This study entitled budgetary financing and service delivery, a case study of Kayunga district was carried out which had the following objectives to find out the relationship between borrowing and service delivery in Kayunga Local government, to find out the relationship between local revenue collection and service delivery in Kayunga local government and lastly to find out the relationship between Government transfers and service delivery among local governments in Uganda. The study covered the last 2 financial years that is 2021/2022 and 2022/2023. The results also show that most funding is from central government in term of conditional, unconditional and equalization grants however manager have to co-ordinate /follow for the released so that what is planned and approved is implemented however local revenue should be mobilized by political leaders especially the trading license, hotel tax and local service tax to increased contribution of local revenue in implementation of decentralized services. The study confirmed that, financial mobilization had not been efficiently utilized, the central government does not even release 100% of the allocated IPFs (Indicative Planning Figures) and there has always been revenue shortfall at the end of each financial year hence some activities are not implemented due to that, this partly contributed to low level of service delivery. Central government should reintroduce G-tax so that revenue based for local government increased; when community contribute towards service delivery the make government accountable hence improved service delivery.