Uganda’s fiscal house shows a government that rakes in substantial tax revenues through the Uganda Revenue Authority (URA), yet often finds itself between a rock and a hard place when it comes to allocation efficiency, public trust, and delivering the goods in healthcare and infrastructure.
In the 2026/27 national budget of Shs84.3 trillion-the largest yet-domestic revenues are projected at around Shs44 trillion, with URA tasked to deliver about Shs40 trillion in tax revenue.
Ring-fencing a dedicated slice of these URA collections for citizens to vote on priority projects-like mending potholed roads or stocking health centres-could be the game-changer. It would tighten the screws on accountability, give taxpayers real skin in the game, and ensure public expenditure hits the nail on the head.
The government pursues an expansionary fiscal policy under the National Development Plans and the Ten-Fold Growth Strategy, emphasising agro-industrialisation, tourism, minerals, science, infrastructure, and human capital to monetise the economy.
URA does the heavy lifting, but the tax-to-GDP ratio lingers around 13-14 percent, below targets. Challenges persist: narrow tax base, exemptions letting revenue slip through the cracks, evasion, and reliance on regressive indirect taxes like VAT that hit the little guy hardest.
Digital tools and new measures aim to boost collections, yet they often deliver more bark than bite. The FY 2026/27 budget relies on these revenues plus borrowing, with debt servicing remaining a heavy burden amid rising public debt.
Allocations follow priorities like ATMS (Agro-Industrialisation, Tourism, Minerals, Science). Security and rule of law take a lion’s share at Shs10.21 trillion. Education gets Shs6.66 trillion for UPE/USE, teacher welfare, and sports infrastructure ahead of Afcon.
Health receives Shs5.23 trillion-still below Abuja targets-for maternal care, medicines, nutrition, and universal health coverage.
Infrastructure and wealth creation programmes spread resources, with overall human capital investments around Shs13.56 trillion including water and sanitation. Yet outcomes often disappoint. Low absorption turns funds into white elephants.
Corruption and leakages siphon off significant portions through scandals and waste-robbing Peter to pay Paul.
Debt pressures crowd out frontline services, leaving rural roads impassable and clinics short. Top-down decisions frequently miss citizen priorities on the ground. Citizens pay through the nose without much say, eroding trust.
It is time to put money where the mouth is. Dedicate 5-10 percent of URA collections-potentially Shs2-4 trillion-to a citizen priority fund. Via secure digital voting, local assemblies, or hybrid platforms with safeguards, Ugandans would allocate for healthcare facilities/medicines, rural roads, water, education infrastructure, or agricultural support.
This turns over a new leaf: boosting compliance when people see shillings fixing their daily realities; aligning spending with ground truths; slashing leakages through oversight; and strengthening the social contract. Precedents worldwide and Uganda’s small pilots prove it works. Implementation needs legal tweaks, independent audits, technical vetting, and phased roll-out to avoid throwing the baby out with the bathwater.
Sceptics fear fragmentation or populism, but guardrails like caps and audits keep it on the straight and narrow.
Uganda’s FY 2026/27 budget lays ambitious groundwork amid growth projections, but persistent inefficiencies, corruption risks, and debt servicing underscore the need for citizen voice. A dedicated fund honours taxpayers, enhances discipline, and delivers visible wins in priority areas.
Parliament and the Executive should pilot this. Let Ugandans steer the ship-it’s their taxes keeping the engine running.
The proof of the pudding is in the eating: responsive governance where every shilling counts. The top-down era has run its course. Giving citizens a real say turns revenues into results they can see and feel.