On March 12, 2025, at around 7:37 PM, Parliament approved the Third Supplementary Schedule, allocating UGX 4.255 trillion. This brings the total supplementary budget for the 2024/25 fiscal year to UGX 6.548 trillion, raising concerns about the government’s fiscal discipline and financial planning.
Finance Minister Henry Musasizi informed Parliament that the government plans to borrow UGX 3.111 trillion from local commercial banks to finance the supplementary budget, while UGX 920 billion will come from an external lender. The remaining funds will be sourced from the Petroleum Fund and locally generated revenue.
“Supplementary Expenditure Schedule No. 3 will be funded through a mix of tax and non-tax revenue, additional borrowing, and external financing. Local government will receive UGX 41.116 billion in external funding, UGX 6.350 billion will come from non-tax revenue, UGX 9.537 billion from local revenue, and UGX 166.500 billion from the Petroleum Fund. Additional borrowing amounts to UGX 4.031 trillion, including UGX 920 billion in external borrowing (EUR 230 million) and UGX 3.111 trillion in domestic borrowing,” Musasizi explained.
Growing Reliance on Supplementary Budgets
During Parliament’s Budget Committee review, Sheema Municipality MP Dickson Kateshumbwa criticized the government’s repeated reliance on supplementary budgets.
“When this Parliament began, the Permanent Secretary assured us that supplementary budgeting would end. Yet, here we are again. Are we making any effort to improve? Issues like honoraria for local leaders were raised before but weren’t included in the main budget. Now they appear in the supplementary budget. Is this how we intend to proceed?” Kateshumbwa questioned.
Minister Musasizi admitted to Parliament’s concerns but attributed the problem to budgetary constraints.
“There has been a persistent inclusion of items that should be in the main budget but remain unfunded due to resource limitations. These items then resurface in supplementary budgets. However, I remain committed to improving this process. In the upcoming budget, we have prioritized recurrent expenditures that often appear in supplementary requests. I urge MPs to support efforts to minimize this challenge,” Musasizi stated.
Opposition Protests Rushed Approval
The Opposition protested the hurried approval process after the UGX 4.255 trillion supplementary budget was tabled on March 11 and scheduled for debate the following day. Erute South MP Jonathan Odur criticized the limited time for scrutiny.
“The report was uploaded just 12 minutes ago, yet we are expected to approve UGX 4.2 trillion. Even a machine requires time to process data. Parliament must not be reduced to a rubber stamp. We need adequate time to assess and explain our decisions to the public,” Odur argued.
Speaker Anita Among defended the expedited approval, citing urgent funding needs, including preparations for the African Cup of Nations (AFCON).
Odur, however, accused her of bias in favor of the government.
“If the Executive needed a legal pleader, you’ve won the medal. Parliament should not be taken for granted. If there are urgent matters, the government has the tools to plan properly rather than rushing us into approving massive expenditures,” he said.
Supplementary Budget Breakdown
Among the notable allocations in the supplementary budget:
- UGX 298 billion was approved for Italian investor Enrica Pinetti for the controversial Lubowa Specialized Hospital project, bringing total funding to UGX 774.469 billion despite opposition calls for an audit before further financing.
- UGX 115 billion was allocated to Somali investor Amina Moghe Hersi for Atiak Sugar Factory, increasing the government’s investment to UGX 668.710 billion, despite the factory not producing a single kilogram of sugar.
- UGX 367 billion was allocated to State House under classified expenditure, raising its total budget for the 2024/25 fiscal year to UGX 1.053 trillion.
Shadow Finance Minister Ibrahim Ssemujju Nganda highlighted concerns over State House’s rising budget.
“With UGX 1.053 trillion allocated, the presidency will be spending UGX 2.8 billion daily, UGX 120 million per hour, and UGX 2 million per second. In the two minutes I’ve been speaking, the President and First Lady have already spent half a billion shillings,” Ssemujju remarked.
He further warned that classified expenditure has become a loophole for siphoning public funds.
“State House initially received UGX 8 billion for classified expenditure. The two supplementary requests now total UGX 600 billion, accounting for 57% of its entire budget,” he added.
Despite opposition resistance, Parliament approved the supplementary budget, deepening concerns over Uganda’s fiscal management and government transparency.
