As Uganda unveils its Shs 72 trillion budget for the 2025/26 financial year, leaders and economic observers are raising serious concerns about its realistic execution and long-term sustainability.
Despite the impressive figure, insiders argue that the fiscal space is too narrow, leaving very little actual spending power for the government to effect tangible change.
Paul Omara, a key voice in Uganda’s budgetary oversight, pointed out that a significant portion of the budget will be consumed by interest payments on debt.
This high cost of debt servicing, particularly domestic borrowing, poses a major challenge, with Omara cautioning that borrowing locally remains an expensive path with long-term ripple effects on the economy.
He emphasised that while the budget seems large, it must be assessed in the context of how much is left for productive investment after debt obligations.
“This money should be put into productive sectors,” he urged, highlighting that human capital development—including health, education, and skills training should remain the government’s top priority.
Echoing these concerns, Uthman Mayanja, an economic analyst, criticised the lack of realism in the proposed budget. He questioned the government’s track record in revenue and resource collection, casting doubt on the feasibility of meeting the ambitious targets.
“The principle to borrow commercially for productive activities isn’t being followed,” he said, warning that Uganda’s borrowing trend is increasingly failing to yield economic value, making debt repayment even more difficult.
Mayanja also reflected on the Parish Development Model (PDM) as a potential bright spot, but with caveats. “PDM is something the public can look forward to, but is it enough, or is it the best we can do?” he asked, calling for a more strategic allocation of resources to sectors that can genuinely spur growth and transform livelihoods.
Both Omara and Mayanja seem to agree: Uganda’s budget must shift focus from numbers to impact. Without a clear and disciplined investment strategy, the budget risks becoming a paper giant big in volume, yet weak in delivering real outcomes.
As the country navigates growing debt obligations and limited revenue streams, the call is clear: invest wisely, borrow responsibly, and prioritise people. Only then can the promise of Shs 72 trillion become a meaningful step toward inclusive growth.