Parliament Approves Shs84.3 Trillion Budget for 2026/2027 Fiscal Year

The Ugandan Parliament, under the leadership of Speaker Anita Among, has passed the national budget for the upcoming 2026/2027 fiscal year, setting the government’s spending at Shs84.3 trillion.

Finance State Minister Henry Musasizi outlined that the budget will be primarily funded through domestic revenue, expected to contribute Shs44.18 trillion. Other significant revenue sources include domestic borrowing, external project support, and petroleum revenues. However, a considerable portion of the approved expenditure, Shs37.23 trillion, is categorized as statutory spending, predominantly for debt servicing, wages, and pensions.

Debt servicing stands out as the largest expenditure item, projected to consume approximately Shs33.4 trillion. This includes substantial amounts for interest payments, largely driven by domestic borrowing, and principal repayments.

The budget aims to stimulate growth through increased production, industrialization, and improved household incomes. Key sectors receiving allocations include agro-industrialization (Shs2.2 trillion), tourism development (Shs571.5 billion), and mineral-based industries (Shs435.5 billion). Human capital development is allocated the largest share at Shs13.5 trillion, with provisions for teacher salary enhancements and preparations for the AFCON 2027 tournament.

Despite the broad allocations, concerns were raised regarding fiscal management. Kira Municipality MP Ssemujju Nganda criticized late changes to the budget figures, arguing they violated the Public Finance Management Act and could lead to financial abuse. He highlighted that debt servicing, wages, administrative expenses, and classified expenditures together account for about 70% of the budget.

Discussions also touched upon specific allocations, including the delayed International Specialised Hospital Lubowa, the funding for Bunyoro University, and reparations to the Democratic Republic of Congo. The Minister of State for Education (Sports) assured that efforts would continue to secure funding for Bunyoro University, while the Minister of State for Primary Health Care stated the Lubowa hospital is nearing completion.

https://www.howwe.ug/news/national/42874/parliament-passes-shs84.3-trillion-2026-27-budget