Parliament has given the green light to Uganda’s national budget for the 2025/2026 financial year, totaling Shs72.376 trillion. The approved budget prioritizes infrastructure development, social welfare programs, and enterprise growth, signaling the government’s commitment to driving economic progress. The Budget Committee’s Vice Chairperson, Remigio Achia, presented the key allocations before the House adopted the estimates, marking a crucial step in the country’s fiscal planning.

A significant portion of the budget has been directed toward initiatives aimed at uplifting local communities. The Parish Development Model, a flagship program designed to boost household incomes, has been allocated Shs1.075 trillion. Another Shs100 billion will go toward the Emyooga initiative, which supports small business owners and entrepreneurs. Additionally, the Jua Kali sector, a vital part of Uganda’s informal economy, will receive Shs3 billion to enhance enterprise development. The Uganda Development Bank has also been granted Shs414 billion to provide affordable financing for businesses, a move expected to stimulate economic growth.

One notable increase in the budget is the allocation for domestic arrears, which has risen sharply from Shs200 billion in the previous financial year to Shs1.4 trillion. This adjustment aims to address outstanding government debts and improve financial stability. However, Achia urged the government to improve the efficiency of loan utilization, warning against the risk of unabsorbed funds. He emphasized the need for better strategies to ensure borrowed money is fully utilized before project closures, avoiding wastage and delays.

Infrastructure development remains a major focus, with substantial funds set aside for key projects. The construction of the Standard Gauge Railway will receive Shs1.17 trillion, while Shs2.2 trillion has been allocated for the upgrade and rehabilitation of national roads and bridges. These investments are expected to enhance transportation, boost trade, and create employment opportunities. Another significant allocation is the Shs80 billion earmarked for cattle compensation in the Acholi, Lango, and Teso sub-regions, addressing long-standing grievances related to livestock losses.

Despite the broad support for the budget, disagreements arose over certain allocations, particularly the continued funding of the Lubowa International Hospital project. The Leader of the Opposition, Joel Ssenyonyi, questioned the rationale behind channeling more funds into the controversial project, which has faced criticism for lack of transparency and slow progress. The debate highlighted concerns over accountability and the need for clearer oversight in government spending. Nevertheless, the budget was passed, reflecting the majority’s endorsement of the proposed allocations.

The approval of the Shs72.3 trillion budget marks a critical milestone in Uganda’s economic planning for the coming year. The allocations demonstrate a deliberate effort to address pressing needs in infrastructure, social welfare, and business development. By investing in roads, railways, and community programs, the government aims to create a more connected and economically empowered population. The focus on enterprise support through initiatives like Emyooga and the Parish Development Model is also expected to uplift low-income households and reduce poverty levels.

While the budget has been welcomed by many, concerns remain about implementation and accountability. Lawmakers have called for stricter monitoring to ensure funds are used effectively and reach their intended beneficiaries. The debate over the Lubowa hospital project underscores the need for greater transparency in how public resources are managed. Moving forward, the government will need to demonstrate its commitment to prudent financial management to maintain public trust and achieve the desired development outcomes.

As Uganda prepares to enter the new financial year, the approved budget sets the stage for ambitious projects and reforms. The emphasis on infrastructure and social programs aligns with the broader vision of transforming the economy and improving livelihoods. However, success will depend on efficient execution, reduced wastage, and strong oversight to ensure every shilling delivers value to the people. With the budget now in place, all eyes will be on the government to turn these plans into tangible results for the nation.