Opposition Unveils Alternative Budget, Slams Unsustainable Debt and Tax Hikes

Uganda’s parliamentary Opposition launched its alternative budget for the 2026/27 financial year, highlighting the dangers of the nation’s escalating debt crisis. Presented on April 7, 2026, the plan criticizes the government’s over Shs78 trillion budget, where more than half is tied up in debt repayments and unavoidable expenses.

Leader of the Opposition Joel Ssenyonyi stressed that this leaves just Shs34.2 trillion—about 44%—for flexible spending on essentials like health, education, and roads. ‘For every Shs1,000 in taxes, over Shs300 goes to lenders,’ he noted, adding that Uganda now borrows to survive rather than grow.

The group pointed to failed projects like Atiak Sugar Factory, Dei BioPharma, and Lubowa Hospital as signs of poor fund management. They also flagged 27 stalled infrastructure initiatives and idle loans racking up fees.

Civil Society Budget Advocacy Group (CSBAG) Executive Director Julius Mukunda decried shifting budget figures—from Shs84 trillion to Shs43 trillion—and debt eating 39% of resources. He opposed doubling mivumba import tax to 30% and smartphone levies, which he says block youth opportunities in a nation without strong local textiles.

Mukunda urged better revenue collection via local governments instead of rate hikes, noting massive gaps like Shs8.1 trillion for agro-industrialization. The Opposition blasted cuts to domestic arrears from Shs1.4 trillion to Shs200 billion.

Their Shs71.4 trillion alternative pushes cuts to domestic borrowing, travel perks, and vehicle fleets; prioritizes arrears and concessional loans; and boosts social sectors. Health gets just 6% of the budget versus the 15% Abuja goal, while agriculture lacks irrigation and market support.

Ssenyonyi framed it as choosing ‘discipline over excess’ to safeguard livelihoods. Source: Parliament of Uganda