Uganda Plans $15 Billion Budget, Targets Growth Without New Taxes.
Uganda set a $15.2 billion budget for 2025-26, focusing on debt control and higher tax collection. Finance Minister Henry Musasizi told Parliament the plan marks phase one of the country's latest development vision.
The budget aims to boost factory growth, tourism, mining, and science projects. It includes funds for defense, power supply, roads, and village development schemes.
"We must balance funding vital projects with keeping our debt in check," said Budget Committee Vice Chair Remegio Achia. He noted Uganda's debt hit $25.1 billion last June, eating up a third of domestic income.
The government wants to raise $8.9 billion in taxes next year, up from $8.5 billion. To achieve this goal, tax officials plan stricter rules and digital payment systems.
Local borrowing drops to $1.1 billion from $2.4 billion under the plan. Yet foreign loans rise to $3.4 billion for major works like a new railway and city upgrades around Kampala.
Opposition leader Ibrahim Ssemujju slammed the budget's choices. He pointed to $42 million for donations and $94 million for fuel costs instead of clearing old debts.
MP Elijah Mushemeza questioned the revenue target. "We never reached $15 billion before. How can you promise it this time?" he asked.
Hoima MP Patrick Isingoma criticized health spending. He said Uganda needs cancer screening machines that are available in Kenya and India.
The Deputy Speaker asked ministers to review opposition concerns and explain which projects would start first. Minister Musasizi defended spending on uniforms for tax collectors, medical staff, and security forces as essential costs.
Uganda set a $15.2 billion budget for 2025-26, focusing on debt control and higher tax collection. Finance Minister Henry Musasizi told Parliament the plan marks phase one of the country's latest development vision.
The budget aims to boost factory growth, tourism, mining, and science projects. It includes funds for defense, power supply, roads, and village development schemes.
"We must balance funding vital projects with keeping our debt in check," said Budget Committee Vice Chair Remegio Achia. He noted Uganda's debt hit $25.1 billion last June, eating up a third of domestic income.
The government wants to raise $8.9 billion in taxes next year, up from $8.5 billion. To achieve this goal, tax officials plan stricter rules and digital payment systems.
Local borrowing drops to $1.1 billion from $2.4 billion under the plan. Yet foreign loans rise to $3.4 billion for major works like a new railway and city upgrades around Kampala.
Opposition leader Ibrahim Ssemujju slammed the budget's choices. He pointed to $42 million for donations and $94 million for fuel costs instead of clearing old debts.
MP Elijah Mushemeza questioned the revenue target. "We never reached $15 billion before. How can you promise it this time?" he asked.
Hoima MP Patrick Isingoma criticized health spending. He said Uganda needs cancer screening machines that are available in Kenya and India.
The Deputy Speaker asked ministers to review opposition concerns and explain which projects would start first. Minister Musasizi defended spending on uniforms for tax collectors, medical staff, and security forces as essential costs.
