Uganda Government spending overshoots budget in November on elections, roads and PDM payouts

Kampala — Government expenditure rose sharply above plan in November 2025, driven by higher spending on elections, road maintenance and grants to local governments, adding pressure to an already strained fiscal position.

According to the Performance of the Economy Report for November 2025 released by the Ministry of Finance, Planning and Economic Development, total government expenses amounted to Shs4,614.41 billion, exceeding the programmed Shs3,811.66 billion by Shs802.74 billion.

The overshoot was largely attributed to higher-than-planned spending on the purchase of goods and services, as well as grants, particularly transfers to local governments.

Expenditure on goods and services reached Shs1,234.55 billion during the month, surpassing the budget by Shs58.78 billion. The Finance ministry said the increase was mainly due to payments made to the security sector and the Electoral Commission to support election management, as well as additional funding to the Ministry of Works and Transport for maintenance of national roads.

Grants to other government agencies recorded the biggest deviation from plan. Transfers totalled Shs1,492.96 billion in November, more than double the budgeted Shs661.95 billion and exceeding the target by Shs831.01 billion.

Officials attributed the spike to payments made to Parish Development Model (PDM) savings and credit cooperatives, alongside funding for maintenance of district, urban and community access roads across the country.

Development spending also edged above projections. Government spending on the acquisition of non-financial assets amounted to Shs788.81 billion, slightly higher than the programmed Shs781.65 billion.

The increase was mainly due to payments for land acquisition for ongoing projects, as well as improvement works on roads and bridges.

Economists say the spending patterns reflect the fiscal pressures associated with election-related activities, decentralised service delivery and infrastructure demands, but warn that persistent expenditure overruns could complicate efforts to narrow the budget deficit and stabilise public debt.

The Finance ministry has previously indicated that stricter expenditure controls and improved cash management will be necessary to rein in spending and keep fiscal operations aligned with budget targets in the coming months.