The Ministry of Finance, Planning and Economic Development (MoFPED) has announced the release of Shs 18.43 trillion for the second quarter (Q2) of the Financial Year 2025/26, bringing the cumulative release to Shs 38.61 trillion, which represents 53.4% of the total approved budget of Shs 72.38 trillion.
The announcement was made by the Acting Permanent Secretary and Deputy Secretary to the Treasury (PSST), Mr Patrick Ocailap, during a press briefing on the Q2 expenditure releases.
Mr Ocailap emphasised that the budget for this fiscal year remains committed to the implementation of the government’s ambitious Tenfold Growth Strategy, with a focus on the key drivers known as ATMS (Agro-industrialisation, Tourism, Mineral-Based Industrial Development, and Science, Technology, and Innovation) and their Enablers.
“The budget for this financial year continues to support the implementation of the Tenfold Growth Strategy,” stated Mr Ocailap.
In a significant move to bolster grass-roots development, Shs 554 billion has been released for the Parish Development Model (PDM), ensuring a 50% release of its approved budget. Mr Ocailap noted that government initiatives such as the PDM were instrumental in driving economic expansion.
“Growth was largely driven by a sustained recovery in aggregate demand, supported by Government initiatives such as the Parish Development Model (PDM),” he said.
The PSST reported positive economic performance, with the economy growing by 6.3% in FY 2024/25, up from 6.1% in the previous year. He projected real GDP growth at 7% in FY 2025/26 and above 7% in the medium term, despite a challenging global environment. The size of the economy in nominal terms increased to Shs 227.88 trillion in FY 2024/25.
The Q2 release details highlight major allocations across strategic sectors, with Statutory Obligations and Institutions receiving substantial funding. This includes Shs 7.07 trillion for debt and treasury operations and Shs 2.132 trillion to cater for wages and salaries across the Government.
Key sectors driving the Tenfold Growth Strategy received the following allocations: agro-industrialisation (A): Shs 320 billion, tourism development (T): Shs 53.65 billion, Mineral-Based Industrial Development (M): Shs 16.64 billion, and Science, Technology, and Innovation (S): Shs 124.25 billion.
Allocations for Enablers include: Ministry of Defence and Veteran Affairs: Shs 642.85 billion, Uganda Police Force: Shs 161.65 billion, Infrastructure (Ministry of Works and Transport): Shs 1.703 trillion and Ministry of Health: Shs 471 billion.
Furthermore, Local Governments have received a total of Shs 390.78 billion, while Domestic Arrears payment efforts have been allocated Shs 187 billion for utilities, rent, and contributions to International organisations.
Addressing Accounting Officers directly, Mr Ocailap issued several directives to ensure fiscal discipline and timely service delivery: complying with the commitment to pay salaries, pensions and gratuity by the 28th day of every month as per the approved salary scales and prioritising payment of service providers on time to eliminate accumulation of domestic arrears. No committing government without a sufficient budget.”
Others are: ensuring all Contracts and payments are executed in Uganda shillings and no recruitment without clearance from the Ministry of Public Service, after ascertaining the availability of wages from the Ministry of Finance.
Mr Ocailap concluded by stressing that the budget continues to support the Tenfold Growth Strategy, underscoring the government’s focus on ATMS and Enablers.