Govt raises 2026-27 budget projection to UGX 78.2 Trillion

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Ramathan Ggoobi, the permanent secretary to the ministry of finance and secretary to the treasury (PHOTO /Courtesy)

KAMPALA, Uganda — Uganda has increased its proposed national budget for the 2026-27 fiscal year to 78.24 trillion shillings, marking a nearly 9 trillion shilling jump from January projections.

Finance Ministry Permanent Secretary Ramathan Ggoobi announced the revised figure in a Feb. 13 circular, citing expected growth in domestic tax collection, budget support and local government revenue. The new proposal is scheduled for presentation to the parliamentary budget committee next week.

The expanded spending plan targets agriculture, industrialization and digital innovation. Ggoobi noted that the success of the 78.2 trillion shilling budget depends on strict fiscal discipline and the government’s ability to mobilize domestic resources.

“These are hard ceilings with no post-submission negotiations,” Ggoobi said in the circular, which was sent to all accounting officers. He warned that any deviation from the newly issued planning figures would be treated as a breach of discipline.

The draft estimates are due to Parliament by April 1.

The adjustment continues a trend of significant budget growth in recent years. The 2024-25 budget climbed from an initial 52.7 trillion shillings to 72 trillion shillings by the time it was finalized. Similarly, the 2025-26 estimates saw multiple upward revisions before approval.

Here is the summary table tracking the recent trend of Uganda’s national budget revisions and final figures for the last three fiscal years.

Uganda National Budget Trends (FY 2024/25 – FY 2026/27)

Financial Year Initial Proposal (BFP) Final/Current Projection Total Increase
2024/25 52.7 trillion shillings 72.1 trillion shillings 19.4 trillion shillings
2025/26 57.4 trillion shillings 72.3 trillion shillings 14.9 trillion shillings
2026/27 69.39 trillion shillings 78.24 trillion shillings 8.85 trillion shillings

Key Takeaways

  • Declining volatility: While the 2026/27 budget has seen a significant revision of 8.85 trillion shillings, the scale of upward adjustments has decreased compared to the 19.4 trillion shilling jump seen in the 2024/25 cycle.
  • Revenue drivers: The latest 78.24 trillion shilling figure for 2026/27 is primarily bolstered by an expected increase in domestic revenue collection and budget support.
  • Strategic focus: All three budget cycles have progressively increased funding for the Parish Development Model (PDM) and infrastructure projects related to the start of oil production, now projected for July 2026.

This upcoming cycle represents the second year of the National Development Plan IV, which aims to multiply the country’s economic growth tenfold. It also aligns with the current manifesto of the National Resistance Movement.

To improve efficiency, the ministry has introduced several new controls:

  • Accountability: Accounting officers face personal liability for the mismanagement of public funds.
  • Recruitment: New hiring is prohibited without written clearance from the Ministry of Public Service and confirmed funding from the Finance Ministry.
  • Digital spending: Agencies must obtain approval from the Ministry of ICT before purchasing hardware or software to prevent duplication of services.
  • Foreign aid: Governance-related agreements with development partners now require Cabinet approval.

Julius Bakunda, executive director of the Civil Society Budget Advocacy Group, criticized the ministry’s forecasting methods. He argued that the frequency of these revisions suggests the initial estimates are often inaccurate.

Conversely, Achia Remigio, deputy chairperson of the parliamentary budget committee, supported the changes, noting they incorporate previous recommendations from lawmakers.

The government also continues to prioritize the Parish Development Model. Since July 2021, 3.78 trillion shillings has been invested in the program, supporting more than 10,500 local savings groups.

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