Parliament Committees Push for Key Budget Adjustments Amid Funding Gaps
Kampala – Several parliamentary committees have called for urgent funding allocations and new revenue measures in the upcoming 2026/27 national budget, highlighting critical shortfalls in defence, regional integration, tourism, and debt management.
Defence Seeks UGX 112.2 Billion for Food Supplies
The Committee on Defence and Internal Affairs has flagged a UGX 112.2 billion shortfall in the budget for the Uganda People’s Defence Forces (UPDF) required to cover food provisions. The gap stems from an increase in existing personnel and the planned recruitment of an additional 10,000 soldiers.
The committee urged the government to prioritise this amount in the next financial year’s estimates to avoid seeking supplementary allocations later.
MEACA Requests UGX 4.3 Billion for Visibility and Retooling
The Ministry of East African Community Affairs (MEACA) is facing a significant visibility crisis, with many Ugandans unaware of the benefits of East African Community integration. The relevant committee noted that while UGX 1.6 billion is needed for public awareness, only UGX 0.4 billion has been provided, leaving a UGX 1.2 billion gap.
Additionally, the ministry requires UGX 3.193 billion for retooling—including vehicles, ICT, and furniture—to effectively represent Uganda’s interests regionally. With only UGX 0.093 billion allocated, a shortfall of UGX 3.1 billion remains.
The committee has recommended that the Ministry of Finance, Planning and Economic Development provide the needed UGX 1.2 billion for public sensitisation.
Tourism Levy Proposed to Boost Sector
To strengthen Uganda’s tourism industry, the parliamentary budget committee has recommended introducing a 5% levy on tickets purchased by international visitors.
The funds generated would support tourism product diversification, infrastructure development, skills training, destination marketing, and conservation efforts.
Concerns Over Debt Servicing and Arrears Clearance
The Budget Committee raised alarm over rising debt servicing costs, which are projected to increase from UGX 11.3 trillion in FY2025/26 to UGX 12.73 trillion in FY2026/27—a 12.4% rise. Domestic interest payments alone are estimated at UGX 10.716 trillion.
The committee warned that this shrinks fiscal space for growth-enhancing sectors.
It also noted that the allocation for domestic arrears clearance has been reduced from UGX 1.4 trillion in FY2025/26 to only UGX 200 billion in FY2026/27, contrary to the Domestic Arrears Strategy which recommends UGX 450 billion annually.
Key Recommendations:
· Government should prioritise concessional borrowing over domestic non-concessional borrowing to reduce debt servicing costs.
· At least UGX 450 billion should be allocated for domestic arrears clearance in line with existing strategies.
The recommendations are set to inform the final budgeting process as the government balances growing expenditure demands with fiscal sustainability.
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