Shadow Finance Minister Demands Budget Restructuring

By Hakim Kanyere | Thursday, June 12, 2025
Shadow Finance Minister Demands Budget Restructuring
Finance minister Matia Kasaija with the Budget Box
One of the most alarming revelations was that only 2.7 million Ugandans own bank accounts, which is just 10% of the working-age population.

 

The Shadow Minister for Finance and Kira Municipality MP, Ibrahim Ssemujju Nganda, has called on Parliament to urgently restructure Uganda’s national budget to address the deteriorating living conditions affecting millions of citizens.

In a detailed report to Parliament about the state of the economy, the opposition legislator laid bare the grim realities facing Ugandans, citing recent statistics from the 2024 National Census and various government reports.

The MP painted a sobering picture, noting that 14.2 million Ugandans—31% of the population—do not own at least two sets of clothing or a pair of shoes, with Karamoja and Busoga emerging as the worst-hit regions.

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According to the census, 62% of Karamoja’s population has no shoes, and 37% lack basic clothing. The situation is nearly as dire in Busoga, where 33% still walk barefoot.

Citing the Uganda Bureau of Statistics (UBOS), the Shadow Minister emphasized that such deprivation is a clear indicator of economic hardship and social marginalization, severely affecting the dignity of children and adults alike.

He further highlighted Uganda’s employment crisis, revealing that only 9.4 million out of 25.1 million working-age Ugandans are employed, leaving 15.7 million people jobless.

This figure contradicts the 13% unemployment rate reported by UBOS, which translates to only 3.2 million unemployed.

“The reality is far worse,” he said, adding that even those considered employed are subjected to low wages and poor working conditions, especially in factories and farms.

Among the youth aged 10–30 years, 1.6 million are unemployed, fueling unrest and frustration.

One of the most alarming revelations was that only 2.7 million Ugandans own bank accounts, which is just 10% of the working-age population.

The Shadow Minister noted that this reflects a predominantly informal, cash-based economy with limited access to formal employment or savings systems.

Citing a 2022 report by Bank of Uganda, he said over 49% of Ugandans earn Shs150,000 or less per month, and only 0.9% earn over Shs1 million, underscoring the stark income inequality in the country.

The Shadow Minister also pointed to energy poverty, noting that 28 million Ugandans (62%) rely on firewood for cooking, contributing to environmental degradation and respiratory illnesses.

Only 25% of households use electricity for lighting, and open defecation remains prevalent, especially in Karamoja where 60% of people lack toilets.

Housing remains inadequate, with 53% of households living in single-room dwellings. In Karamoja, 70% live in overcrowded one-room structures.

Uganda’s food crisis is worsening, with 20 million Ugandans (46% of the population) suffering from moderate or severe food insecurity.

The problem is especially acute in Karamoja, Teso, and Bukedi. The Shadow Minister blamed over-reliance on rain-fed agriculture, which still dominates 98% of Uganda’s farming, with only 4% of households using irrigation.

He criticized the government's decision to slash funding for agriculture and healthcare. Parliament had allocated Shs300 billion for tractors and Shs60 billion to complete health centers, but both allocations were redirected.

Only Shs25 billion has been reinstated for each.

In his passionate appeal, the Shadow Minister urged Parliament to prioritize social welfare, job creation, and rural development.

“This budget must speak to the realities of the people—poverty, hunger, joblessness, and inadequate health care,” he declared.

He called for urgent investments in infrastructure, small-scale irrigation, affordable housing, and youth employment programs, warning that ignoring these pressing issues would only deepen Uganda’s social and economic crisis.

The address has stirred debate across political and civic platforms, with growing calls for government accountability and a people-centred budgeting approach.

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