Fiscal Decentralization and Local Government Service Delivery in Uganda: A Critical Review of Financial Autonomy, Central Government Transfers and Accountability

Fiscal decentralization is expected to align public expenditure with local needs, yet the existence of local budgets does not demonstrate meaningful financial autonomy or effective services. This article critically reviews the relationship between financial autonomy, central government transfers and accountability in Uganda. It uses a structured narrative review of selected scholarly literature, legislation and official fiscal documents rather than an original household survey or a systematic review with exhaustive coverage. Descriptive graphs examine the nominal transfer trend and annual changes published by the Local Government Finance Commission. The review finds that resource volume, spending discretion, release predictability and institutional capacity are analytically distinct. A larger transfer envelope may expand local activity while leaving priority setting highly constrained. Accountability arrangements are most useful when information reaches actors with the authority and incentives to correct problems. Neither expenditure absorption nor a favourable administrative score independently proves improved citizen experience. The article proposes an integrated framework connecting financing conditions to implementation and service outcomes, moderated by accountability and administrative capacity. It recommends transparent grant classifications, predictable releases, protected maintenance, credible revenue administration and service-based performance measures. Its principal conclusion is that Uganda's decentralization should be assessed through the alignment of functions, usable resources and enforceable responsibility rather than through transfer growth alone.