Uganda Opposition Unveils Alternative Budget to Tackle Soaring Debt Crisis

Uganda’s parliamentary Opposition presented its alternative budget for the 2026/27 financial year, highlighting severe risks from the country’s escalating debt. Leader of the Opposition, Hon. Joel Ssenyonyi, stressed that over half of the proposed Shs78 trillion national budget is tied up in debt repayments and fixed costs, leaving just Shs34.2 trillion for essential spending.

“For every Shs1,000 in taxes, more than Shs300 goes to lenders,” Ssenyonyi noted, adding that Uganda now borrows for survival rather than growth. This squeeze has led to underfunded health and education sectors, stalled infrastructure, and growing inequality.

Critics pointed to failed projects like Atiak Sugar Factory and Lubowa Hospital as signs of poor financial management. Civil Society Budget Advocacy Group Executive Director Julius Mukunda criticized shifting budget figures—from Shs84 trillion to Shs43 trillion—and debt servicing eating 39% of resources.

Mukunda opposed tax hikes on second-hand clothes and smartphones, arguing they burden the poor and stifle youth opportunities without boosting local industries. He suggested improving revenue collection efficiency via local governments instead.

The Opposition’s plan calls for a realistic Shs71.4 trillion budget, cutting domestic borrowing, clearing arrears, and trimming luxuries like travel and vehicle fleets. It prioritizes social sectors, noting health gets only 6% of funds versus the 15% Abuja target, and pushes for concessional loans over commercial debt.

Ssenyonyi framed the proposals as a push for fiscal discipline and transparency to safeguard livelihoods.

Source: Parliament of Uganda