House passes Shs 84.3 trillion 2026/27 national budget

KAMPALA, April 27, 2026 — Parliament has passed a Shs 84.3 trillion national budget for the 2026/2027 financial year following the adoption of the Appropriation Bill and the report of the Budget Committee, which outlines how the funds will be raised and spent amid growing fiscal pressure from debt and statutory obligations.

The budget was approved during a sitting of the House chaired by Speaker Anita Among on Friday.

The State Minister for Finance, Henry Musasizi, told Members of Parliament [MPs] that the budget will be financed through domestic revenue of Shs 44.18 trillion, representing more than half of the total.

Other sources include domestic borrowing of Shs 11.97 trillion, external project support of Shs11.27 trillion, domestic refinancing of Shs 13.97 trillion, petroleum revenues of Shs 1.44 trillion, budget support grants of Shs 1.22 trillion and local government revenues of Shs 339 billion.

Of the approved expenditure, Shs 47.16 trillion has been allocated to discretionary spending, while Shs 37.23 trillion is classified as statutory expenditure, covering debt servicing, wages, pensions and other legally mandated obligations.

Presenting the Budget Committee report, the Deputy Chairperson, Remigio Achia, noted that a significant share of the budget is absorbed before reaching service delivery sectors, largely due to debt obligations.

Debt servicing alone is projected to consume about Shs 33.4 trillion, nearly 40 per cent of the total budget.

Interest payments are estimated at Shs 12.4 trillion, driven mainly by domestic borrowing, while principal repayments push total debt servicing above Shs 33 trillion, making it the single largest expenditure item.

Achia said the budget is anchored on boosting production, industrialisation and household incomes across key sectors.

Agro-industrialisation has been allocated Shs 2.2 trillion for agricultural research, inputs, irrigation, extension services, agro-processing and market access.

Tourism development will receive Shs 571.5 billion for infrastructure at tourism sites and global promotion.

Mineral-based industrial development, including oil and gas, has been allocated Shs 435.5 billion for mineral exploration, the national mining company, mineral markets and ongoing petroleum infrastructure projects.

Science, technology and innovation, including ICT and the creative industry, has been allocated Shs1.1 trillion to support innovation, digitisation of government services, internet expansion and business process outsourcing.

Shs 2.5 trillion has been allocated to wealth creation programmes under the Parish Development Model [PDM], Emyooga and youth initiatives, while the security sector will receive Shs 10.2 trillion to maintain peace and stability.

Human capital development takes the largest share at Shs 13.5 trillion, including a phased 25 per cent salary enhancement for teachers and Shs 496.3 billion for preparations for African Cup of Nations [AFCON] 2027.

Infrastructure development has been allocated Shs 10.8 trillion for roads, railways, water, electricity and transport systems.

Manufacturing will receive Shs 1.04 trillion, while environmental protection has been allocated Shs 514 billion.

Other allocations include Shs 651.5 billion for the administration of justice and Shs 1.2 trillion for legislation and oversight.

Additional funding has also been provided to address priority gaps, including Shs 664.3 billion for road completion works, Shs 45 billion for rural electrification, Shs 100 billion for medicines and health supplies, Shs 20 billion for export promotion, Shs 100 billion for cattle compensation in Northern Uganda, Shs 20 billion for ambulances and Shs 10 billion for maintenance.

In a minority report, Kira Municipality MP, Ibrahim Ssemujju Nganda, strongly opposed the late changes, accusing the government of undermining the Public Finance Management Act by introducing what he termed as last-minute “trafficking” of budget figures.

Ssemujju said the corrigenda, introduced just 48 hours before the deadline, increased the budget by Shs 997 billion and reallocated Shs 862 billion without supporting procurement or recruitment plans.

“This money is susceptible to abuse,” Ssemujju warned, adding that the late movements were deliberately designed to shift funds into areas with easier access.

He argued that four expenditure items alone consume about 70 per cent of the budget: debt servicing at Shs33.6 trillion, wages and salaries at Shs 14.1 trillion, administrative expenses at Shs 8.2 trillion, and classified expenditure at Shs 2.6 trillion.

Ssemujju Nganda also questioned Uganda’s reparations to the Democratic Republic of Congo amounting to Shs260.4 billion.

During the debate, Hon. Asuman Basalirwa (JEEMA, Bugiri Municipality) called for support for sickle cell disease in the budget, noting that the prevalence is high in Uganda, yet no funding had been provided.

Speaker Among asked government officials to desist from borrowing money and then conducting feasibility studies later.

The Minister for Information, Communication and Technology and National Guidance, Chris Baryomunsi, defended borrowing, stating that everywhere in the world people borrow, and that Uganda is repaying and utilising the funds effectively.

Kassanda County North MP, Patrick Nsamba Oshabe, proposed that several allocated funds could be rechannelled, for example from Atiak Sugar Works to health workers and education.

Edson Rugumayo, Youth Representative for the Western Region, said Ugandans are interested in deliverables, noting that clearly indicating which roads will be constructed and how communities will benefit is crucial.

Buhanguzi East MP, Stephen Aeera, expressed disappointment that Shs 100 billion initially proposed for Bunyoro University had been reduced to Shs 87 billion and later to Shs 12.5 billion.

The State Minister for Education [Sports], Peter Ogwang, said the government will ensure that the university is built in line with the President’s pledge.

The Leader of the Opposition, Joel Ssenyonyi, stated that the government has continued allocating funds for the International Specialised Hospital Lubowa despite little visible progress.

“Why do you keep coming back for money here? We should stop playing around with money, because nearly Shs 1 trillion has been spent,” he said.

The State Minister for Primary Health Care, Margaret Muhanga, said the hospital is 75 per cent complete and pledged to present a comprehensive update on its status within two weeks.

Speaker Anita Among said the government has decided not to pay money directly to ROKO Construction but instead to suppliers, noting that the contractor’s work had significantly slowed.

https://thecooperator.news/mps-raise-concerns-as-udc-takes-82-percent-of-trade-ministry-budget/