KAMPALA— Uganda’s national budget for the 2025/26 financial year has once again expanded, reaching a substantial 72.7 trillion shillings, as the government allocates more funds to address pressing needs identified by Members of Parliament.
State Minister for Finance Henry Musasizi informed the parliamentary budget committee of this latest increase, stating that an additional 1 trillion shillings has been earmarked to fund critical unfunded priorities highlighted by MPs. He assured the committee that this supplementary funding aims to enhance service delivery across the country and will be formally presented to the House for approval through a corrigendum.
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This marks the fourth time the budget estimates have been revised upwards. The initial budget framework, presented in February, stood at 57.4 trillion shillings. This was followed by an increase to 66 trillion shillings later the same month, attributed to anticipated higher revenue collection. By March, the budget had already grown to 71.7 trillion shillings. The current figure of 72.7 trillion shillings represents a significant expansion from the initial projections.
Minister Musasizi explained that the Ministry of Finance had explored all possible avenues for identifying new financial resources. He appealed to all government spending agencies to operate within their allocated budgets to meet their expenditure demands effectively.
The additional 1 trillion shillings will be directed towards several key areas, including:
- Parliamentary Commission:Receiving a significant boost of 117 billion shillings to reinstate previously reduced budgetary allocations.
- Buganda Kingdom:With 38 billion shillings allocated as the first phase of a four-year compensation plan for the kingdom’s land. While the government’s official valuation of the claim is 160 billion shillings, the Buganda Kingdom asserts that the outstanding amount is 500 billion shillings.
- Coffee Farming in Northern Uganda:A substantial allocation of 60 billion shillings through the Ministry of Agriculture to procure coffee seedlings for farmers in the northern region, aiming to boost production and livelihoods.
- Nuclear Medicine Project:An additional 62 billion shillings has been allocated to the Positron Emissions Tomography (PET) project, bringing the total investment to 92 billion shillings.
- Kampiringisa-Mpigi Fertiliser Factory:Allocated 104 billion shillings to support its development.
- Uganda AIDS Commission:Receiving 6 billion shillings for crucial counterpart funding.
- Uganda Telecommunications Corporation Limited (UTCL):An allocation of 10 billion shillings to settle outstanding financial obligations.
- Jua Kali Programme:With 3 billion shillings earmarked to support this small-scale enterprise initiative.
Members of Parliament on the budget committee offered varied reactions to this latest budget swell. While some, like Deputy Chairperson Remigio Achia, acknowledged the government’s consideration of their recommendations as “encouraging,” others raised concerns about persistent funding gaps in critical areas such as ambulance maintenance and fuel.
Muwanga Kivumbi, the chairperson of the Buganda parliamentary caucus, welcomed the compensation commitment to the kingdom but suggested that a lump-sum payment would be more impactful for their development plans.
The trend of upward budget revisions echoes the process observed during the formulation of the current 2024/25 financial year budget, which also saw significant increases from its initial estimates. This continued expansion of the national budget will likely fuel further debate and scrutiny as Parliament moves to consider the latest figures.
