Kampala — Parliament has approved Uganda’s national budget for the 2026/27 financial year, setting total expenditure at Shs 84.39 trillion under a growth-focused framework aimed at accelerating economic transformation and preparing the country for projected oil production.
According to the Ministry of Finance, Planning and Economic Development, the approved budget comprises Shs 47.16 trillion in appropriation and Shs 37.23 trillion in statutory expenditure.
The announcement was shared by the ministry following deliberations in Parliament, where officials outlined the financing structure and long-term economic outlook.
The government said the budget will be financed through multiple sources, including domestic revenue of Shs 44.18 trillion, domestic borrowing amounting to Shs 11.97 trillion, project support of Shs 11.27 trillion, budget support of Shs 1.22 trillion, petroleum fund contributions of Shs 1.44 trillion, domestic refinancing of Shs 13.97 trillion, and Shs 339 billion from local government revenues.
The diversified financing strategy is intended to support the implementation of key development priorities while maintaining fiscal stability. The theme for the 2026/27 financial year has been set as “Full Monetisation of Uganda’s Economy through Commercial Agriculture, Industrialisation, Expanding and Broadening Services, Digital Transformation and Market Access.”
Minister of State for Finance (General Duties) Henry Musasizi told Parliament that the new budget marks a key transition point in national planning.
He noted that the financial year will be the first year of implementing the ruling party’s 2026–2031 manifesto and the second year of the Fourth National Development Plan (NDP IV), which underpins Uganda’s long-term economic strategy.
“This budget will focus on consolidating the gains so far achieved,” Musasizi said, adding that priority will be placed on the ATMS pillars and key development enablers.
The Ministry of Finance also projected continued economic expansion, citing improved macroeconomic conditions and anticipated oil production.
Musasizi told the parliamentary Budget Committee that economic growth is expected to rise to 7 percent in FY 2025/26, up from 6.3 percent in the previous year. “Once oil production begins later this year, double-digit growth is projected,” he said.
For FY 2026/27, GDP is projected to grow by 10.4 percent, increasing the size of Uganda’s economy to approximately USD 80.8 billion (about Shs 291.4 trillion).
He further stated that by June 2026, the economy is expected to expand to USD 68.4 billion, equivalent to USD 194.2 billion in purchasing power parity terms.
GDP per capita is projected to rise to USD 1,399 (about Shs 5.03 million) in the current financial year. The budget aligns with Uganda’s broader ambition of expanding the economy to USD 500 billion by 2040 under the country’s long-term development strategy.
The Ministry of Finance said the FY 2026/27 budget will prioritise industrialisation, commercial agriculture, service sector expansion, digital transformation, and improved market access as key drivers of growth.
Parliament’s approval now clears the way for implementation of the new financial year, which the government describes as a critical phase in transitioning Uganda into a higher-income economy.