Uganda: Economists Demand Audit of Shs4tn Supplementary Budget

26 March 2025

Economists have raised concerns over Parliament's approval of a Shs4 trillion supplementary budget, questioning the government's fiscal discipline and long-term planning.

The funds will cover outstanding road construction certificates, security operations, and infrastructure development ahead of the 2027 Africa Cup of Nations (AFCON).

The package also includes Shs60 billion for Inspire Africa, Shs298 billion for debt servicing on the troubled Lubowa Hospital, and Shs115 billion for re-operationalising the Atiak Sugar factory.

On March 12, 2025, Parliament approved the third supplementary schedule, bringing the total supplementary budget for the 2024/2025 fiscal year to Shs6.548 trillion.

The decision has triggered scrutiny from economic experts, who argue that the government continues funding projects that have not yielded expected results despite significant investment.

Senior economist Jonan Akandwanaho criticised the allocations, particularly to projects like Lubowa Hospital and Atiak Sugar, which have faced repeated financial injections with little progress.

"We cannot keep pumping money into projects that don't have a survival plan. We have injected a lot into Atiak and Lubowa, but nothing has come out. I'm surprised we are still allocating funds to these projects," Akandwanaho said.

While the government maintains that the funds are essential for national development, critics warn that without proper oversight, the expenditures risk worsening Uganda's already substantial public debt.

Calls for an urgent audit of the funded projects are growing, as experts demand transparency and accountability in public spending.

With Uganda's economic stability and future development at stake, it remains to be seen whether the government will address these concerns or continue on its current spending trajectory.

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