Parliament has approved shs 8 trillion in supplementary funding for the 2025/2026 financial year to support projects including road infrastructure, health services and agriculture.
State Minister for Finance Henry Musasizi said the expenditures were unforeseen and unavoidable during the initial budgeting process.
“We have incurred expenditures that had been unforeseen and unavoidable at the time of budgeting. These fall within the three per cent requirement and we are requesting Parliament to consider these expenditures and approve them in order to regularize the process,” said Musasizi, while seeking the Parliamentary approval during a plenary sitting.
According to the report presented by the Chairperson of the Budget Committee, Hon. Patrick Opolot Isiagi, the supplementary schedules will be funded through non-tax revenue (Shs42.96 billion), local revenue from local governments (Shs13.03 billion), domestic borrowing (Shs3.7 trillion) and external financing (Shs4.27 trillion).
Under Supplementary Schedule Shs1.65 trillion is expected to facilitate among others, funding of shortfalls created by the withdrawal of US funding to essential health services in Uganda, to avoid drug stock outs and any other health related crisis.
Further, the Ministry of Foreign Affairs will receive Shs3 billion to host the 18th Ministerial mid-term review meeting of the Non-Aligned Movement (NAM), whereas Shs6.92 billion will support recruitment expenses for newly created grant aided UgIFT seed secondary schools.
A total of Shs1.69 trillion is to be availed to the Ministry of Works and Transport under Supplementary Schedule II, to facilitate 395km of seven suspended projects including the Kampala-Jinja Highway (72 km); 533km of 11 projects under reduced progress; and nine bridge projects affected by financing constraints.
Under Supplementary Schedule III, Shs4.75 trillion will be provided to among others enable the Commission of Inquiry into the Apaa land dispute to carry out its duties with funding of Shs7.95 billion, following a Presidential directive on the matter.
The supplementary schedule will also avail up to Sh422.26 billion to purchase additional aircraft under Uganda Airlines, including two Dreamliner Boeing passenger aircraft, one Boeing freighter and two mid-range Airbus aircraft, as well as associated bridge leasing costs.
Construction of community access roads in 81 district local governments will be supported with Shs37.5 billion under the national oil seeds project, whereas the national ambulance system will be facilitated with Shs10billion, noting that most ambulances are not operational due to inadequate fuel and mechanical breakdowns.
However, in a minority report to the House, Hon. Ibrahim Ssemujju (FDC, Kira Municipality), challenged the proposed supplementary schedules over their size and character, noting repeated supplementary financing for long-standing obligations in the sectors of agriculture, works, energy, health and defence.
“Parliament is being asked to approve more than Shs6 trillion in supplementary funding. If this continues, we will soon reach a point where the annual budget is treated as a ceremonial event while the real spending happens through supplementary schedules,” Ssemujju said.
He further noted, “Road contracts that have been running for years cannot be classified as emergencies. These are predictable matters that should have been foreseen in the main budget.”
Ssemujju called for a detailed report on Uganda Airlines aircraft purchases before approval, as well as mandated quarterly implementation reports to Parliament for all approved supplementary expenditures.
