Uganda's Parliament Approves Shs84.3 Trillion Budget Amid Opposition Backlash

Uganda’s Parliament approved a massive Shs84.3 trillion budget for the 2026/27 financial year on Friday, despite fierce opposition. The session, starting at 10am, featured strong warnings from Opposition figures like Shadow Finance Minister Ibrahim Ssemujju Nganda and Shadow Constitutional Affairs Minister Jonathan Odur about government fiscal mismanagement.

House Budget Committee Vice Chairperson Remigio Achia defended the budget, highlighting its growth potential. He noted it features boosts in infrastructure, energy, manufacturing, and human capital, while cutting housing and extractives. The budget rises from Shs72.4 trillion last year, funded by domestic and external sources, aiming to lift GDP growth from 7.3% to 10.4%, fueled by upcoming oil production.

Opposition Leader Joel Ssenyonyi slammed the budget’s rapid revisions—from Shs69.3 trillion post-elections to Shs84.3 trillion—calling it non-transparent and undisciplined. He proposed a Shs71.4 trillion alternative prioritizing education, healthcare, and agriculture to protect lives and livelihoods.

Economic indicators remain positive, with low inflation at 3.5% headline and 3.7% core. Public debt climbed to Shs126.18 trillion, pushing the debt-to-GDP ratio to 50.97%. Experts like Julius Mukunda of CSBAG worry about new tax measures burdening a narrow base and raising living costs. Tax specialist Robert Mbazira urged frugality, anti-corruption efforts, and completing ongoing projects.

Achia projected the economy to reach USD68.4 billion by June 2026, with 10.2% growth in the new year thanks to solid macro management.

Key allocations include Shs35.7 trillion for development plans, Shs13.6 trillion for human capital, and Shs10.2 trillion for governance and security.

Source: Daily Monitor (Uganda)