The Independent Uganda: You get the Truth we Pay the Price
Kampala, Uganda | THE INDEPENDENT | As Uganda’s Minister of Finance, Matia Kasaija, readies to present the national budget on June 12, civil society organizations have issued strong recommendations urging the government to improve fiscal discipline, enhance budget execution, and ensure meaningful service delivery.
The Civil Society Budget Advocacy Group (CSBAG), in a press briefing held on June 8 in Ntinda, Kampala provided an in-depth analysis of the approved FY2025/26 budget, highlighting both commendable strides and pressing concerns.
The group praised progressive tax reforms, such as income tax exemptions for start-ups in their first three years, and welcomed the adoption of 47% of their proposals into the final budget—especially in programs like Development Plan Implementation (71%) and Agro- Industrialisation (66.7%). However, they warned that without improved project preparation, accountability, and implementation, the budget risks underdelivering on its development goals.
One of CSBAG’s key recommendations calls for strict enforcement of pre-feasibility and feasibility studies before initiating infrastructure projects. They noted that 15 out of 49 loan- funded projects between FY2018/19 and FY2023/24 lacked these assessments, resulting in cost overruns and delays.
The group further advised the government to improve absorption of approved funds, particularly at the local level. They cited significant unspent funds in the previous year, including Shs 463.77 billion under the USMID program and Shs 89.3 billion under UgIFT. In tandem, they urged prioritization of pending contractor payments, warning that delays have stalled critical road projects, such as the Busabala Flyover, compromising public safety.
CSBAG also urged reforms in credit access initiatives like the Small Business Recovery Fund and Parish Development Model. They emphasized the need for recovery and reinvestment strategies to sustain these funds and improve their impact.
While acknowledging the budget’s alignment with Uganda’s Fourth National Development Plan (NDP IV), CSBAG expressed concern over a Shs 1.2 trillion shortfall in funding for the priority ATMS sectors (Agro-industry, Tourism, Minerals, and Science and Technology). The sectors received only 5% of the total budget, against the 7% target, threatening Uganda’s ambition to grow GDP tenfold by 2040.
Equally troubling is the rising debt burden. Uganda’s public debt now stands at Shs 107 trillion, with 53.34% of GDP earmarked for debt servicing—above the government’s own 50% target.
Interest payments alone are projected to consume Shs 9.44 trillion, or 25.4% of total revenue.
The CSOs also highlighted persistent fiscal indiscipline through unsanctioned supplementary budgets and a sharp increase in domestic arrears—from Shs 10.5 trillion in FY2022/23 to Shs 13.8 trillion in FY2023/24. Despite allocating Shs1.4 trillion for arrears clearance, new payables are accumulating faster than repayments.
On the social front, funding for essential medicines under the National Medical Stores has declined slightly, as has the overall budget for the Ministry of Education and Sports, which will see a Shs 9.8 billion reduction. These cuts, CSBAG warned, could deepen service delivery gaps, especially amidst declining donor support in the health sector and recent mergers of agricultural agencies under the Ministry of Agriculture.
In the face of these constraints, the group called for a realignment of fiscal priorities to boost local government financing, support tourism development, and strengthen manufacturing.
Despite tourism’s growing contribution to GDP—rising from 4.7% in 2022 to 6.6% in 2024—the sector received only Shs 427.59 billion, far below the NDP IV proposal.
The recommendations come at a critical time for the country. With the budget set to shape the first year of NDP IV and a new post-2026 government on the horizon, CSBAG emphasized that success depends not on the figures allocated, but on how every shilling is spent.
