Parliament has approved an additional Shs23.89 billion for the Uganda Revenue Authority (URA) to facilitate staff bonuses following the tax body's record-breaking revenue performance for the Financial Year 2024/25.

The approval came as part of the Shs 8.104 trillion supplementary budget passed on Tuesday, significantly altering the financial landscape for the coming year.

The government plans to borrow Shs4.278 trillion from foreign lenders and Shs3.770 trillion from local commercial banks to fund unfunded priorities in the FY 2025/26 national budget.

If executed as planned, Uganda's total budget will rise from Shs72.376 trillion to Shs78.631 trillion, intensifying concerns over the country's growing debt burden.

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Officials from the Ministry of Finance explained that the URA bonus is a statutory entitlement designed to motivate staff and sustain improved revenue performance.

URA exceeded its annual target, triggering the bonus under its performance-based reward system.

Some legislators questioned the timing of the payout amid increasing government borrowing, warning it could exacerbate fiscal pressures.

Others defended the bonus, arguing that sustained improvements in revenue collection require incentives that reward performance.

The supplementary budget will support priorities across security, health, and infrastructure.

The Ministry of Finance stressed that additional borrowing is essential to maintain critical government functions while funding ongoing development projects.

With the approval, Uganda's budgetary obligations continue to grow, likely intensifying scrutiny over debt sustainability and public spending efficiency in the months ahead.