Uganda eyes domestic revenue, private capital for 2027/28 budget

The Ugandan government is charting a new course for financing its national budget in the 2027/28 fiscal year, signaling a significant pivot towards self-reliance and strategic investment. The Ministry of Finance, Planning and Economic Development has announced plans to increase the reliance on domestic revenue streams and attract private capital.

This strategic shift aims to reduce dependence on external borrowing, which will be increasingly scrutinized. New loans will be reserved for projects with demonstrable economic returns, ensuring that borrowed funds contribute directly to national development and economic growth. The government also intends to expedite the utilization of concessional financing that has already been secured.

The upcoming budget faces a substantial financing requirement, with the total budget set at Shs72.4 trillion. Of this, the Uganda Revenue Authority (URA) is tasked with collecting Shs37.3 trillion from domestic sources. The remaining deficit will need to be covered through a combination of borrowing and grants, underscoring the importance of the new revenue mobilization strategies.

This move reflects a broader objective to strengthen Uganda’s fiscal position and ensure sustainable economic development by leveraging internal resources and fostering a more robust private sector contribution to national projects. The emphasis on projects with clear economic benefits suggests a more targeted approach to public spending and investment.

This article is based on information from the Daily Monitor.