Parliament has approved a supplementary budget of more than Shs 1.105 trillion, just weeks before the close of the 2025/2026 financial year.
Presenting the request, the state minister for Finance (General Duties), Henry Musasizi, said the expenditure could not be deferred to the next financial year beginning next month.
The package comprises budget reallocations, additional non-tax revenue, external financing, and savings from improved cash management. Among the key allocations, the Uganda Police Force will receive Shs 132.9 billion to clear outstanding obligations, while Shs 107.52 billion has been earmarked to address wage, pension, and gratuity shortfalls across various government sectors.
Shs 72.9 billion has been allocated to the Generating Growth Opportunities and Productivity for Women Enterprises (GROW) project, financed by the World Bank.
Another Shs 40.21 billion is to cater for wages of newly recruited health workers in 19 regional referral hospitals. In addition, Shs 56.95 billion will facilitate LC I, LC II, and women council committee elections across the country, following a Cabinet directive.
Parliament further approved Shs 29.57 billion for preparatory activities ahead of the 2027 Africa Cup of Nations (AFCON), while Shs 23.21 billion was allocated as counterpart funding for wages to operationalize newly constructed schools under the Uganda Intergovernmental Fiscal Transfers (UGIFT) programme.
Musasizi explained that Shs 40.21 billion of the supplementary budget will come from reallocations within the existing budget, while Shs 6.25 billion will be raised through additional non-tax revenue.
External financing accounts for Shs 72.9 billion, with the largest share, Shs 985.8 billion, expected from improved budget execution and cash management efficiencies.
The supplementary debate also reignited controversy surrounding the Atiak Sugar Factory project, in which government has already invested at least Shs 668.7 billion. Parliament was informed that the project now requires an additional Shs 100 billion.
State minister for Industry David Bahati defended the request, saying the factory is expected to produce its first sugar in September 2026.
He argued that the investment is intended to transform northern Uganda’s economy through industrialization and job creation. Bahati also cited the installation of an irrigation system aimed at mitigating the effects of changing weather patterns and ensuring stable sugarcane production.
However, Leader of the Opposition Joel Ssenyonyi questioned the continued financing of the project, accusing government of potentially using the factory to “defraud taxpayers.”
He challenged officials to account for what the over Shs 668 billion invested so far had achieved, arguing that there was no apparent emergency to justify the project’s inclusion in the supplementary budget when production had not yet commenced.
Outgoing Kira Municipality MP and shadow Finance minister Ibrahim Ssemujju also criticized the additional allocation, noting that Parliament had approved another Shs 100 billion for Atiak Sugar Factory as recently as April 2026.
Ssemujju argued that the project’s financing structure was heavily skewed in favour of the private investor, Amina Moghe Hersi, who owns 60 per cent of the company. According to him, Hersi has invested about Shs 125 billion, while government, despite holding a 40 per cent stake, would have injected more than Shs 768 billion once the latest allocation is approved.
