The Ministry of Finance has presented the National Budget Framework Paper, outlining a budget of 57 trillion shillings for the Financial Year 2025/2026.
State Minister of Finance in charge of General Duties, Henry Musasizi, stated, “Our initial resource envelope is 57.441 trillion shillings, and we will generate these funds from both domestic and external sources.”
Notably, this proposed budget is lower than the current budget for the 2024/2025 FY, which stands at 72 trillion shillings.
Musasizi also mentioned that this budget is being introduced at a time when the nation’s economy is stabilizing, and inflation has been kept in check.
“I want to emphasize to the house that Uganda’s economy has completely recovered and is on a positive growth trajectory, supported by investments in ten key economic sectors. Currently, there is a significant level of business and investment confidence in Uganda, with inflation at 2.9%, well below the target rate of 5%,” he added.
The Ministry also mentioned that no new taxes will be introduced in the upcoming financial year, but urged Ugandans to fulfill their existing tax responsibilities.
“We do not plan to implement new taxes; we will only undertake legislative actions to tidy up existing regulations, but there will be no new financial taxes introduced next year,” Musasizi stated.
However, members of parliament raised concerns about the budget’s lack of alignment with the National Development Plan 4.
Nyendo-Mukungwe MP Hon Mathias Mpuuga questioned how the Budget Paper Framework would be relevant if the National Development Plan had not been presented to the MPs.
The Deputy Speaker, Hon Thomas Tayebwa, suggested that the National Development Plan 4 ought to be presented in the House, and after this is completed, he would provide further guidance.
This guidance would help address the concerns raised by Hon. Mpuuga, ultimately ensuring that the budget aligns with the National Development Plan 4.
