State Minister for Finance Henry Musasizi tables the 2025/26 financial year budget estimates in Parliament on March 27, 2025. PHOTO/COURTESY
The minister attributes the budget rise to key allocations directed towards, among others, the forthcoming elections and Uganda’s participation in the Africa Cup of Nations.
Legislators, especially those from the Opposition, were yesterday left in shock after the State Minister for Finance, Mr Henry Musasizi, tabled the 2025/2026 financial year budget estimates, revealing a sharp increase to Shs71.9 trillion from the earlier Shs57.4 trillion.
Mr Musasizi attributed the budget rise to key allocations directed towards the forthcoming elections, health, education, and Uganda’s participation in the Africa Cup of Nations (AFCON).
“In the budget, we have attended to crucial issues that were raised by the Cabinet, Parliament, and the NRM parliamentary caucus,” he said.
“We have also addressed other critical policy commitments mainly in domestic arrears, agriculture, health, education (including AFCON 2027), the Electoral Commission and the General Election roadmap, as well as the wage shortfalls in local government,” Mr Musasizi added.
Deputy Speaker of Parliament referred the estimates to the Budget Committee without allowing further debate and directed them to report back by April 9.
Ministry explains
In an interview with Monitor, the Acting Director of Budget at the Ministry of Finance, Mr Hannington Ashaba, said more funds have been allocated to the Electoral Commission as well as other election-related activities, including identity cards and security.
According to him, the Electoral Commission (EC) has been allocated Shs450 billion, which was not in the initial budget estimates.
Other entities that have benefited from election-related activities include the National Identification & Registration Authority (NIRA), which has been allocated Shs209 billion for purchasing identity card machines and procuring blank IDs.
At the moment, all Ugandans’ identity cards have expired, and the government has yet to renew them after extending the mass renewal exercise for one year.
Security agencies, including the Uganda Police, Prisons, and UPDF, have been allocated Shs808 billion for election-related activities, among other internal necessities.
This is in addition to the Shs7.5 trillion initially allocated to governance and security in the Shs57.4 trillion budget, pushing the total allocation for this sector to Shs8.3 trillion. This makes it the second-highest funded sector after human capital, which stands at Shs9.9 trillion.
Mr Ashaba indicated that an additional Shs1.4 trillion has been allocated to arrears, which had initially received only Shs200 billion.
AFCON has been allocated Shs596 billion towards the construction of two additional stadiums, alongside the renovation of Namboole and training faciities at Makerere University and Kyambogo University.
Another Shs407 billion has been allocated to wage shortfalls in local governments and government ministries, agencies, and departments.
ATMs, which stands for agro-industrialisation, tourism development, mineral-based industrial development, and science, technology, innovation (including ICT and the creative arts industry) has been allocated Shs1.3 trillion.
A total of Shs942 billion has been allocated to infrastructure for road and railway construction. This is in addition to the Shs6.3 trillion for integrated transport and infrastructure in the initial budget, bringing the total to Shs7.2 trillion, making it the third-highest funded sector.
Kira Municipality MP Ibrahim Ssemujju said what the government presents as a budget is merely a wish list with no concrete plan for financing, as revenue projections remain at Shs35 trillion.
“Section 12(8) above demands that the budget must be based on sound analysis and forecasts of macroeconomic development. In January, the budget framework paper had a total budget of Shs57.440 trillion.
“In February, the Secretary to the Treasury, in the second budget call circular, raised the budget to Shs66 trillion, and today, the total budget has risen to Shs71.9 trillion in the draft estimates and revenue booklets,” Mr Ssemujju added.
