Opposition decries heavy reliance on foreign funding in health budget

By Muhamadi Matovu | Friday, March 21, 2025
Opposition decries heavy reliance on foreign funding in health budget
MP Timothy Batuwa, the shadow health minister
Shadow Minister of Health Timothy Batuwa warned that excessive reliance on donor funds threatens the sustainability of Uganda’s healthcare system.

The opposition has raised concerns over Uganda’s heavy dependence on external financing for health sector projects in the 2025/26 National Budget.

They revealed that 82.5% of the Shs1.125 trillion allocated for health development projects will come from foreign funders.

Shadow Minister of Health Timothy Batuwa made the revelation while presenting the Alternative Ministerial Policy Statement for 2025/26 before Parliament.

He warned that excessive reliance on donor funds threatens the sustainability of Uganda’s healthcare system.

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“The Ministry of Health budget for FY 2025/26 reveals a heavy reliance on external financing. Only 17.57% of the development budget will be funded by the government,” Batuwa said.

He urged the government to prioritize domestic resource mobilization, invest in primary healthcare, and strengthen the health workforce.

He also proposed a health levy on luxury goods, mobile maternal health clinics, and expanded mental health services to boost local health financing.

The opposition also criticised what they called wasteful spending in the Presidency’s budget.

Shadow Minister for the Presidency Zaake Francis proposed reducing State House funding to Shs399.29 billion, a significant cut from the Shs1.05 trillion allocated in 2024/25.

Zaake also called for the abolition of Resident District Commissioners (RDCs) to curb unnecessary government expenditures.

Batuwa further cited the 2023 Auditor General’s Report, which warned about risks associated with overreliance on external financing.

He noted that Uganda is already struggling to meet HIV/AIDS budget obligations after USAID cut funding.

“The government must increase domestic health funding to ensure sustainability and avoid disruptions caused by shifting donor priorities,” Batuwa added.

The alternative budget proposals will be considered alongside the government’s main budget plans during the parliamentary debate.

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