Politics 29 April 2026 The Observer (Uganda)
Parliament Erupts Over State House Lavish Spending in Record Shs 84 Trillion Budget
Uganda's Parliament has ignited a fierce debate on the Shs 84.39 trillion 2026/27 national budget, spotlighting massive State House allocations amid soaring public debt and cuts to health and education. Critics, led by MP Ibrahim Ssemujju Nganda, decry extravagant expenses like Shs 536 billion on special meals while essential services suffer. Source: https://observer.ug/news/state-house-spending-row-explodes-in-parliament
Uganda’s 2026/27 national budget has reached a historic Shs 84.39 trillion, up Shs 12 trillion from the previous Shs 72.3 trillion plan. Parliament approved it last week, but heavy reliance on borrowing—Shs 11.27 trillion external and Shs 25.7 trillion domestic—has sparked alarm as public debt climbs to Shs 126.18 trillion.
Domestic borrowing is squeezing the private sector, with banks lending Shs 67 trillion to government versus Shs 25.4 trillion to businesses, keeping interest rates high and hindering growth. Principal repayments alone are set at Shs 13.9 trillion next year.
The fiercest criticism targeted State House’s Shs 479 billion allocation, flagged in a minority report by Kira MP Ibrahim Ssemujju Nganda. He highlighted Shs 214 billion for welfare and entertainment, Shs 536 billion for special meals and drinks, Shs 1 trillion for inland travel, Shs 207 billion for foreign trips, Shs 514 billion for fuel, and Shs 196 billion for donations—plus Shs 800 million for a musical instrument and Shs 14 billion for gas and firewood.
Ssemujju accused State House of under-budgeting initially (Shs 508 billion this year, later supplemented to Shs 967 billion) and flouting the Public Finance Management Act by withholding vehicle and staffing reports. He noted State House spending has outpaced the Parish Development Model (PDM) over five years, despite PDM’s Shs 4.2 trillion total aimed at lifting 39% of households into the money economy.
Health and education bore the brunt of cuts: Health got Shs 40 billion of Shs 60 billion requested for ambulances and Shs 10 billion of Shs 20 billion for maintenance. Education’s National Curriculum Development Centre received Shs 2.5 billion of Shs 6 billion for A-level materials, while the Examinations Board got zero for examiner training.
Unpaid hospital bills as of December 2025 topped Shs 17.78 billion at Mulago, with others like Jinja (Shs 5.27 billion) and Arua (Shs 3.17 billion) in arrears, delaying care and supplies. Ssemujju urged redirecting Shs 30 billion from State House donations to ambulances.
The budget underscores tensions between ambitious state expansion and pressing needs like healthcare, education, and poverty alleviation amid high living costs.
Source: The Observer (Uganda)