Julius Mukunda, the Executive Director of the Civil Society Budget Advocacy Group (CSBAG), has warned that skyrocketing debt and “moving” budget targets are threatening the nation’s ambitious growth plans.
Mukunda highlighted a startling 75% increase in the budget size over the last five years. However, he wondered whether the massive injection of money into the budget is translating into a 75% improvement in the quality of life for the average Ugandan.
Mukunda was speaking at the Parliamentary Conference Hall during the presentation of the alternative government budget priorities by the Leader of Opposition, Joel Ssenyonyi. A primary concern for CSBAG is the sustainability of the current budget financing.
With domestic sources expected to foot much of the bill, Mukunda noted that the country is increasingly trapped in a cycle of borrowing to pay back borrowing. “Your priority is where your money is,” Mukunda stated.
“And we are seeing that more than 80% of the government plan is actually for debt. Debt is beginning to bite us seriously; out of the 44 trillion, nearly 40% is going toward corporate debt, leaving very little for development expenditure.”
Mukunda also expressed frustration with the lack of “concrete numbers” in government planning, describing the national budget as a “moving target.””You get on one number, the next day it changes, and the third day it changes again.
We need concrete numbers to plan effectively.” Mukunda noted that the tax proposals targeting mobile money and smartphones, arguing they stifle financial inclusion and penalize small-scale entrepreneurs.
He criticized the 0.5% levy on mobile money transactions that does not apply equally to commercial banks.”How many banks are in our villages?” he asked, noting that the tax unfairly targets the millions of Ugandans who rely on mobile platforms for survival.
While the government has achieved 96% internet coverage with 5G towers, Mukunda pointed out a “paradox”: two out of every three Ugandans cannot afford a smartphone, which he described as a vehicle to use these digital roads.
He revealed that studies show that over 37 million connections remain locked in the 2G era. “By making smartphones expensive, you are literally paying people to stay poor,” he said, arguing that low-cost smartphones (under $100) are essential business tools, not luxury items.
On the new bill, The Protection of Sovereignty Bill, 2026, Mukunda warned that the legislation is so broad that it could classify anyone from NGOs and research institutes to WhatsApp groups as “foreign agents” if they receive external funding.
Mukunda said that if passed, the new law will reduce 20-30% direct influence, affecting eight to 10 trillion Uganda shillings annually.
He added that researchers and innovators may flee to more friendly regulatory environments, with thousands of people losing jobs. “We are all in this together,” Mukunda concluded. “But if we want to grow 10 times, we must actually do things differently.” URN