Experts commend sh72.3 trillion budget, highlight areas for improvement

KAMPALA - Experts have continued to commend the Ministry of Finance for the 2025/26 national budget, describing it as one full of opportunities to empower Ugandans.

They, however, note that while Uganda's economic growth is encouraging, budgets must ultimately translate into impact, create jobs, clear arrears and directly unlock opportunities for entrepreneurs and households alike.

These sentiments were highlighted by ABSA Bank Uganda managing director, David Wandera, during the ABSA Post Budget breakfast meeting held this morning at the Kampala Serena Hotel under the theme: How can the 2025/26 National Budget be an enabler to businesses?”

“We must turn policy into prosperity. The 2025/26 budget opens opportunities, but it’s through insight-driven banking, tailored financing, and public-private dialogue that we unlock real transformation,” Wandera noted.

Allan Ssenyondwa, Director Policy and Advocacy at UMA welcomed the sh1.4t allocated to the sector. He explained that for a long time, manufacturers have been eluded by the 54.5% capacity utilisation vis-à-vis the financing of production.

He commended the government for implementing programmes that empower and transform the livelihood of Ugandans, adding that it is important that people are trained on financial management skills before disbursing funds.

“Are we prepared enough for the money? Have you trained the communities you are sending funds to, and what mechanisms do we have to track the impact created? As for agriculture, we cannot tell an illiterate farmer to get quality seeds, aim for the best rainy season, weed and look for the best chemicals, ensure proper post-handling of produce and then look for the market. Colonists left us cooperatives, but when we liberalised, we threw the door away and now our decisions are hurting the farmers,” Ssenyondwa explained.

Meanwhile, Garry Kizito, Manager Business Analysis at URA said this year's budget is aligned with efforts to enable businesses. He spoke to the challenges of compliance, adding that they are collaborating with taxpayers to improve compliance.

“Tax compliance is a challenge, and most taxpayers rank high on risky management, which requires us to visit them often, but now we are to conduct joint risk management and audits with them. We are more into digitisation to ensure the business community can freely see their tax details on time for proper planning,” Kizito added.
Ramathan Ggoobi, PSST, in his remarks, noted that Uganda is heavily endowed and most communities can survive comfortably without money.

He was, however, alive to the fact that despite the impact created by the PDM program, like boosting financial inclusion, there are gaps in linking all the pillars of growth to achieve effective performance.

“It is our responsibility to look after ourselves. We shouldn't think that someone in the U.S should pay taxes and treat us. We have repurposed our resources to attend to the critical needs of Ugandans.  In 1995, coffee was contributing 66% of our export earnings; today, with the large amount we are getting from coffee, it is contributing only 14% of our export earnings. Why, we diversified,” Ggoobi stated.