The Civil Society Budget Advocacy Group (CSBAG) has called for tighter fiscal discipline and responsible spending as Uganda prepares its FY 2026/27 National Budget Framework Paper (NBFP).
Speaking during a civil society budget dialogue at Imperial Royale Hotel in Kampala, CSBAG Executive Director Julius Mukunda warned that although the proposed national budget has grown to Shs79 trillion from Shs69 trillion, the country’s actual fiscal space remains constrained.
Mukunda noted that while domestic borrowing is projected to reduce from Shs11 trillion to Shs8 trillion and external borrowing from Shs11 trillion to Shs10 trillion, nearly half of the proposed budget will go toward debt servicing and other statutory obligations.
He explained that out of the Shs79 trillion, only about Shs33 trillion will be available for discretionary spending on government programmes and services.
He cautioned that the shrinking fiscal space comes at a time when many Ugandans are grappling with a rising cost of living and declining household incomes.
According to CSBAG, the budget must prioritize citizen welfare and focus on sectors that directly impact livelihoods.
Mukunda also criticized the growing reliance on supplementary budgets, describing the practice as a sign of weak planning and fiscal indiscipline.
He revealed that CSBAG’s review of a recent Shs8 trillion supplementary budget found that nearly 80 percent of the expenditures did not meet the legal threshold for supplementary allocation.
The dialogue further underscored the need to strengthen public investment management systems and seal financial leakages.
Mukunda challenged newly elected Members of Parliament to rigorously scrutinize government proposals and ensure greater accountability in the budgeting process.
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