Unconditional grant to local governments (Article 193)

Seventh Schedule

Unconditional grant is the minimum amount to be paid to the local governments to run the decentralised services.

Calculation Method

For a given fiscal year, this amount is equal to the amount paid to local governments in the preceding fiscal year for the same items adjusted for general price changes plus or minus the budgeted cost of running added or subtracted services; calculated in accordance with the following formula—

Y₁ = Y₀ + bY₀ + X₁ = (1+b)Y₀ + X₁

Y₁is the minimum unconditional grant for the current fiscal year

Y₀is the minimum unconditional grant in the preceding fiscal year

bis the percentage change, if any, in the general price levels in the preceding fiscal year

X₁is the net change in the budgeted cost of running added and subtracted services in the current year

Note that the unconditional grant is equal to the sum of wage and non-wage components. Therefore, the wage components should be adjusted for the wage increase, if any, while the non-wage component is adjusted for the changes in the general price levels.

For the purposes of this formula the current fiscal year shall be taken to commence with fiscal year 1995/96.

Revisers' Notes

•Articles 89, 97 and 257A (now 258) were amended by the Constitution (Amendment) Act, 2000, Act 13 of 2000 which was declared null and void by the Supreme Court in Ssemogerere and Others v Attorney General, Constitutional Appeal No. 1 of 2002.
•Article 80(4) was found inconsistent with Article 1(4) and 21(1) in the case of Kwizera Eddie v Attorney General, Constitutional Petition No. 20 of 2006.

PrevSchedule 6

ConstitutionLawsOfficials