The House considered and approved the proposed Shs72.3 trillion national budget for Financial Year 2025/2026 on May 15, 2025. PHOTO/ IBRAHIM KAVUMA
Lawmakers yesterday approved Uganda’s Shs72.3 trillion national budget for the 2025/2026 financial year, amid tight security deployment around the Parliamentary precincts.
The budget approval process, which lasted about seven hours, saw a slight increase from the Shs72.137 trillion allocated for the 2024/2025 financial year.
Presenting the report on the floor of Parliament, the Budget Committee vice chairperson, Mr Achia Remigio, said the resources will be mobilised from multiple sources, including Shs37.2 trillion from domestic sources.
Additionally, Shs2.08 trillion will come from grants and external loans, Shs11.38 trillion through domestic borrowing, Shs10 trillion for domestic debt refinancing, and Shs11.3 trillion from project support (grants and loans).
According to the budget allocations, the Human Capital Development programme takes the largest share at Shs11.4 trillion, followed by Governance and Security at Shs9.9 trillion. Integrated Transport Infrastructure and Services has been allocated Shs6.3 trillion, while Private Sector Development received Shs2.7 trillion and Agro-Industrialisation got Shs2.6 trillion.
The least funded programmes include Public Sector Transformation (Shs258.6 billion), Manufacturing (Shs311.8 billion), and Climate Change, Natural Resources, Environment and Water Management (Shs364.8 billion). Meanwhile, Shs28.5 trillion will go towards domestic debt refinancing (Shs10 trillion), domestic arrears (Shs1.4 trillion), interest payments (Shs11.3 trillion), and external debt repayments (Shs4.9 trillion).
Key priorities
Transport infrastructure is among the programmes that have taken a significant portion of the budget, with the construction of the Standard Gauge Railway receiving Shs2.1 trillion. In addition, Shs2.1 trillion will fund the construction, upgrade, and rehabilitation of national roads and bridges.
Some of the major road works include the Hoima-Wanseko Road (Shs185.47 billion), construction of 66 selected bridges (Shs30.61 billion), Rwenkunye-Apac-Lira-Acholibur Road (Shs166.25 billion), Kisoro-Nkuringo-Rubugiri-Muko Road (Shs1.2 trillion), Moyo-Yumbe-Koboko Road (Shs125.08 billion), and rehabilitation of the Mityana-Mubende Road (Shs21 billion).
The government also plans to upgrade the Kyenjojo-Kihura-Bwizi-Rwamwanja-Katunge/Mpara-Bwizi Road (Shs109.14 billion) and the Iganga-Bulopa-Ikumbya Road (Shs 42.55 billion). Shs91.78 billion has been earmarked for the rehabilitation of district, urban, and community access roads. In health, the government plans to spend Shs1 trillion through the Global Fund for TB, HIV/AIDS, and malaria. GAVI will support vaccine procurement and health sector development with Shs194.20 billion.
While Uganda’s Covid-19 response and emergency preparedness will receive Shs57.89 billion. Construction and equipping of the Uganda Heart Institute is allocated Shs65.65 billion, infrastructure development at Uganda Cancer Institute will get Shs42.14 billion, and Shs116.94 billion will go towards rehabilitating and constructing general hospitals. The government has allocated Shs30.75 billion for the establishment of regional oncology and diagnostic centres in Arua, Mbale, and Mbarara while Shs623.51 billion has been earmarked for the procurement of essential medicines and health supplies for health centres, regional, and national referral hospitals.
In the education sector, the government will spend Shs244.9 billion on the Uganda Secondary Education Expansion Project (Phase II), Shs12.87 billion on the Development of Primary Schools Project, and Shs54.44 billion on the funded Vocational Project (Phase II). Mr Remigio indicated that next year’s budget priorities will focus on three key areas, which are boosting household incomes and micro-enterprises, industrialisation and private sector development, and commercialisation of agriculture.
