finance 10 June 2026 Daily Monitor (Uganda)
Shs84 Trillion Budget Scrutinized: CSOs Warn of Limited Relief for Ugandans
Civil society organizations (CSOs) and economists are expressing concerns that Uganda's record Shs84.3 trillion budget for the 2026/27 financial year may not significantly alleviate the cost of living for ordinary citizens. They argue that substantial portions are allocated to debt servicing and long-term industrial projects, potentially diverting funds from critical social sectors. Source: https://www.monitor.co.ug/uganda/business/finance/csos-warn-shs84-trillion-budget-may-deliver-little-relief-to-ugandans-5491934
Uganda’s ambitious Shs84.3 trillion national budget for the upcoming fiscal year is facing scrutiny from civil society organizations (CSOs) and economists who predict it may offer little tangible relief to citizens struggling with rising costs. The largest budget in the nation’s history, themed around economic monetisation through industrialization and digital transformation, has raised questions about its direct impact on household welfare.
CSOs, including the Civil Society Budget Advocacy Group and the Centre for Policy Analysis, highlight that a significant portion of the budget is earmarked for debt servicing, which is projected to consume nearly 40 percent of total expenditure. Julius Mukunda, executive director of the Civil Society Budget Advocacy Group, noted that debt servicing alone is allocated Shs33.4 trillion. This, he warns, means that for every Shs100 collected in taxes, a quarter is spent on interest payments, potentially crowding out essential sectors like healthcare, education, and agriculture.
Concerns are mounting that investments in long-term industrialization and infrastructure, while important for future growth, may overshadow immediate needs. Experts argue that prioritizing sectors directly impacting livelihoods, such as agriculture, health, education, and job creation, would be more beneficial in the short term. For instance, the agriculture sector, the primary livelihood for over 60 percent of Ugandans, reportedly faces funding gaps for crucial initiatives like mechanization centers and breeding hatcheries, while essential services like constituency ambulances remain underfunded.
Similar funding shortfalls are noted in the education sector, with requirements for curriculum review and examiner training for the new secondary school curriculum remaining unmet. These modest funding needs are juxtaposed against the massive allocations for debt repayment, leading to calls for a re-evaluation of spending priorities.
While some legislators acknowledge the budget’s potential for economic growth and point to programs like Emyooga and the Parish Development Model as avenues for income generation, the overarching concern from advocacy groups remains the budget’s capacity to deliver immediate relief and address the pressing cost of living crisis facing ordinary Ugandans.