Understanding Uganda's Budget: How Your Shs1.8 Million Share is Spent

The national budget, often presented in abstract trillions of shillings, can be difficult for the average Ugandan to comprehend. For the financial year 2026/27, the Shs84 trillion budget translates to a theoretical annual share of approximately Shs1.8 million for each of Uganda’s 47 million citizens. This amount is not disbursed to individuals but represents the funds the government manages on behalf of its populace.

This Shs1.8 million per person is allocated across various sectors. A substantial 40% (Shs708,000) goes towards debt servicing and non-wage recurrent government operations. Government employee wages account for 11% (Shs207,000), while debt repayment (amortisation) takes up 5% (Shs89,000).

Development investments receive 26% (Shs469,000), and externally funded projects comprise 18% (Shs322,000). More specific allocations include 3% (Shs47,900) for agriculture, 12% (Shs217,000) for security and defence, 11% (Shs198,000) for education, 6% (Shs107,700) for health, and 10% (Shs187,000) for roads and infrastructure.

A striking comparison reveals that Shs708,000 per person is spent on debt servicing, which is 333 times more than the Shs47,900 allocated to agriculture. The budget for health medicines per person is a mere Shs2,128 annually, less than the cost of two paracetamol sachets or a short taxi ride in Kampala.

This allocation highlights how significant borrowing can lead to a fiscal structure where servicing past debts takes precedence over funding essential services and future development. This explains the persistent shortages in areas like medicine, agricultural support, and infrastructure, not primarily due to corruption but due to the fundamental architecture of the budget itself, which must first meet its financial obligations from previous borrowing.

Source: Daily Monitor (Uganda)