Uganda’s Parliament has passed a mind blowing and unheard of Shs72.136 trillion budget for the 2024/2025 financial year, an amount so astronomical it could only be compared to an epic folktale where money grows on banana trees. This new budget, approved on May 16, 2024, is an eye-watering Shs14.050 trillion more than the initial Shs58.34 trillion proposal. It seems Uganda’s economy, famed for its resilience, is now expected to pull off miracles. This is a budget far bigger than that of Kenya or Tanzania, whose economies are larger.
In a marathon session led by Speaker Anita Among, Members of Parliament engaged in a lively debate that stretched from 10:00 a.m. until nearly midnight. Each member took turns passionately arguing over how best to divide this imaginary pie. The largest chunk of the budget, Shs32.3 trillion, is expected to come from domestic revenue. Given the current state of affairs, one might wonder if this revenue includes proceeds from selling Rolexes (the street food, not the watches).
Other sources of this ambitious budget include Shs1.3 trillion from grants and loans, Shs8.9 trillion from domestic borrowing, and Shs9.5 trillion from project support. For those keeping count, that leaves Uganda juggling debt like a street performer in downtown Kampala.
From this treasure chest, Shs3.1 trillion is earmarked for external debt repayment. It’s almost as if the country has a secret money-printing press hidden somewhere. An additional Shs9.5 trillion will go to project support, Shs12 trillion for domestic refinancing, and Shs9 trillion for interest payments. If you think that’s a lot, wait until you hear the rest.
The government has allocated Shs293.9 billion for appropriation in aid, Shs603 billion to recapitalize the Bank of Uganda, Shs200 billion for domestic arrears, and Shs9.1 trillion for domestic debt repayment. It sounds like Uganda is preparing to host a spending spree worthy of a blockbuster sequel to “The Great Gatsby.”
A hefty Shs9.9 trillion (26.3 percent of the budget) is set aside for human capital development, focusing on education, healthcare, and skills development. It appears Uganda is planning to build schools and hospitals made of pure gold. Meanwhile, governance and security get a generous Shs9.1 trillion (24.2 percent), because nothing says fiscal responsibility like stockpiling funds for law enforcement and national security.
Hon. Remigio Achia, Deputy Chairperson of the Budget Committee, emphasized the need for a balance between infrastructure and human capital development. He might as well have suggested balancing on a tightrope over the River Nile. Achia also pointed out Shs362 billion for the Uganda Secondary Education Expansion Project, including the construction of 60 seed schools. It’s a noble cause, if only the funds didn’t seem like a page from a fiction novel.
The Minister of State for Finance, Hon. Henry Musasizi, outlined the plan to finance this budget, splitting hairs between appropriation and statutory expenses. Domestic revenue, budget support, and other sources were mentioned, but the specifics sounded more like a wish list to Santa Claus.
Some notable allocations include funding for the construction of Hoima and Akii-Bua stadia, ahead of the 2027 African Cup of Nations, and the start of the Standard Gauge Railway. It’s as if Uganda is planning to transform into Wakanda by the next World Cup.
Hon. Ssemujju Ibrahim Nganda and Hon. Theodore Ssekikubo voiced concerns about the public debt, which is set to reach stratospheric levels. They questioned how Uganda will manage to service this debt, let alone sustain daily operations. Hon. Geofrey Ekanya, however, defended the budget increase, citing local councillors’ ex-gratia needs as a priority. Apparently, no expense is too great when it comes to placating local officials.
Uganda’s new budget reads like an overly ambitious script for a blockbuster that will never get funded. With anti-gay laws drying up Western aid, and an economy that can barely keep the lights on, one wonders if this Shs72.136 trillion budget is an elaborate prank.
