Uganda's newly proposed Shs72 trillion budget for the 2025/26 financial year has ignited sharp criticism from opposition lawmakers and economic experts, raising alarm over the country's ballooning debt burden and the government's spending priorities.
In a minority report presented to Parliament, MP Ibrahim Ssemujju condemned the government's "obsessive borrowing," citing costly ventures like the controversial Lubowa hospital project, which he described as a luxury Uganda cannot afford.
His remarks follow a Bank of Uganda report from 2023, which revealed that 32% of the country's tax revenue is now consumed by debt servicing.
"This budget reflects a government more focused on prestige than public welfare," Ssemujju said, warning that Uganda is mortgaging its future for short-term, high profile gains.
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The budget marks a staggering leap from Shs58 trillion in 2023 to Shs72 trillion in 2024, mirroring a broader trend among developing nations trapped in rising debt due to high global interest rates.
The World Bank's 2023 International Debt Report cautioned that many such countries, including Uganda, are veering toward crisis as debt obligations increasingly crowd out essential social services like health and education.
Further compounding Uganda's financial strain is President Museveni's recent military and diplomatic involvement in neighbouring South Sudan.
The April 2025 intervention, while aimed at stabilizing the region, has raised eyebrows at home amid concerns that national resources are being diverted from urgent domestic needs.
Critics argue that Uganda's economic strategy risks deepening inequality and leaving critical sectors underfunded.
"This is not just a numbers issue it's a question of national priorities," said political economist Sarah Kaggwa.
"We're spending more on debt and diplomacy than on our own people."
As Parliament debates the proposed budget, the spotlight remains firmly fixed on how Uganda will navigate its growing financial commitments and whether the voices warning of a debt crisis will finally be heeded.
