When parliament passed Uganda’s Shs 72.376 trillion budget for the 2025/26 financial year last week, the figures were big but the questions were even bigger.
What does this massive spending plan mean for ordinary Ugandans? Will it deliver real change or merely expand the country’s debt? Let’s break it down in everyday language. The approved budget is larger than last year’s by Shs 239 billion a modest increase on paper, but in real terms, it’s a sharp reflection of how Uganda continues to rely heavily on borrowing.
Out of the total budget, only Shs 37.2 trillion is expected to come from within Uganda itself (through taxes and fees), while Shs 11.3 trillion will be borrowed locally, and another Shs 11.32 trillion will come as loans and grants tied to development projects.
There’s also Shs 10.02 trillion set aside for refinancing existing debts essentially using new loans to pay off old ones. On top of that, another Shs 11.33 trillion is going into interest payments alone. This means a significant portion of Uganda’s money will be used to manage debt, rather than finance new development.
WHERE IS THE MONEY GOING?
The budget’s theme “Full Monetisation of Uganda’s Economy” sounds ambitious. It emphasizes making agriculture, services and digital sectors more productive and competitive. But turning that vision into real results depends heavily on how and where funds are allocated.
Top priority went to Development Plan Implementation, which includes infrastructure, industrialisation and service delivery. It was allocated Shs 29.5 trillion, nearly 41 percent of the total budget. Human Capital Development, which includes health and education, got Shs 11.4 trillion.
Security remains a major focus, receiving Shs 9.9 trillion more than the allocations for transport, agriculture, or even health. This continues a long-standing trend of placing heavy emphasis on defence and policing, even in times of economic strain.
The budget outlines significant investments aimed at boosting household incomes, especially in rural areas. The Parish Development Model got a hefty Shs 1.075 trillion. Other community initiatives, like the Emyooga, youth and women empowerment programmes, and support for older persons, received hundreds of billions collectively.
But questions linger: is this money truly reaching communities or getting stuck in bureaucracy, corruption and poor oversight? Past audits have revealed serious gaps between what’s planned and what actually gets done.
For now, the numbers look good but the impact on the ground remains to be seen.
ROADS, RAILWAYS AND REBUILdING THE ECONOMY
Infrastructure remains one of the government’s biggest bets for economic transformation. A significant Shs 2.2 trillion is going toward roads, while Shs 2.175 trillion has been set aside for the long-awaited Standard Gauge Railway.
If completed, the railway could drastically reduce transport costs and boost trade but past delays and cost overruns raise concerns. Meanwhile, tourism development got small but strategic funding (Shs 42 billion total), aimed at revitalizing key sites like Mt Rwenzori and the Source of the Nile.
These are sectors with high potential for jobs and foreign exchange, yet they often remain underfunded.
HEALTH AND EDUCATION: PROGRESS OR PLATEAU?
The health sector received sizeable international support—over Shs 1 trillion from the Global Fund and nearly Shs 200 billion from GAVI. But domestic health spending remains modest in comparison to the country’s needs.
The Uganda Heart and Cancer institutes got Shs 65.5 billion and Shs 42.1 billion respectively for much-needed upgrades, while Shs 623.5 billion was allocated to supply medicine across public hospitals. In education, the budget is pushing forward with secondary school expansion (Shs 244.9 billion) and vocational training (Shs 54.4 billion).
Still, some analysts argue these investments fall short of addressing deeper systemic issues like overcrowded classrooms, poor teacher pay, and exam cheating. Digital transformation is a key buzzword in this year’s budget.
The GovNet project, aimed at connecting government services across Uganda, got Shs 197 billion. This could significantly improve access to public services, especially in rural areas—if implemented well.
Energy projects, including the Karuma Hydroelectric Power Project and rural electrification, received several hundred billion shillings. Meanwhile, climate-resilient agriculture and irrigation programmes got Shs 127.9 billion, a necessary investment as Uganda continues to face erratic weather patterns and droughts.
PREPARING FOR 2026
As Uganda edges closer to national elections in 2026, the government has allocated Shs 450 billion to the Electoral Commission and related democratic processes. This signals the beginning of the country’s pre-election financial commitments raising both hopes and concerns about fairness, transparency, and rising political tension.
Also notable is the allocation of funds to clear domestic arrears and settle historical claims, such as the Shs 8 billion earmarked for cattle compensation in Acholi, Lango and Teso. While the budget gives the impression of a government investing in people, infrastructure and long-term growth, the heavy dependence on debt raises red flags. Is this sustainable?
Can Uganda grow its tax base fast enough to keep up with its borrowing? For many ordinary Ugandans, the real test isn’t in trillions it’s in the basics. Can they afford food, medicine, school fees, and transport? Will this budget help fix potholes, power outages, and medicine shortages? Only time and good governance will tell.
WHAT’S NEW IN THE 2025/26 BUDGET?
• Total Budget: Shs 72.3 trillion
• Local Revenue: Shs 37.2 trillion
• Borrowing: Shs 11.3 trillion (domestic) + Shs 11.32 trillion (external)
• Top Priority: Development Plan Implementation (Shs 29.5 trillion)
• Security Sector: Shs 9.9 trillion
• Debt Interest Payments: Shs 11.33 trillion
• Health Medicines: Shs 623.5 billion
• Education Expansion: Shs 244.9 billion
• Roads & Rail: Over Shs 4.3 trillion
• Elections: Shs 450 billion
• PDM & Emyooga: Over Shs 1.1 trillion combined
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Common sense demands that this long serving African military junta resigns so that this poor African country can address the international and national financial communities with a different economic policy approach to paying its debts. It is unfortunate that these financiers of Uganda debts are constantly duped by the ruling NRM military Junta as if it has that economic magic wand of winning soon some high value international lottery tickets that will automatically pay up these astronomical debts now many years and counting.