Government addressing funding gaps following United States (US) aid cuts – Prime Minister (PM)

The Prime Minister, Robinah Nabbanja has revealed that the Ministry of Health is preparing a Cabinet memorandum seeking guidance from the Executive on sourcing funds to bridge the gap occasioned by withdraw of United States Agency for International Development (USAID) funding.

While addressing the House during the Prime Minister’s Time on Thursday, 06 March 2025, Nabbanja said government is also engaging international and local stakeholders, to mobilise resources to ensure continuity of HIV/AIDS interventions. “To address this crisis, an additional Shs480 billion is required to bridge the funding gap and sustain essential services,” Nabbanja said.

She said this in response to concerns by Hon. Abdulhu Byakatonda (Indep., Workers Representative) who asked about government’s plans to mitigate the impact of the US funding freeze and ensuring uninterrupted HIV treatment for.

Byakatonda observed that the aid freeze has put the jobs of 12,551 community health workers in Uganda at risk. “Uganda currently allocates only 6.5 per cent of the national budget to health. When will government fulfil its Abuja Declaration commitment to increase health funding to 15 per cent?” he asked.

On 20 January 2025, the US issued a memo pausing potentially, trillions of dollars in federal aid that was being offered by the US Agency for International Development (USAID).

In another development, the Prime Minister revealed that over Shs163 billion has been released to cater for capitation grants to government grant-aided schools for the first term of calendar year 2025.

This followed concerns by Kalungu West MP, Hon. Joseph Ssewungu on delays by the Ministry of Finance, Planning and Economic in releasing the funds needed to procure instructional materials.

The Prime Minister clarified that funds are only released during quarter one, quarter three and quarter four every financial year. “The total approved budget for the capitation grant for financial year 2024/2025 is Shs490.2 billion. During quarter one, the Ministry of Finance released Shs163.4 to local governments to cater for term three in 2024,” said Nabbanja.

She noted that the Ministry of Education and Sports initially requested local governments to halt the transfer of the funds to institutions until they validated their enrollments, which she said had been done and authority to transfer the funds to schools granted.

Distributed by APO Group on behalf of Parliament of the Republic of Uganda.

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