Overview:
In his June 12 speech at Kololo, Finance Minister Matia Kasaija outlined how the budget prioritises education, health, infrastructure, and agro-industrialisation—pillars seen as central to transforming Uganda’s economy.
Uganda’s Financial Year 2025/26 budget, totalling UGX 72.4 trillion, has allocated substantial funding to priority sectors aimed at improving service delivery, stimulating economic productivity, and advancing social welfare.
In his June 12 speech at Kololo, Finance Minister Matia Kasaija outlined how the budget prioritises education, health, infrastructure, and agro-industrialisation—pillars seen as central to transforming Uganda’s economy.
Health Sector: UGX 5.87 Trillion
The health sector has been allocated UGX 5.87 trillion, an increase from previous years. The funding will go toward operationalising Health Centre IVs, expanding primary healthcare services, scaling up e-health systems, and strengthening nutrition and reproductive health initiatives.
The government will also continue deploying Community Health Extension Workers and construct specialised centres for cancer and cardiovascular treatment. The national ambulance and emergency referral system will be further enhanced.
Education: UGX 5.04 Trillion
The education sector will receive UGX 5.04 trillion, supporting the continuation of Universal Primary and Secondary Education, teacher recruitment, and infrastructure development. Notable allocations include:
- Construction of 116 new seed schools and expansion of 61 existing ones
- Rehabilitation of 120 traditional secondary schools and 31 special needs institutions
- Operationalisation of Bunyoro and Busoga universities
- Supply of instructional materials to improve the textbook-student ratio from 1:15 to 1:3
- Strict digital inspections of schools to enforce quality compliance
Transport and Infrastructure: UGX 6.92 Trillion
A total of UGX 6.92 trillion has been allocated for integrated transport infrastructure, covering roads, bridges, air, water, and rail transport. The government plans to operationalise Kabalega International Airport, further capitalise Uganda Airlines, and rehabilitate key aerodromes.
Investments will also support connectivity to growth centres, including industrial parks such as the Dei BioPharma facility in Matugga, the coffee processing plant in Ntungamo, and a fertiliser factory in Mpigi.
Agro-Industrialisation and Wealth Creation: UGX 2.43 Trillion
To fast-track economic transformation, the budget earmarks UGX 2.43 trillion for various wealth creation programmes. These include:
- UGX 1.059 trillion for the Parish Development Model (PDM)
- UGX 1 trillion to recapitalise Uganda Development Bank (UDB)
- Funding for Emyooga, INVITE, GROW, and skilling hubs targeting youth and women entrepreneurs
Social Protection: UGX 811 Billion for Vulnerable Groups
For senior citizens under the Social Assistance Grants for the Elderly (SAGE), the government has allocated UGX 811 billion to support nearly half a million beneficiaries. Additional funds will aid youth and women through enterprise grants and group-based initiatives.
Conclusion
The FY2025/26 budget signals Uganda’s intent to consolidate service delivery gains and accelerate economic transformation through targeted investments in people-focused sectors. While debt servicing continues to consume the largest portion of the budget, the robust allocations to education, health, infrastructure, and agriculture mark a critical effort toward sustainable development.