Parliament has approved Uganda’s national budget estimates for the 2025/2026 financial year, amounting to Shs72.376 trillion, with infrastructure, social welfare, and enterprise development taking centre stage.
The Vice Chairperson of the Budget Committee, Remigio Achia, presented the highlights of the allocations before the House adopted the estimates.
Among the key items, the Parish Development Model has been allocated Shs1.075 trillion, while Shs100 billion will support the Emyooga initiative.
An additional Shs3 billion has been earmarked for the Jua Kali enterprise sector, with the Uganda Development Bank receiving Shs414 billion to boost affordable financing for businesses.
Lawmakers also welcomed a substantial rise in allocations for domestic arrears, jumping from Shs200 billion in the 2024/2025 financial year to Shs1.4 trillion.
“Government must develop strategies for enhancing loan absorption rates to avoid having unabsorbed loan funds at the project closure,” Achia cautioned, urging more efficient use of borrowed funds.
Other critical allocations include Shs 80 billion for cattle compensation in Acholi, Lango, and Teso sub-regions, Shs1.17 trillion for the construction of the Standard Gauge Railway, and Shs2.2 trillion for the upgrade and rehabilitation of national roads and bridges.
However, debate flared among Members of Parliament over the budget’s continued allocation to Lubowa International Hospital.
The Leader of the Opposition, Joel Ssenyonyi, questioned why funds were still being channelled to the controversial project, which has drawn criticism for lack of transparency and progress.
Despite the divisions, the passage of the budget estimates signals a key milestone in Uganda’s fiscal planning for the year ahead.
The allocations reflect the government’s stated commitment to accelerating development through investment in infrastructure, enterprise, and targeted social support.