Parliament passes sh84.3 trillion budget estimates with salary boost for public workers

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Teachers, health workers, scientists and other public servants are set for fresh salary enhancements after Parliament passed the sh84.3 trillion national budget estimates for the 2026/27 financial year.

The expenditure marks one of the largest spending plans in the country’s history. The 2026/27 budget is the first major spending plan after the 2026 general elections and will set the tone for Uganda’s next five-year development agenda.

Government says it is targeting long-term growth aimed at expanding the economy to $500 billion by 2040.

The approved estimates, passed on Friday (April 24) show an increase in government expenditure by nearly sh11.9 trillion from the current financial year (2025/26), with a significant share of the new funds directed towards wages, infrastructure, health services and industrial development.

The budget was passed despite strong objections from opposition legislators who complained of misplaced priorities, allocations and lack of accountability.

According to the documents, among the most immediate beneficiaries are workers in the public sector, with government setting aside sh1.16 trillion for wage enhancements and salary harmonisation.

The funding will target primary school teachers, secondary school arts teachers, instructors in business and technical institutions, scientists and other categories under the public service payroll.

The move is expected to ease long-standing complaints over pay disparities, especially among teachers and arts-based civil servants who have repeatedly petitioned government over lower salaries compared to science professionals.

Finance State Minister Henry Musasizi said the wage adjustments are part of a phased strategy to improve motivation, retention and service delivery in critical sectors.

Parliament passes biggest budget yet

The total budget rises from sh72.38 trillion to sh84.39 trillion, reflecting government’s aggressive spending plan under the next phase of the National Development Plan and the ruling NRM manifesto.

Musasizi told Parliament that the budget was designed to deepen monetisation of the economy through production and market expansion.

“The budget was prepared under the theme of full monetisation of Uganda’s economy through commercial agriculture, industrialisation, expanding and broadening services, digital transformation and market access,” Musasizi said.

He added that the estimates followed wide consultations with stakeholders and President Yoweri Museveni.

“The estimates for Financial Year 2026/27 amount to sh84.39 trillion, of which appropriation is sh47.16 trillion while statutory expenditure amounts to sh37.23 trillion,” he said.

He said the budget will be financed through a mix of domestic revenue, borrowing and external support.

Musasizi told the House, chaired by Speaker of Parliament Anita Among, that sh44.1 trillion will be raised through domestic revenue, sh11.9 trillion through domestic borrowing, sh11.2 trillion through project support, sh13.9 trillion through domestic refinancing, sh1.44 trillion from the Petroleum Fund, sh1.22 trillion through budget support and sh339 billion from local government revenue.

Documents further indicate that despite the wage increase, infrastructure remains one of the biggest spending priorities. Government allocated sh1.38 trillion in counterpart funding for flagship projects such as Kampala–Jinja Expressway, Standard Gauge Railway, metre gauge railway rehabilitation and electricity extension to industrial parks.

Another sh918 billion will go towards road maintenance and completion of national roads and district access roads. Kampala Capital City Authority will receive sh111 billion for roads, drainage and urban clean-up. The health sector received sh556.7 billion to strengthen referral hospitals, specialised facilities and essential medicine supplies, while higher education institutions will receive sh205 billion for infrastructure and research support.

Human Capital Development as a broader programme rises sharply from sh1.48 trillion to sh3.56 trillion, one of the biggest increases in the budget.

Manufacturing allocations surged from sh312 billion to sh1.06 trillion, while Science, Technology and Innovation receives sh200 billion, including support for Kiira Motors and locally developed products.

Digital Transformation funding also rises to sh513.9 billion.

Opposition rejects budget

During the debate, opposition MPs raised sharp criticism, especially from Kira Municipality MP Ibrahim Ssemujju, who rejected the estimates and accused government of prioritising debt, luxury spending and politically connected projects.

“This budget does not conform to the aspirations of our people as contained in the National Development Plan,” Ssemujju said in a minority report.

He argued that debt servicing was consuming too much of the national resource envelope.

“Allocated to debt servicing is Shs33.6 trillion, which is about 40 percent of the budget,” he said.

He further claimed that after wages, classified expenditure and debt obligations, only a small fraction remained for real development priorities.

“This budget needs real surgery if it is to make meaning to the population,” he said.

Leader of Opposition Joel Ssenyonyi also criticised continued public funding towards private-linked projects such as Lubowa International Specialised Hospital.

“I have always said, the money we are investing in Lubowa hospital, why don’t we give it to health centres and referral hospitals? These are already in existence,” Ssenyonyi said.

“But this specialised hospital, I don’t know when it will be completed,” he said.