The Executive Director of Civil Society Budget Advocacy Group (CSBAG), Julius Mukunda, has expressed concern over the government's budget allocation for the 2026/2027 financial year.
Speaking at the Opposition Budget Day in Parliament, Mukunda revealed that a significant 39.2% of the Shs84.2 trillion budget will go toward debt servicing, urging the government to develop a concrete borrowing plan.
"This trend is worrying for Ugandans," Mukunda said, emphasizing that it limits the government's ability to finance essential services.
He criticized the proposed tax hike on used clothes from 15% to 30%, calling it "a weird idea" without offering viable alternatives.
Mukunda also suggested extending the 0.5% Mobile Money withdrawal tax to commercial banks, highlighting the need for a more balanced approach to revenue collection.
"Government needs to collect taxes to finance its expenditure, but the question is to what extent you should tax without hurting consumption of goods and services," he said.
Uganda’s public debt has risen to Shs120 trillion, with half of it being domestic, and the government is paying 15–17% interest on domestic debt compared to 2–3% on concessional loans.
Mukunda warned that the growing domestic debt burden, persistent supplementary budgets, and low tax revenues threaten fiscal credibility and inclusive growth.