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This study was designed to explore resource allocation as a strategy for poverty alleviation using the counties of Igara and Sheema in Bushenyi District as a study case. The study targeted 382 residents, 52 officials; 40 development partners (Non Governmental Organizations) and 12 District sector heads. A research design was employed. The findings revealed that the policies used during resource allocation include the Local Government Act 1997, Universal Primary Education, Primary Health Care, National Agricultural Advisory Services, The National Budget and Operations Maintenance Policy. It was concluded that there exists resource allocation and it has a relationship with poverty alleviation. Also the conduct of some officials involved in resource allocation is unprofessional. To enable informed decisions in resource allocation, the paper recommends that extensive studies be conducted to determine the nature of poverty and consultations made with locals in determining policy. Corrupt officials in the process of resource allocation should be identified and disciplined to deter others.