The Independent Uganda: You get the Truth we Pay the Price
Kampala, Uganda | THE INDEPENDENT | As the government officially kicked off the implementation of the Shs 72.1 trillion national budget for the 2025/26 financial year on July 1, leading economic experts and financial analysts have praised the direction of the new fiscal plan—but warned that its success will largely depend on execution.
During a post-budget dialogue hosted by Ernst & Young (EY), policy specialists applauded the budget’s shift toward inclusive tax reforms and its emphasis on wealth creation. They noted that the budget carries significant potential to uplift vulnerable populations, stimulate private sector growth, and lay the groundwork for long-term economic resilience.
Experts from EY Uganda, SEATINI, the Uganda Revenue Authority (URA), and other policy think tanks observed that this year’s tax measures were more people-centered than in previous years. They highlighted provisions such as targeted incentives for small and medium enterprises (SMEs), initiatives to support local manufacturing, and the bolstering of domestic revenue through rationalized tax policy and administration.
“Unlike previous budgets, the 2025/26 budget is more progressive and inclusive,” said James Mubi and Robert Mbaziira, tax partners at EY Uganda. “However, these reforms will only make a difference if matched with efficient implementation, transparency, and public accountability.”
Concerns were raised over historical bottlenecks in rolling out government programs—particularly delays in disbursement of funds, low absorption capacity by ministries and local governments, and corruption. Experts stressed the need for better inter- agency coordination and robust monitoring mechanisms to ensure that budgeted funds translate into real development outcomes.
According to the Uganda Bulletin, several stakeholders see the budget’s focus on wealth creation as timely, especially in the wake of economic recovery efforts following global disruptions. The Uganda Manufacturers Association and business leaders expressed optimism about the support given to agro-industrialisation, skilling of youth, and infrastructure development.
Yet, they also urged the Ministry of Finance and the URA to intensify taxpayer education and simplify compliance processes to broaden the tax base without stifling informal businesses.
In sum, while the 2025/26 budget has been widely welcomed as a strategic step toward inclusive economic growth, analysts agree that the government’s ability to deliver on its ambitious commitments will be the ultimate test.
