Uganda: Finance Ministry makes concessions on budget

 

The Ministry of Finance has made key concessions to Parliament’s budget demands, marking a shift in tone after last year’s heated disagreements between lawmakers and the Executive over funding priorities.

The ministry accommodated Shs3.98 trillion in response to Parliament’s recommendations to the draft National Budget for Financial Year 2025/26.

However, questions persisted as MPs flagged repeated requests in the new budget that mirror those in last year’s supplementary allocations.

During a meeting of the Budget Committee on Tuesday, 29 April 2025, the Deputy Chairperson, Hon. Remigio Achia acknowledged what he called “encouraging” signs that government had acted on Parliament’s earlier recommendations.

He highlighted allocations to critical sectors such as healthcare, tourism, and commercial diplomacy.

“After the acrimonious disagreement of last year with us, the minister and the President, a number of recommendations we made here have been considered,” Achia said.

“For example, we were very strong on providing Shs100 billion for medicines for health centres. This time, they have taken that recommendation.” He said.

Achia also praised the ministry’s decision to allocate Shs00 billion to the Uganda National Bureau of Standards citing the agency’s pivotal role in advancing agro-industrialisation. 

“Previously, the bureau was ignored but now they have been given money for staffing, laboratory equipment and vehicles. This shows we are supporting real agro-industrialisation,” he added.

Other notable improvements included funding for the Uganda Development Corporation and enhanced support for embassies under a new commercial diplomacy initiative. 

“This is the right way to go. Let the embassies showcase our coffee, our products, our life,” Achia said.

The committee however, criticised the Ministry of Finance over what he described as recycled budget items.

Achia pointed out that allocations made in January’s supplementary budget including Shs50 billion for railway rehabilitation and Shs25.7 billion for Ministry of Lands activities had resurfaced in the new budget under identical justifications.

“That kind of thing makes you wonder whether they think we have lost our minds between January and April. It is the same text in the January supplementary, word for word,” Achia remarked.

Hon. Faith Nakut (NRM, Napak District Woman Representative) also raised the concern of the items that were captured in the current budget again appearing in next financial year’s budget.

The Minister of State for Finance (General Duties), Hon. Henry Musasizi acknowledged the oversight and promised to investigate further.

“I am happy the committee has identified this it is one of the areas we shall discuss and harmonise. We will look at the work plan, past expenditures and whether the earlier supplementary was even released to the spending agency,” he said.

Musasizi also defended the broader process noting that some recurring items were intentionally brought into the main budget to prevent future supplementary requests. 

“If they are recurrent in nature, this year we have decided to provide for them so that they become part of the budget,” he said.

Distributed by APO Group on behalf of Parliament of the Republic of Uganda.