Ssemujju Warns of "Government Coming for Your Money" with New Budget

Ibrahim Ssemujju Nganda, a former Member of Parliament for Kira Municipality and Secretary General of the People’s Front for Freedom (PFF), has voiced strong concerns regarding the recently presented Shs84.3 trillion national budget for the 2026/27 financial year.

Speaking on NBS Frontline, Ssemujju asserted that the government’s strategy for financing this substantial budget hinges significantly on borrowing and increased domestic revenue collection. He specifically noted that the government intends to borrow Shs36 trillion, leading him to warn Ugandans that “the government is coming for your money” to bridge the funding gap.

This reliance on borrowing, Ssemujju explained, could lead to increased competition for credit between the government and the private sector. He cautioned that this scenario might negatively impact businesses that depend on bank loans for their operations and expansion.

Echoing these sentiments, Gyaviira Lubowa Ssebino, the Nyendo-Mukungwe MP from the National Unity Platform (NUP), highlighted the potential for domestic borrowing to “crowd out” local entrepreneurs. He argued that banks are likely to favor lending to the government over local traders and manufacturers due to perceived lower risk.

Furthermore, Ssemujju pointed to perceived gaps in critical sectoral allocations, particularly within health and education. He cited specific shortfalls, such as Shs28 billion for medical interns’ allowances, Shs8 billion for Uganda National Examinations Board (UNEB) training, and Shs3.5 billion for the National Curriculum Development Centre (NCDC) – amounts he believes are crucial for effective service delivery.

He also questioned certain expenditure items, listing Shs211 billion for welfare and entertainment for senior officials, Shs536 billion for special meals, Shs196 billion for donations, and a significant Shs2.6 trillion allocated to classified expenditure, suggesting these might be misplaced priorities given the needs in essential services.

Despite these criticisms, the government, through Finance Minister Henry Musasizi, has defended the budget allocations, earmarking Shs6.66 trillion for education and Shs5.23 trillion for health, aiming to support maternal health, immunisation, and teacher salary enhancements, among other initiatives. The budget also includes provisions for infrastructure development, particularly for sports ahead of the 2027 Africa Cup of Nations.

As discussions continue, concerns about the rising debt levels and the pressure from domestic financing are expected to remain central to Uganda’s fiscal outlook.

Source: Nile Post