As a result, a total of Shs1 trillion has been allocated to the Parish Development Model (PDM) while Shs100 billion will support Emyooga Saccos, including Shs20 billion for teachers’ Saccos. The Microfinance Support Centre will receive Shs76.67 billion, with Shs30 billion for onward lending and Shs10 billion for special interest groups. Youth and women development programmes have also been funded, with Shs23.6 billion for the Uganda Women Entrepreneurship Programme (UWEP) and Youth Livelihood Programme.
Additionally, Shs231.3 billion has been allocated towards the GROW programme for women enterprises, Shs147.1 billion to Uganda Development Corporation, and Shs121.1 billion towards the Social Assistance Grants for Empowerment (SAGE), along with 16 billion in special grants for persons with disabilities. Cattle compensation for Acholi Sub-region has also been allocated Shs80 billion.
The energy, oil, and gas sector has been allocated Shs686.35 billion for midstream petroleum infrastructure, including the East African Crude Oil Pipeline (EACOP), resettlement houses, refinery development, and natural gas feasibility studies. The Karuma Hydroelectric Project will receive Shs34.14 billion, ORIO Mini Hydro and Rural Electricity Project Shs billion, rural electrification Shs165.29 billion, and Shs21.79 billion for the construction of high-voltage transmission lines and substations in Tororo and Ntinda.
Industrialisation and private sector development will receive a boost through Shs275 billion for SMEs under the Investment for Industrial Transformation and Employment (INVITE) programme. In governance and security, Shs450 billion has been earmarked for the election roadmap.
Reactions
Before the budget was approved, some lawmakers raised concerns that the government needed to address to ensure the taxpayers’ money is put to good use. The Leader of the Opposition in Parliament, Mr Joel Ssenyonyi, criticised the government for persistently neglecting the issue of domestic arrears, saying it contradicts the Buy Uganda, Build Uganda (BUBU) policy. Mr Ssenyonyi added that several businesses are collapsing because the government is not prioritising the payment of domestic arrears. He noted that the government has been dishing out huge sums of money to private entities as bailouts, instead of prioritising local contractors who have already provided services to the government. Mr Ssenyonyi pointed out that only Shs1.4 trillion has been allocated for the clearance of domestic arrears, an amount he says is insufficient given the scale of unpaid debts.
“If someone provides a service to you and you don’t pay them for one or even two years, what is that? That’s a debt,” he said. “We are giving free money to some companies like Atiak Sugar Factory on the grounds that they are collapsing, yet those who have actually rendered services to the government remain unpaid. Let us pay these people their money,” he said. The State minister of Finance, Mr Henry Musasizi, however, indicated that the government is almost completing its domestic arrears. “Domestic Arrears stood at Shs13 trillion in the Auditor General's report. We offset this amount, and the balance is Shs5.2 trillion. When we remove this year's budget of Shs1.4 trillion, we remain with Shs3.8 trillion that will be settled in the next 3 years,” Mr Musasizi explained.
Meanwhile, the Kira Municipality MP, Ibrahim Ssemujju Nganda, recommended that Parliament should not approve the budget until it is structured to deal with the country's socio-economic challenges. He indicated that the money for workshops and travel, among others, should be re-allocated to education, health, agriculture, and roads, but this was rejected by the majority after it was put to a vote. The Speaker of Parliament, Ms Anita Among, indicated that the budget will be read by the minister of Finance on June 12after the President delivers the State-of-Nation Address on June 5.
SOME OF THE PROGRAMMES (SHS)
• Human Capital Development- 11.4 trillion
•Governance & Security -9.9 trillion
•Transport infrastructure - 6.3 trillion
• Private Sector Development -2.7 trillion
•Agro-industrialisation- 1.8 trillion
•Legislation, oversight & re-
presentation- 1 trillion
•Administration of Justice- 598.9 billion
•Tourism Development-427.5 billion
• Environment & Water Ma-
nagement- 364.8 billion
•Domestic refinancing-10 trillion
•Interest payment-11.3 trillion
•External repayment 4.9 trillion
•Domestic arrears-1.4 trillion
