Uganda Eyes 10.2% Growth with Shs84.4 Trillion Budget

Uganda’s economic outlook is set for significant acceleration, with the government projecting a 10.2% growth rate for the 2026/2027 financial year. This ambitious target was outlined in the Shs84.4 trillion national budget framework presented by Minister of Finance, Henry Musasizi.

During a parliamentary sitting at Kololo Independence Grounds, Musasizi highlighted the economy’s strong recovery, attributing it to improved stability and increasing investment. He emphasized that the commencement of commercial oil production is a pivotal factor expected to catalyze a major structural economic shift.

The Shs84.4 trillion budget is funded through a mix of domestic revenue (Shs45.96 trillion), domestic borrowing (Shs11.97 trillion), external financing (Shs1.22 trillion), project funding (Shs11.27 trillion), and domestic debt refinancing (Shs13.97 trillion).

Key allocations include Shs9.71 trillion for wages and salaries and Shs33.28 trillion for non-wage recurrent expenditure, covering operational costs, service delivery, and interest payments. Development expenditure is set at Shs22.05 trillion.

Infrastructure development remains a priority, with Shs8.79 trillion earmarked for transport systems, including the ongoing Standard Gauge Railway project from Malaba to Kampala, which is expected to cut business costs. Uganda Airlines is also set to expand with eight new aircraft to boost international connectivity.

The oil and gas sector is a significant driver, with drilling activities already surpassing the requirements for initial production. Health and education sectors will receive substantial funding, with Shs5.23 trillion for health and Shs6.66 trillion for education, including provisions for salary enhancements for teachers.

Agriculture and wealth creation initiatives, such as the Parish Development Model and Emyooga, will receive Shs2.26 trillion and Shs2.49 trillion respectively, aiming to transition households from subsistence to commercial activities.

Investments in science, technology, innovation, and industrial development are also planned to foster manufacturing and value addition.

Despite a public debt of approximately Shs126.19 trillion, Musasizi assured Parliament that the debt remains sustainable. The budget aims to leverage strategic investments to drive growth and achieve Uganda’s transformation agenda.

Source: Parliament of Uganda