Lango Demands Cutting Parliament By 300 Members

Parliament Approves Budget Allocations Amid Debt Controversy

Posted by: lukwago J in Uganda news January 31, 2025

During the recent parliamentary session, the Budget Framework Paper for the 2025-26 financial year was given the green light, with a substantial 57.4 trillion shillings allocated.

However, a significant portion, nearly half of this amount, is earmarked for managing Uganda’s mounting debt, which stands at a staggering 109.8 trillion shillings.

Kira Municipality MP, Hon. Ibrahim Ssemujju Nganda, raised poignant concerns about the allocation of 20.726 trillion shillings, constituting 35% of the budget, towards debt servicing.

Expressing his strong dissent, Ssemujju urged Parliament to reject the proposal to borrow an additional 24 billion shillings, emphasizing the urgent need to address domestic arrears amounting to a staggering 14 trillion shillings.

In a heartfelt plea, Ssemujju criticized the Government’s decision to allocate a mere 200 billion shillings for settling domestic arrears, including pension and gratuity payments.

He passionately highlighted the devastating emotional and financial toll on citizens who are awaiting their long-overdue payments, shedding light on the real human impact of fiscal mismanagement.

Moreover, Ssemujju pointed out significant discrepancies in the debt servicing figures presented to Parliament, casting doubt on the transparency and accuracy of financial data.

Luxury expenditures vs. essential needs

Despite mounting concerns over the Budget Framework Paper’s alignment with the National Development Plan 4, which extends until the 2029/2030 financial year, the document was ultimately approved.

Several lawmakers have voiced their discontent, citing potential violations of the Public Finance Management Act and questioning the government’s budget priorities.

The parliamentary approval of the Budget Framework Paper amidst the debt controversy has reignited debates on fiscal responsibility, transparency, and accountability in government spending.

As stakeholders continue to scrutinize the budget allocations and their implications on national development, the need for prudent financial management and prioritization of essential services remains paramount.

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