Uganda’s Finance Minister, Hon. Matia Kasaija, on Thursday, June 12, 2025, presented the national budget for the Financial Year 2025/26 to Parliament, outlining a comprehensive plan to transform Uganda into a fully monetized, industrialized, and inclusive economy.
Themed “Full Monetization of the Ugandan Economy through Commercial Agriculture, Industrialization, Expanding and Broadening Services, Digital Transformation and Market Access,” the UGX 72.3 trillion budget builds on the achievements of Vision 2040 and sets priorities under the newly launched Fourth National Development Plan (NDP IV).
Accountability and a New Development Chapter
In his address, Kasaija emphasized that this year’s budget speech was not just a financial plan but also a reflection of the government’s accountability to its people.
“This marks the end of the implementation of the current NRM Manifesto and the beginning of the Fourth National Development Plan,” he stated.
He explained that the FY2025/26 budget offers a roadmap to achieving the goals of Vision 2040, with strategic focus areas in agriculture, industry, services, and digital transformation.
Kasaija highlighted that Uganda had made notable progress since Vision 2040 was launched.
“We have built a resilient, transformative, and competitive economy. Uganda is now ranked among the fastest-growing economies globally, and the Harvard Growth Lab projects us to become the fastest-growing economy by 2031,” he said.
Economic Growth and Fiscal Outlook
According to the minister, Uganda’s economy expanded from UGX 64.8 trillion in 2010/11 to UGX 226.3 trillion in FY2024/25.
This marks a historic transformation, he said, as the country met the UN criteria for graduation from Least Developed Country status in March 2024.
For the current financial year, Kasaija projected the economy would grow by 6.3%, up from 6.1% in FY2023/24, with Q3 growth alone hitting 8.6%.
“The economy is now valued at USD 61.3 billion, and in purchasing power parity terms, it stands at USD 174.2 billion,” he said. Looking ahead, Uganda is expected to post at least 7% growth in FY2025/26, with the onset of oil production projected to accelerate the country toward double-digit growth.
Kasaija reaffirmed the government’s commitment to macroeconomic stability. “Inflation has dropped to 3.4% in May 2025, down from 4.1% the previous year, due to sound monetary policy and stable fuel prices.”
He also noted that the Uganda shilling appreciated by 4%, making it the most stable currency in Africa this year.
Investing in the People
Minister Kasaija underscored that inclusive growth would remain a top priority. Over the last decade, the government has invested more than UGX 9 trillion in wealth creation programs aimed at empowering communities and unlocking productivity.
“The Parish Development Model has reached over 2.63 million beneficiaries across 8,686 parishes. Each parish now receives UGX 100 million annually, and we’ve allocated another UGX 1.059 trillion to ensure continuity,” he announced.
Programs like Emyooga, UWEP, and the Youth Livelihood Fund have also recorded notable success.
“Through Emyooga, we have disbursed UGX 660 billion, reaching over 2.4 million people engaged in productive sectors such as carpentry, tailoring, salon businesses, and coffee processing,” Kasaija said.
He also highlighted support for women and elderly citizens. “We have extended the Social Assistance Grant for Empowerment (SAGE) to nearly a million elderly Ugandans, with UGX 811 billion allocated. We are not leaving anyone behind.
Strengthening Industrialization and Export Growth
Uganda’s industrial landscape is fast evolving. “The number of manufacturing enterprises has grown from 31,757 in 2010/11 to over 50,000 today. We have added 31 new export products, ranging from pharmaceuticals and cement to electronics and steel,” Kasaija stated.
He stressed that exports had surged to USD 11.8 billion by March 2025, up from USD 9.56 billion in 2024.
“Gold remains our top export at USD 3.7 billion, followed by coffee at USD 1.83 billion. Tourism also rebounded, generating USD 1.52 billion in earnings,” he added.
The Uganda Development Bank (UDB) was highlighted as a key driver of industrial growth.
“We have capitalized UDB with UGX 1.5 trillion this year alone. It has financed UGX 2.45 trillion worth of projects across 96 districts, creating UGX 3.3 trillion in forex and UGX 3.15 trillion in profits,” Kasaija revealed.
Financing the Budget: Revenue, Deficits, and Reforms
The total expenditure for FY2025/26 is projected at UGX 72.1 trillion. Of this, domestic revenue is expected to contribute UGX 37.2 trillion, approximately 60% of the budget. Kasaija acknowledged the challenges in mobilizing revenue but promised reforms.
“We’re broadening the tax base and eliminating waste. Tax exemptions will now be limited to strategic sectors. We are also investing in digital tools to improve compliance and fight corruption in revenue collection,” he stated.
Although the budget deficit stands at 7.2% of GDP, the minister said it remains within manageable levels, with most borrowing channeled into productive investments.
“Unlike conventional theories, our borrowing has enabled UDB and other vehicles to offer affordable capital to the private sector,” he noted.
Social Services: Health, Education, and Water
Investments in health, education, and social protection continue to form the foundation of Uganda’s development approach. Kasaija announced that UGX 11.44 trillion had been earmarked for these sectors.
“We are spending UGX 5.87 trillion on health this financial year. This includes new blood banks, oxygen plants, CT scan machines, and the introduction of the malaria vaccine,” he said.
“Community health extension workers and digitized health records will also improve service delivery,” Kasaija noted.
In education, the government has allocated UGX 5.04 trillion. “We now have 166 secondary schools across the country. UPE caters to 9.2 million learners, while over 900,000 are benefiting from USE,” the minister stated.
He added that UGX 1.3 trillion had been earmarked for the construction and upgrading of stadia in preparation for the CHAN 2027 tournament.
On water and sanitation, the minister said the country had made significant strides. “Eight in every ten villages now have access to a safe water source. We are constructing 259 new solar-powered and gravity-fed water systems, especially in underserved and refugee-hosting communities,” he explained.
Empowering Agriculture and Agro-industrialization
To achieve full monetization of the economy, Kasaija reiterated the importance of value addition and agro-industrialization. “We are supporting agro-processing of products such as baby food and nutrition supplements,” he said.
The Agricultural Credit Facility (ACF) remains a vital tool for financing the sector. Since its inception, ACF has disbursed UGX 413.4 billion, supporting 14,336 beneficiaries, including over 3,500 smallholder farmers. Another UGX 50 billion is planned for this financial year,” he announced.
Moving Toward Vision 2040: A Transformational Path
Minister Kasaija concluded by emphasizing Uganda’s long-term development ambition. “With the Tenford Economic Growth Strategy, we are targeting a USD 500 billion economy by 2040. This is not a dream; it is a goal rooted in deliberate planning, leadership, and citizen participation,” he said.
He commended President Yoweri Museveni for his strategic leadership. “Under the President’s vision, we’ve achieved political stability, robust infrastructure, and human capital development.
Life expectancy has increased from 50.4 years in 2002 to 68.2 years today. Poverty has declined from 24.5% to 16.1%, and income inequality is falling.”
In his final remarks, Kasaija urged Ugandans to take full advantage of the budget’s opportunities. “The transformation of our economy cannot be driven by government alone.”
“It must be owned by our farmers, businesspeople, youth, women, and innovators. This is your budget. Let us build a fully monetized Uganda together,” he concluded.
As Uganda embarks on a new phase of socio-economic development, the 2025/26 budget sets the tone for bold reforms and inclusive growth.
With robust investments in wealth creation, social services, and industrialization, the country appears firmly on track to realize its Vision 2040 aspirations.
