The study examined the effect of budgeting on education service delivery in local governments in Uganda, a case of Mbale District Local Government. The objectives of the reserach were; to explore the effect of budget planning, budget implementation and budget monitoring on education service delivery in Mbale District Local Government. Study employed a cross sectional study design and to arrive at empirical results, mixed approaches were used, thus triangulation, to arrive at the level of education service delivery in local governments, Mbale District Local Government in particular. The sample size of the research was 103 determined using the Krejcie and Morgan tables (1970). To validate the findings further, interviews, were administered. The findings of this study were analysed using SPSS v 20, and both descriptive and inferential statistics were generated to aid the analysis.