Uganda Approves Shs72.3 Trillion National Budget for 2025/2026 Financial Year

Strategic Insights -

Lawmakers in Uganda yesterday approved a Shs72.3 trillion national budget for the 2025/2026 financial year, marking a slight increase from the Shs72.137 trillion allocated for the previous financial year. The budget, which was presented by the Budget Committee vice chairperson, Mr Achia Remigio, will be mobilized from multiple sources, including domestic sources, grants, and external loans. The national budget allocation prioritizes human capital development, governance and security, and transport infrastructure.

Key Takeaways:

  • The Human Capital Development programme takes the largest share of the budget with Shs11.4 trillion, allocated towards the Global Fund for TB, HIV/AIDS, and malaria, as well as GAVI support for vaccine procurement and health sector development.
  • Transport infrastructure has been allocated Shs6.3 trillion, with construction of the Standard Gauge Railway receiving Shs2.1 trillion and construction, upgrade, and rehabilitation of national roads and bridges receiving an additional Shs2.1 trillion.
  • Shs1 trillion has been allocated for the Parish Development Model (PDM), focusing on boosting household incomes and micro-enterprises, industrialization and private sector development, and commercialization of agriculture.
  • Key priorities in the education sector include spending 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).
  • Other notable allocations include Shs275 billion for SMEs under the Investment for Industrial Transformation and Employment (INVITE) programme, Shs450 billion for the election roadmap, and Shs686.35 billion for midstream petroleum infrastructure.
  • Concerns have been raised by lawmakers regarding domestic arrears, with detractors pointing out that Shs1.4 trillion allocated for the year may be insufficient to address the scale of unpaid debts.
  • Reactions have also been expressed about the budget's prioritization of private entities as bailouts over local contractors who have provided services to the government.

Statistics:

  • Shs72.3 trillion: Total national budget for 2025/2026 financial year
  • Shs11.4 trillion: Allocation for Human Capital Development
  • Shs9.9 trillion: Allocation for Governance and Security
  • Shs11.3 trillion: Allocation for External Debt Repayment
  • Shs3.8 trillion: Remaining balance of domestic arrears to be settled in the next 3 years
  • Shs275 billion: Allocation for SMEs under the INVITE programme
  • Shs450 billion: Allocation for the election roadmap
  • Shs686.35 billion: Allocation for midstream petroleum infrastructure
  • Shs244.9 billion: Allocation for the Uganda Secondary Education Expansion Project (Phase II)
  • Shs1 trillion: Allocation for the Parish Development Model (PDM)

Sources:

  • [Budget Committee vice chairperson, Mr Achia Remigio's presentation]
  • [State minister of Finance, Mr Henry Musasizi's response to concerns over domestic arrears]
  • [Kira Municipality MP, Ibrahim Ssemujju Nganda's recommendations on budget re-allocation]
  • [Speaker of Parliament, Ms Anita Among's announcement on the budget reading]
  • [Leader of the Opposition in Parliament, Mr Joel Ssenyonyi's criticism of government for neglecting domestic arrears]