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Funding Shortfalls Raise Concerns Over Uganda’s NDP IV Targets

by MANFRED TUMUSIIME | UG STANDARD REPORTER
09/01/2025
in Business, News
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Matia Kasaija appearing before the committee
Matia Kasaija appearing before the committee (PHOTO/Courtesy).

Kampala, Uganda – The Civil Society Budget Advocacy Group (CSBAG) has raised concerns over the government’s ability to deliver on the ambitious targets outlined in Uganda’s fourth National Development Plan (NDP IV).

According to CSBAG Executive Director Julius Mukunda, the government has allocated Shs57.4 trillion for the financial year 2025/26, which is short of the planned Shs67.8 trillion. “Starting NDP IV with such a significant shortfall of Shs10.4 trillion signals early failure in achieving the desired results,” Mukunda said.

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Mukunda criticized the underfunding of critical programs like the Area-Based Transformative Measures (ATMs), which are central to driving growth under NDP IV. “These ATMs are considered the magic growth pillars of the plan, yet they have been allocated only Shs2.7 trillion out of the required Shs4.7 trillion. A gap of Shs2 trillion is unacceptable and undermines the entire initiative,” Mukunda added.

Discrepancies in resource allocation were also highlighted, with some programs receiving funding exceeding NDP IV estimates. Mukunda attributed this to poor coordination and uncoordinated allocation of resources, which risks fragmented efforts and divergence from the core objectives of the development plan. “This is not a sign of additional investment but a reflection of poor coordination and uncoordinated allocation of resources,” he noted.

Mukunda emphasized the need for improved coordination among government agencies, evidence-based costing, and stronger accountability mechanisms. “We need evidence-based costing that reflects the availability of resources and the potential outcomes of each programme. Only then can we ensure that every shilling spent contributes directly to Uganda’s transformation agenda,” he said.

He also called for the amendment of the outdated Public Finance Management Act of 2015 to formalize program-based budgeting. “The Public Finance Management Act of 2015 and its accompanying regulations still reference sectoral committees and sector budget framework papers which are incompatible with the new approach,” he explained.

Mukunda further stressed the importance of enforcing accountability at all levels. “We must enforce accountability at all levels from national agencies to local governments to ensure that funds are spent as planned and to avoid waste and corruption,” he stated.

Lawmakers have expressed mixed reactions to the CSBAG’s proposals. Faith Nakut (Napak District Woman Representative) hailed the proposals, particularly on penalties for districts that fail to comply with the NDP. “It will make them take the goals seriously,” she said.

However, Agnes Apea (Amolatar District Woman MP) criticized the plan, saying it lacks a clear vision for the country’s development. “The NDP looks like a project development plan rather than a development plan. In the infrastructure development, a plan could have come for instance for Northern Uganda stating that for infrastructure and connectivity, we will have a rail here, these roads connect here…something like that, but the plan has cherry picking,” she said.

Patrick Isiagi, chairperson of the Budget Committee, acknowledged the concerns raised by CSBAG and promised to engage with the Ministry of Finance to address the issues. “We will work closely with the Ministry of Finance to ensure that the budget is aligned with the NDP IV goals and that the necessary resources are allocated,” he said.

The NDP IV aims to propel Uganda’s economic growth and development over the next five years. However, with significant budget shortfalls and discrepancies in resource allocation, achieving the plan’s ambitious targets may prove challenging.

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Tags: AfricaBudget AllocationBudget ShortfallsCivil Society Budget Advocacy GroupCSBAGDevelopment PlansEast africaeconomic development.National Development Plan IVNDP IVResource Management.Uganda

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