Parliament approved the Uganda national budget 2025/2026, setting it at Shs72.3 trillion. This amount slightly exceeds last year’s Shs72.137 trillion. Lawmakers debated the proposal for nearly seven hours under tight security at the Parliamentary precincts. Budget Committee vice chairperson Achia Remigio delivered the report, explaining that the government will raise Shs37.2 trillion from domestic revenue. It will also secure Shs2.08 trillion from external grants and loans and borrow Shs11.38 trillion locally.
In addition, officials plan to allocate Shs10 trillion to refinance domestic debt and Shs11.3 trillion to support development projects using grants and loans. Human Capital Development tops the allocations with Shs11.4 trillion. Governance and Security follows at Shs9.9 trillion. Meanwhile, the government assigned Shs6.3 trillion to transport infrastructure, Shs2.7 trillion to private sector development, and Shs2.6 trillion to agro-industrialisation.
By contrast, several sectors received less funding. Public Sector Transformation will get Shs258.6 billion, while Manufacturing gets Shs311.8 billion and Climate Change-related programmes receive Shs364.8 billion. The government also set aside Shs28.5 trillion for domestic arrears, interest payments, and external debt servicing.
Transport infrastructure remains a top priority. The Standard Gauge Railway project will receive Shs2.1 trillion. Another Shs2.1 trillion will support road and bridge upgrades. Major projects include the Kisoro-Nkuringo-Rubugiri-Muko Road (Shs1.2 trillion), Hoima-Wanseko Road (Shs185.47 billion), and Rwenkunye-Apac-Lira-Acholibur Road (Shs166.25 billion). The Ministry of Works will also use Shs91.78 billion to upgrade district and community roads.
The government has increased funding for health services. It will invest Shs1 trillion through the Global Fund to fight TB, HIV/AIDS, and malaria. GAVI will contribute Shs194.2 billion for vaccines and health system support. The Uganda Heart Institute receives Shs65.65 billion for new facilities, while the Uganda Cancer Institute will use Shs42.14 billion for upgrades. Another Shs116.94 billion funds general hospital construction. Regional oncology and diagnostic centers in Arua, Mbale, and Mbarara will receive Shs30.75 billion. Health facilities across the country will get Shs623.51 billion to restock essential medicine and supplies.
In education, the government allocated Shs244.9 billion to the Uganda Secondary Education Expansion Project (Phase II). It also committed Shs12.87 billion to developing primary schools and Shs54.44 billion to expand vocational education.
To improve livelihoods, the government invested Shs1 trillion in the Parish Development Model. Emyooga Saccos receive Shs100 billion, with Shs20 billion going to teachers. The Microfinance Support Centre will manage Shs76.67 billion, which includes Shs30 billion for lending and Shs10 billion for special interest groups. Programmes targeting women and youth also gained funding. The Uganda Women Entrepreneurship and Youth Livelihood Programmes share Shs23.6 billion. The GROW programme receives Shs231.3 billion, while SAGE gets Shs121.1 billion.
The energy and oil sectors received Shs686.35 billion. This will fund EACOP, housing resettlement, refinery works, and gas feasibility studies. The Karuma Hydroelectric Project will use Shs34.14 billion, while rural electrification receives Shs165.29 billion. Tororo and Ntinda will benefit from Shs21.79 billion allocated to high-voltage transmission lines.
To support industrialisation, the government committed Shs275 billion for SMEs through the INVITE programme. It also budgeted Shs450 billion to implement the 2026 election roadmap under governance and security.
Still, opposition lawmakers raised concerns. Joel Ssenyonyi, Leader of the Opposition, criticised the low allocation to domestic arrears. He argued that the government violates the Buy Uganda, Build Uganda policy by failing to pay local contractors. He also questioned why officials continue to bail out struggling firms like Atiak Sugar Factory, while service providers go unpaid.
Finance State Minister Henry Musasizi defended the government’s record. He said they had reduced arrears from Shs13 trillion to Shs5.2 trillion. He added that the current Shs1.4 trillion allocation will help clear the balance within three years.
Kira Municipality MP Ibrahim Ssemujju Nganda proposed reallocating travel and workshop budgets to sectors like health, education, and agriculture. However, the majority rejected his motion. Speaker Anita Among concluded that the Finance Minister will read the Uganda national budget 2025/2026 on June 12, after the President delivers the State of the Nation Address on June 5.