Overview:
Finance Ministry releases 16.5 trillion shillings for government spending but issues a stern warning to accounting officers. Fast-track public service delivery or face sanctions as Uganda enters its final 2026 election stretch.
KAMPALA, Uganda — The Ministry of Finance has released 16.5 trillion shillings for the third quarter of the 2025/26 financial year, maintaining that government spending remains on track despite the ongoing election season.
Treasury officials said there have been no funding shortfalls or diversions from the national budget. The released funds are aligned with the Fourth National Development Plan, covering both day-to-day operations and long-term infrastructure projects.
Ramathan Ggoobi, the permanent secretary and secretary to the Treasury, told reporters during a Jan. 9 briefing that accounting officers must fast-track program implementation or face sanctions. He specifically highlighted delays in salary and pension payments as a point of concern.
The 16.5 trillion shillings distribution includes 7.59 trillion shillings for treasury operations and debt servicing, 2.89 trillion shillings for non-wage recurrent costs, and 2.17 trillion shillings for wages. Development expenditure and external financing were allocated 514 billion shillings and 3.27 trillion shillings, respectively.
Ggoobi dismissed concerns that election-related costs would disrupt public services, noting that 58.1 percent of the total approved national budget has already been released at the halfway point of the financial year.
The treasury head also reported that Uganda’s economy is projected to grow between 6.5 percent and 7 percent this financial year. He noted that inflation remained stable at 3.1 percent through December 2025, which he characterized as an unusual achievement for an election year.
Economic indicators suggest continued resilience. The country recorded a balance of payments surplus of $2.37 billion for the year ending October 2025, marking a 15-year high. Additionally, foreign direct investment reached $3.5 billion, while tourism earnings recovered to $1.7 billion.
Ggoobi credited the economic stability to increased food production, stable currency and the government’s direct fuel importation through the Uganda National Oil Company.