Uganda’s government has released a UGX 72.3 trillion national budget for the 2025/2026 financial year, laying out an ambitious plan to push the country toward full monetisation.
Finance Minister Matia Kasaija presented the budget on Thursday at Kololo Ceremonial Grounds, pledging that the new fiscal plan would center on “people and wealth creation.”
“The budget for next financial year, and over the medium term, is focused on people and wealth creation,” Kasaija said.
The government’s theme for the year reflects that goal: “Full Monetisation of Uganda’s Economy through Commercial Agriculture, Industrialisation, Expanding and Broadening Services, Digital Transformation and Market Access.”
Bigger Budget, Bigger Promises
At Shs72.3 trillion, this is one of the largest budgets in Uganda’s history. Domestic revenue is expected to fund about Shs37.2 trillion — around 60 percent — with the rest coming from borrowing and donor grants. The projected budget deficit stands at 7.6 percent of GDP.
Kasaija said the government plans to boost domestic revenue collection by tightening tax enforcement and digitising processes.
“Government plans to collect Shs37.2 trillion in domestic revenue next financial year,” he said.
He cited plans to fight smuggling, reduce corruption at the Uganda Revenue Authority (URA), and expand use of digital systems like the Electronic Fiscal Receipting and Invoicing System.
Key Sectors: Health, Education, Agriculture
Healthcare will get Shs5.87 trillion, making it one of the top funding priorities. The funds will go toward improving emergency care, upgrading Health Centre IVs, and expanding e-health systems.
“We are strengthening the National Ambulance and Emergency Care System,” Kasaija said.
The government has already distributed 20 digital X-ray machines and installed CT scanners in 14 of 16 regional referral hospitals.
In education, Shs5.04 trillion will support Universal Primary and Secondary Education, student loans, and teacher recruitment. Kasaija also confirmed that Bunyoro and Busoga universities will begin operations soon.
He said school inspections had been digitised to improve quality control.
“In order to improve compliance with quality standards, Government digitised school inspections in all public schools and TVET institutions.”
Wealth at the Grassroots
Programmes targeting economic empowerment, especially at the community level, received renewed attention. The Parish Development Model (PDM) and similar initiatives will get Shs2.43 trillion.
PDM alone will receive Shs0.59 trillion, with every parish expected to continue receiving Shs100 million each year.
“These investments are changing the lives of Ugandans by boosting household incomes, enhancing food security and creating employment opportunities,” he said.
He revealed that over 2.6 million Ugandans have already benefited from the programme, and that digital platforms like the WENDI and ZAIDI apps are helping eliminate corruption in its rollout.
Agriculture, Industry, and Oil
To support agro-industrialisation, government allocated Shs1.86 trillion. That covers agricultural research, irrigation, fertilisers, and value addition.
Kasaija pointed to the completion of 145 solar-powered irrigation schemes and the construction of 157 more.
He also highlighted the Agricultural Credit Facility, which has disbursed more than Shs1 trillion, and announced a Shs50 billion boost for the next year.
“I have provided additional capital of Shs50 billion to the Agricultural Credit Facility next financial year,” he said, noting that insurance is also available to farmers.
On the industrial front, Shs875.8 billion was earmarked for oil, gas, and mineral-based industries. Kasaija said the East African Crude Oil Pipeline is now 58 percent complete. An agreement has also been signed to build a 60,000-barrel-per-day refinery.
Once production begins in 2026, the government expects to earn between US$1 billion and US$2.5 billion annually from oil.
He added that Uganda is already saving millions on fuel imports.
“Uganda currently saves up to US$72.8 million annually on fuel imports,” he said, crediting the Uganda National Oil Company’s decision to import directly and cut out middlemen.
Tourism and Beyond
Tourism received a Shs430 billion allocation, with another Shs2.2 trillion going indirectly into roads, ICT, and security — all key to attracting visitors.
Kasaija said Uganda is rising as a MICE (Meetings, Incentives, Conferences, and Exhibitions) destination.
“Uganda now ranks 7th in Africa in MICE tourism.”
Recent figures show coffee exports have crossed the US$1.83 billion mark, and tourism earnings hit US$1.52 billion. Kasaija urged Ugandans to focus on value addition and diversify exports.
“While it took the country more than a century to reach US$1 billion in annual coffee export earnings, it has taken just one year to double these earnings,” he said.
“I therefore implore Ugandans to grow more coffee and, most importantly, add value to our coffee before we export it.”
Looking Ahead
Kasaija said economic growth is projected at 7 percent in the coming financial year, with GDP per capita expected to rise to US$1,324 — a step closer to middle-income status.
“The necessary foundation has already been established, the speed of economic transformation is destined to be faster in the medium term,” he said.
