Uganda: Election Spending and Grants Pushed Govt Expenditure Well Above Budget in November

25 December 2025
Nile Post (Kampala)
By Pedson Mumbere

Government expenditure rose sharply above planned allocations in November 2025, reflecting fiscal pressures from election-related spending, road maintenance, and additional transfers to local governments.

According to the Performance of the Economy Report for November 2025 released by the Ministry of Finance, Planning and Economic Development (MoFPED), total government spending amounted to Shs4,614.41 billion, exceeding the programmed Shs3,811.66 billion by Shs802.74 billion.

The overshoot underscores the difficulty of containing public spending amid competing national priorities.

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The deviation from the budget was largely driven by higher-than-planned spending on goods and services, as well as grants to other government entities, particularly local governments.

Expenditure on goods and services reached Shs1,234.55 billion during the month, surpassing the budget by Shs 58.78 billion.

MoFPED explained that the increase was mainly due to payments to the security sector and the Electoral Commission to support election management activities.

Additional resources were also allocated to the Ministry of Works and Transport for maintenance of national roads, highlighting continued demand for infrastructure upkeep.

Grants and transfers accounted for the largest variance from the approved budget. Transfers to other government agencies totaled Shs1,492.96 billion in November, more than double the planned Shs 661.95 billion, resulting in an overshoot of Shs831.01 billion.

Officials said the spike was driven by payments to Parish Development Model (PDM) savings and credit cooperatives, as well as funding for maintenance of district, urban, and community access roads across the country.

Development expenditure also edged slightly above projections. Spending on acquisition of non-financial assets stood at Shs788.81 billion, marginally higher than the programmed Shs781.65 billion.

The increase was mainly linked to payments for land acquisition for ongoing public projects and improvement works on roads and bridges.

Economists say the November spending patterns reflect the fiscal pressures associated with election cycles, decentralised service delivery, and sustained infrastructure investment.

However, they warn that persistent expenditure overruns could undermine efforts to narrow the budget deficit and stabilise public debt, particularly as revenue mobilisation remains constrained.

The Finance ministry has previously acknowledged the risks posed by rising expenditure and indicated that stricter spending controls, improved cash management, and closer monitoring of commitments will be necessary to keep fiscal operations aligned with approved budget targets in the coming months.

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