Parliament Approves UGX 72.4 Trillion Budget Amid Opposition Criticism

By Spy Uganda

Parliament on Thursday approved Uganda’s UGX 72.376 trillion national budget for the 2025/26 financial year, a move the opposition has described as a rubber stamp by the majority, despite glaring loopholes in the estimates.

Presenting the Budget Committee’s report, Deputy Chairperson Achia Remegio said the resource envelope includes a projected UGX 34.051 trillion (47%) to be raised from domestic revenue collections by the Uganda Revenue Authority (URA). The government also plans to borrow UGX 21.409 trillion (29.5%) from domestic sources and UGX 10.666 trillion (14.7%) from external lenders. An additional UGX 3.246 trillion (4.4%) is expected from non-tax revenue, while grants are projected at UGX 2.745 trillion (3.7%).

Compared to the UGX 57.440 trillion proposed in the Budget Framework Paper (BFP) last December, the approved budget has increased by UGX 14.936 trillion.

According to the breakdown, UGX 29.527 trillion (38.5%) has been allocated to development plan implementation, while UGX 11.422 trillion (17.4%) will go to human capital development. Governance and security will receive UGX 9.945 trillion (13.1%), followed by integrated transport infrastructure and services at UGX 6.381 trillion (11.1%).

Other notable allocations include:

• UGX 2.704 trillion for private sector development

• UGX 1.857 trillion for agro-industrialisation

• UGX 1.610 trillion for regional balanced development

• UGX 1.527 trillion for sustainable urbanisation and housing

• UGX 1.034 trillion for sustainable energy development

• UGX 1.030 trillion for the Parliamentary Commission

Additional appropriations include:

• UGX 311.8 billion for manufacturing

• UGX 427.6 billion for tourism development

• UGX 364.9 billion for natural resources, environment, climate change, land and water management

• UGX 381.1 billion for digital transformation

• UGX 388.2 billion for innovation and technology transfer

• UGX 875.8 billion for the extractives industry

• UGX 599 billion for the administration of justice

• UGX 258.6 billion for public sector transformation

However, Shadow Finance Minister Ibrahim Ssemujju Nganda’s proposal to reallocate funds from what he termed “nugatory expenditure” to critical sectors like health, education, and road infrastructure was rejected.

Among the allocations he sought to cut were:

• UGX 976.9 billion for inland travel

• UGX 633.2 billion for consultancy services

• UGX 492.9 billion for food and drinks

• UGX 450 billion for fuel

• UGX 296.8 billion for workshops and seminars

• UGX 168.5 billion for donations

• UGX 142.4 billion for bedding, clothing, and footwear

• UGX 171.8 billion for vehicle maintenance

Ssemujju also questioned the continued government financing of private entities, citing UGX 446 billion allocated to the Lubowa Super Specialised Hospital, UGX 60 billion to Roko Construction Company, and UGX 14 billion to help the Mufti of Uganda, Sheikh Ramadhan Mubaje, clear personal debts.

He criticised the ongoing funding of the Lubowa project, which is being implemented by Italian investor Enrica Pinetti, despite minimal progress.

“The UGX 465 billion will be deposited into an escrow account accessible only by Aristidina Pinetti. Remember, she was recently allocated UGX 298 billion under a supplementary request passed just two months ago. In total, Pinetti has now received UGX 1.239 trillion for Lubowa,” Ssemujju noted.

In response to MPs’ concerns about oversight of the Lubowa project, Speaker Anita Among pledged to visit the site soon alongside Leader of the Opposition Joel Ssenyonyi, who was previously denied access.

Several MPs raised concerns over the exclusion of key priorities in the budget. Robert Kasolo (Iki-Iki County, Budaka) lamented the exclusion of Bukedi sub-region from the cattle compensation allocation, which only covered Teso, Lango, and Acholi sub-regions.

Dr. Francis Ayume (Koboko Municipality) decried the failure to allocate UGX 5 billion needed to operationalise organ transplants in Uganda, despite the passage of the Uganda Human Organ Donation and Transplant Act in 2023.

“We have a backlog of 120 kidney transplant cases. Mulago and Nsambya hospitals are ready, but there’s no funding,” Ayume said.

LOP Ssenyonyi also criticised the stalled construction of the new Parliamentary chambers, despite continued funding for Roko Construction Company.

“Whenever there are contentious issues, this chamber overflows. Meanwhile, Parliament continues to spend billions annually on office rentals. Roko has failed to deliver. We need an update on this project,” he said.

Speaker Among directed State Minister for Finance (General Duties), Henry Musasizi, to present a progress report on the new chambers to Parliament on Tuesday next week.

Commenting on the passage of the budget, Musasizi praised Parliament for its cooperation in reconciling the figures, noting that the national budget process spans nine months.

“I thank the Speaker for guiding this process and the President for his leadership throughout,” he said.

President Yoweri Museveni is scheduled to open the Fifth Session of the 11th Parliament on June 5 with the State of the Nation Address, while the Minister of Finance will deliver the national budget speech on June 12.