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URA’S UGX 18.2B MEDICAL MYSTERY: Taxman denies ‘medical budget’ dwarfs national hospital allocation

by James Turyasingura
April 4, 2025
in Business, News
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The Uganda Revenue Authority (URA) has refuted claims that its proposed 2025/26 budget includes UGX 18.2 billion for medical expenses. The tax body insists that the allocation has been misrepresented in media reports and discussions in Parliament.

During a parliamentary session, Kabula County MP, Hon. Enos Asiimwe, sought clarification on whether the funds were earmarked for medicine procurement or medical insurance for URA staff. However, URA spokesperson Mr. Robert Kalumba strongly rejected the notion that the Authority engages in purchasing medicines.

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“Let’s not mislead citizens. URA has never been in the business of purchasing medicine,” Kalumba stated in a message shared on X (formerly Twitter). He further explained that the budget in question is intended for various forms of insurance and compensation, not medical supplies.

“The figure in question is allocated for workman’s compensation, motor vehicle insurance, insurance for URA equipment, and physical infrastructure across the country,” Kalumba clarified.

The URA spokesperson also criticized media reports that had drawn comparisons between the tax body’s so-called ‘medicine budget’ and the budget of Mulago National Referral Hospital. He accused the media of failing to verify facts before publication.

“URA has nothing entitled ‘medicine budget.’ A further check by your team would have revealed that URA does not purchase medicines,” he stated.

URA attributes the controversy to a misinterpretation of the term “medical expenses” in budget documents. The Authority clarified that this classification primarily refers to staff medical insurance and welfare provisions, rather than any pharmaceutical-related purchases or medical facility operations.

To further counter the misinformation, URA issued a detailed breakdown of the UGX 18.2 billion expenditure. “We have also clarified with your source (@pwatchug | @centre4policy) that the proposed expenditure is not intended for purchasing medicines, as suggested. Instead, the UGX 18.2 billion will cover several expenses, including workers’ compensation, motor vehicle insurance for the fleet used to mobilize revenue nationwide, and general insurance for the Authority’s equipment and physical infrastructure (buildings) across the country, including at all One Stop Border Points.”

URA expressed concern over the rapid spread of misinformation, particularly on social media, where misleading claims about its budget have been widely shared. The Authority took to X to refute these allegations, emphasizing the importance of factual reporting.

“Please allow us to clarify that the information being shared is incorrect and misleading, especially regarding URA’s expenditure. As such, the comparison made is flawed,” URA posted.

In response to a post by social media user Robert Kalyesubula, the Authority urged the public to be more cautious when sharing unverified information. “We cannot fault you for sharing misinformation, but we kindly ask that you assist us in addressing these misunderstandings,” URA concluded.

With investigations into the source of the misinterpretation ongoing, the tax authority remains committed to ensuring transparency in its budgeting processes and public communication.

Tags: allocationcontroversymedical budgetmedical expensesnational hospitalpublic funding.staff welfaretaxmanUganda Revenue AuthorityURA

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