The Independent Uganda: You get the Truth we Pay the Price
Kampala, Uganda | Julius Businge | Civil society organizations under the Civil Society Budget Advocacy Group (CSBAG) have today (June 18) urged the government to address persistent structural and implementation gaps in the 2025/26 National Budget, warning that without urgent action, key national development targets may remain unmet.
The call came during the CSO Post-Budget Dialogue held at Mestil Hotel in Kampala, under the theme “Transforming Challenges into Opportunities for People-Centered Economic Growth.”
Presenting key takeaways from the Regional Post-Budget Dialogues, Allan Ssebulime, PELUM Country Board Member emphasized that although the national budget aligns with the broader goals of Uganda’s fourth National Development Plan (NDP IV), the execution at both national and district levels reveals major shortcomings.
He acknowledged the government’s commitment to development through commercial agriculture, industrialization, social service expansion, and digital transformation, but noted that these ambitions are undermined by weak budget prioritization and limited grassroots engagement.
He welcomed the increase in domestic resource mobilization, projected at 81.5% of total revenues, which he said is crucial for reducing dependency on external aid. However, he raised concerns about the continued underfunding of sectors critical to inclusive economic transformation.
Ssebulime pointed out that production departments at the district level remain severely underfunded. For example, in Soroti District, the production department was allocated just 4.1% of the total district budget, while 89% of funds were tied to recurrent expenditures such as wages.
Similarly, in Luwero, more than 70% of the budget was consumed by salaries and non-wage costs, leaving little room for development-oriented spending. He noted that aquaculture, a sector with vast potential, has received inadequate government support.
“People in aquaculture haven’t gotten enough support from government, and that’s critical for boosting agriculture overall,” he said.
Ssebulime also highlighted that irrigation remains a key investment area if Uganda is to realize robust agricultural growth. He stated that without reliable irrigation infrastructure, farmers remain vulnerable to climate shocks, limiting productivity.
He further called on the government to address the persistent challenge of inconsistent access to quality animal and fish feed, which continues to affect farm yields and farmer incomes.
“Quality feed access and consistency is a challenge, and we urge government to support on that – it will boost household income and that of the nation,” he said.
He criticized the limited participation of local communities in budget formulation processes.
According to Ssebulime, although local governments are tasked with implementing over 70% of national programs and services, they receive only 7.6% of the national budget. He warned that this funding imbalance weakens service delivery and undermines local development. He also noted that in many districts, there is no allocation for essential operational needs for agricultural extension workers, such as fuel and motorcycle maintenance, which restricts their mobility and effectiveness.
Julius Mukunda, Executive Director of CSBAG, stressed that fiscal discipline must be a guiding principle for the 2025/26 financial year. He called for greater transparency and accountability in public finance management, urging the government to clear domestic arrears, rationalize public borrowing, and prioritize timely project completion.
“Persistent domestic arrears and rising public debt risk crowding out critical social spending,” Mukunda warned. He added that the high 19.1% interest rate currently prevailing in the country is detrimental to private sector development and is largely driven by excessive government borrowing.
“Fiscal discipline is key. Government borrowing is partly to blame for the high interest rates. We need to reverse this trend,” he said.
Participants at the dialogue emphasized that the budget should reflect the real needs of the population and recommended increased funding for local governments, stronger support for agricultural production and natural resources departments, and the establishment of more inclusive planning mechanisms to capture grassroots priorities.
The CSO Post-Budget Dialogue closed with a renewed call for collective action among government agencies, local authorities, civil society, and the general public to ensure that budget allocations deliver meaningful and sustainable development outcomes.
