenue and expenditure under Article 155 of this Constitution and shall state the sums of money that are to be paid to each district.

Article 178A mandates equalization grants for districts not joining regional governments, ensuring financial balance and government support.

 Grants for districts not forming regional governments

Article 155

Two or more districts may cooperate to form a regional government to perform the functions and services specified in the Fifth Schedule to this Constitution.

Article 178A Clause 1

Subject to clause (1) and to the provisions of this Constitution, the districts of the regions of Buganda, Bunyoro, Busoga, Acholi and Lango, specified in the First Schedule to this Constitution, shall be deemed to have agreed to form regional governments for the purposes of this Article.

Constitution of Uganda / Article 178A Grants for districts not forming regional governments

Principles and structures of local government

178A. Grants for districts not forming regional governments