The government has revised the budget for the Financial Year (FY) 2024/2025, making a significant upward adjustment of Shs13.502 trillion. This increase brings the initially proposed Shs58.3 trillion budget to a new total of Shs72.130 trillion. The corrigenda and addendum to the budget were first introduced yesterday morning and later upheld by the House Committee on Budget. The revised budget report was subsequently presented during a plenary session led by Speaker Anita Among. By press time, the plenary was still deliberating on the Shs72.130 trillion budget.
If approved, the new budget will represent a substantial increase of Shs19.394 trillion from the Shs52.736 trillion allocated for FY 2023/24. In his address to Parliament, Mr. Henry Musasizi, the junior Finance Minister (General Duties), highlighted the government’s priorities for the upcoming financial year. These include sustaining peace and security, maintaining roads, improving electricity transmission, and boosting Uganda’s tourism sector. Additionally, the government plans to invest in wealth creation initiatives such as the Parish Development Model (PDM) and Emyooga to tackle poverty.
The House Committee on Budget, represented by Vice Chairperson Mr. Achia Remigio, emphasized that the overall goal for the FY 2024/25 Budget Strategy is to accelerate economic growth to at least 7 percent. This growth is aimed at transitioning from a raw-materials-based economy to a manufacturing and knowledge-based economy, while also enhancing the business environment in Uganda to make it more competitive.
The budget report includes specific allocations to address critical infrastructure and development needs. For instance, Shs592.08 billion will be dedicated to mitigating flooding, traffic congestion, poor road infrastructure, and enhancing street lighting and stormwater drainage in Kampala. Additionally, Shs12.77 billion will be allocated for developing the Source of the Nile tourism infrastructure, which will include constructing modern piers, docking places for boats, and other amenities.
Further investments include Shs11.29 billion for Mt Rwenzori Tourism Infrastructure, aimed at improving trails, bridges, eco-friendly accommodations, and tourist safety measures. Shs30.95 billion is earmarked for the emoluments of cultural leaders, while Shs25 billion is set aside for the capitalization of Vision Group.
Documents signed by Mr. Musasizi indicate that these budget adjustments were approved by the Cabinet following guidance from the President. The adjustments, in line with Section 13 of the Public Finance Management Act 2015, increase the budget to Shs72.12 trillion.
The Finance Ministry’s adjustments detail additional funds for several key areas, including Shs34.10 billion for the Health Ministry to cover medical interns’ allowances, Shs119.70 billion for road improvements in Kampala, and Shs168.81 billion for the Uganda Revenue Authority (URA), with Shs64.42 billion for staff salary enhancements and recruitment.
Moreover, Shs334.30 billion is allocated for land acquisition for the Kibale Industrial Park, and Shs117 billion is designated as an initial deposit to the Confederation of African Football (Caf) for Uganda to co-host the Africa Cup of Nations (AFCON) in 2027. These funds will be managed through the National Council of Sports.
