Uganda’s national budget for the Financial Year 2025/26, totaling UGX 72.38 trillion, marks a strategic shift in government spending aimed at accelerating economic transformation through a Tenfold Growth Strategy.
According to the Ministry of Finance, as emphasized by the Permanent Secretary and Secretary to the Treasury (PSST), Ramathan Ggoobi, the budget prioritizes targeted investments in productivity.
Sectors like Agro-industrialization, Tourism, Minerals, and Science & Technology under the ATMS framework, are being prioritized, along with key enablers such as infrastructure, security, and human capital development.
Budget Allocations Reflect Strategic National Priorities
The approved national budget is divided across key categories: UGX 8.56 trillion is allocated for wages and salaries, while UGX 16.12 trillion covers non-wage recurrent expenditures.
The Government of Uganda’s development funding amounts to UGX 6.91 trillion, and UGX 11.32 trillion will be sourced through external financing for development projects.
The most substantial allocation UGX 27.72 trillion, goes to debt and treasury operations, reflecting the increasing cost of servicing domestic and external debt. UGX 1.40 trillion is earmarked for arrears, and UGX 0.33 trillion represents local revenue contributions.
After accounting for debt obligations and arrears, only UGX 43.4 trillion remains for financing programs, service delivery, and development interventions highlighting the growing fiscal pressure debt continues to place on Uganda’s economy.
Q1 Budget Release: Strategic Spending Begins
Between July and September 2025, the government released UGX 17.18 trillion, representing 23.7% of the approved budget.
This Q1 expenditure is already driving public service delivery, with a focus on salaries, debt servicing, and core development areas. Wage-related expenditures received UGX 2.261 trillion, while non-wage categories were allocated UGX 4.496 trillion.
Development funding for government-led projects stood at UGX 692.88 billion, just 10% of the planned allocation, a shortfall that could affect the timely implementation of capital-intensive projects. External development financing disbursed so far stands at UGX 2.717 trillion, while UGX 6.929 trillion was dedicated to debt and treasury operations.
ATMS: The Core Engine of the Tenfold Growth Strategy
The Tenfold Growth Strategy is anchored on four high-impact sectors Agro-industrialization, Tourism, Mineral-based development, and Science, Technology and Innovation (ATMS). These sectors are expected to spur industrialization, create jobs, and expand Uganda’s export base.
In Q1, UGX 215.28 billion was released for agro-industrialization. Of this, UGX 62.41 billion supported research and institutional operations, and UGX 152.86 billion funded agricultural development projects focused on value addition and agro-processing infrastructure.
Tourism development received UGX 20.5 billion through the Ministry of Tourism and the Uganda Tourism Board. This funding is being used for sector branding, marketing, and hospitality standards enhancement. Notably, funds for the Uganda Wildlife Authority (UWA) were excluded due to its self-financing structure.
Mineral-based industrial development, including oil and gas received UGX 26 billion, split between the Ministry of Energy and Mineral Development (UGX 19.5 billion) and the Petroleum Authority of Uganda (UGX 6.5 billion).
These funds are supporting regulatory frameworks and sector coordination but exclude allocations to the Uganda National Oil Company (UNOC), which retains its revenues at source.
Science, Technology, and Innovation (STI), including ICT and the creative industry, was allocated UGX 139.13 billion. Of this, UGX 83.3 billion will fund STI infrastructure and programs under the Ministry of ICT and NITA-U, while UGX 33 billion supports artists under the Ministry of Gender. The investment aims to drive digital transformation and promote Uganda’s creative economy.
Enablers of ATMS: Security, Infrastructure, and Education
The government has also committed major funding to the enablers of ATMS, ensuring that core systems can support economic growth.
In the security sector, the Ministry of Defence and Veteran Affairs received UGX 719.12 billion, the highest in the category. The Uganda Police Force was allocated UGX 130.73 billion, and the State House was given UGX 108.38 billion.
Other key allocations include UGX 87.15 billion for the Uganda Prisons Service, UGX 111.4 billion for the Office of the President, UGX 39.2 billion for ISO, and UGX 86.9 billion for ESO.
Under infrastructure, the Ministry of Works and Transport received UGX 1.076 trillion, with UGX 942.90 billion going directly to contractors for ongoing road and transport projects.
The Ministry of Energy and Mineral Development was allocated UGX 420.76 billion, including UGX 398.75 billion for rural electrification, transmission line expansion, and energy generation projects like Karuma. Kampala Capital City Authority (KCCA) received UGX 148.32 billion to support roads and urban drainage systems.
To support human capital development, the Ministry of Education and Sports was allocated UGX 143.75 billion. This includes UGX 80.42 billion for non-wage operational activities and UGX 63.33 billion for secondary education expansion and accelerated learning programs.
Additionally, UGX 157.73 billion was allocated to public universities, the Uganda Management Institute (UMI), and the Law Development Centre (LDC).
Health and Social Development: Strategic Social Investment
In the health sector, UGX 262.88 billion was released to the Ministry of Health, with UGX 238.74 billion going toward infrastructure projects, GAVI, the Global Fund, and Karamoja region interventions.
UGX 173.96 billion was disbursed to the National Medical Stores (NMS) for purchasing essential drugs. Regional referral hospitals such as Mulago and Butabika received UGX 40.99 billion, mostly for operational costs.
The Ministry of Gender, Labour and Social Development received UGX 118.23 billion, with UGX 83.64 billion covering core operations and social grants like SAGE (Social Assistance Grants for Empowerment).
Local Governments and Revenue Authorities Strengthened
Local governments across the country were allocated UGX 382.03 billion, including UGX 342.52 billion for operations and UGX 39.5 billion for contractual obligations.
Revenue-generating agencies were also prioritized to boost domestic collections. The Uganda Revenue Authority received UGX 114.90 billion for tax administration, while UGX 9.71 billion was given to the Uganda Registration Services Bureau.
UGX 40.43 billion went to the National Citizenship and Immigration Control, and UGX 26.44 billion was released to the Uganda National Bureau of Standards to enhance compliance and trade facilitation.
Commitment to Fiscal Discipline and Service Delivery
The Ministry of Finance has directed all Accounting Officers to prioritize prompt salary payments by the 28th of every month and ensure government does not accumulate new arrears.
All contracts and payments must be executed in Uganda Shillings, and no recruitment will be permitted without budget clearance from the Ministry of Public Service.
Additionally, Finance Committee meetings are encouraged at every entity to align budget allocations with operational priorities.
Conclusion
Uganda’s FY2025/26 budget, anchored on the Tenfold Growth Strategy, demonstrates a decisive move towards sustainable development through investment in productive sectors, innovation, and social infrastructure.
While debt servicing continues to constrain available funds, the government’s commitment to fiscal discipline and targeted spending in agriculture, tourism, energy, and digital transformation lays a solid foundation for inclusive growth and long-term economic resilience.
