MBARARA CITY –– Mbarara City Council has approved a budget of over Shs 49.3 billion for the upcoming financial year [FY] 2025/2026, slightly lower than the Shs 51.4bln allocated for FY 2024/2025.
Ronald Taremwa Bamuhayira, the Secretary for Finance and Administration, presented the new budget figures during a council session on Wednesday. He called on fellow councillors to pass the budget before the close of the current financial year.
“Having scrutinised the draft for FY 2025/2026, the total resource envelope is Shs 49,326,710,880,” he announced.
Bamuhayira noted that the budget comprises local revenue collections amounting to approximately Shs 10.9bln [22 percent], and central government transfers of around Shs 38.4bln [78 percent].
“The largest portion of the budget will go towards service delivery, particularly in the health, education, and roads sectors,” he said, adding that investments in these areas will contribute to poverty reduction.
According to Mbarara City Mayor, Robert Mugabe Kakyebezi, the decrease in the budget is due to the exclusion of funding from the World Bank’s Uganda Support to Municipal Infrastructure Development [USMID] project, which concluded recently.
“Today, we’ve passed a 2025/26 budget of Shs 49.33bln. Most of this will be spent on staff salaries, education, health, and road works. The large sums we previously had included USMID funds, which helped complete works such as Col Ndahendekire Road and Bishop Stuart Road,” Kakyebezi explained.
He added that the government is set to introduce a new initiative – the Uganda Cities and Municipalities Infrastructure Development [UCMID] programme to succeed USMID.
“Through UCMID, we expect to receive an additional Shs 20bln in the next financial year, supplementing the current Shs 49bln budget,” he said.
Kakyebezi also commended both the technical team and elected leaders for their collective efforts in revenue collection and prudent use of taxpayers’ money.
“I’m pleased that over the past five years, we have worked together to pass budgets, implement projects, and address challenges. The unity in this council has been instrumental in advancing Mbarara City,” he stated.
During the budget discussions, council approved adjustments to several revenue streams: Mbarara Central Market toilet collections were increased from Shs 2 million to Shs 4.72mln, market rental collections rose from Shs 587.64mln to Shs 804mln, and slaughter fees were increased to Shs 216mln.
The councillors also unanimously approved the Annual Work Plan, Procurement Plan, Recruitment Plan, Five-Year Development Plan, and the Charge Policy for FY 2025/26.
Justine Barekye, the Town Clerk of Mbarara City, confirmed that out of the Shs 49bln budget, Shs 3.5bln will be allocated to road infrastructure development, while the remaining funds will support the rehabilitation of schools and health centres.
“We will construct two classroom blocks at Rwobuyenje Primary School, 2 classroom blocks at Biharwe Primary School in Nyakinengo, 2 blocks and an office at Rwakishakizi Primary School, rehabilitation and innovation of health centres among others,” Barekye said.
Jackie Kankunda, Deputy Resident City Commissioner Mbarara North, challenged the city leadership to include in the budget money to cater for emergencies.
“When you don’t have fuel, it affects security and that is service delivery, so I have raised that point so that we reserve fuel for the security purposes,” Kankunda said.
In response, the Town Clerk Barekye, reported that local governments operate on programme-based budgeting because of small budget allocations.
“In local government, you cannot get money and reserve it for emergencies. It can’t work because our resource envelope is small. That is why we make sure that every money we budget for must be committed to a specific project. What if that emergency doesn’t happen?” Barekye noted.
https://thecooperator.news/national-budget-month-for-fy-2025-26-launched/
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