How Uganda will finance Shs84 trillion national budget for 2026/2027

Parliament has approved a Shs84.3 trillion national budget for the 2026/2027 financial year, with the government outlining a mix of domestic revenue, borrowing, and external support to fund the spending plan amid mounting debt obligations.

The budget was passed during a sitting chaired by Speaker Anita Among on April 24, 2026, following adoption of the Appropriation Bill and the Budget Committee report.

Revenue sources

According to State Minister for Finance Henry Musasizi, the largest share of funding will come from domestic revenue, projected at Shs44.18 trillion—more than half of the total budget.

Other financing sources include:

• Domestic borrowing: Shs11.97 trillion
• External project support: Shs11.27 trillion
• Domestic refinancing: Shs13.97 trillion
• Petroleum revenues: Shs1.44 trillion
• Budget support grants: Shs1.22 trillion
• Local government revenues: Shs339 billion

Spending breakdown

Of the total expenditure, Shs47.16 trillion is allocated to discretionary spending, while Shs37.23 trillion will go to statutory obligations such as debt servicing, wages, and pensions.

Presenting the Budget Committee report, Deputy Chairperson Remigio Achia warned that a large portion of the budget is pre-committed, limiting funds available for service delivery.

Debt servicing alone is projected to consume about Shs33.4 trillion—nearly 40 percent of the total budget—making it the single largest expenditure item. Interest payments account for Shs12.4 trillion, largely driven by domestic borrowing.

Sector allocations

The budget prioritises production, industrialisation, and household income growth across key sectors:

• Agro-industrialisation: Shs2.2 trillion
• Tourism development: Shs571.5 billion
• Mineral-based industries (including oil and gas): Shs435.5 billion
• Science, technology and innovation: Shs1.1 trillion
• Wealth creation programmes: Shs2.5 trillion
• Security: Shs10.2 trillion
• Human capital development: Shs13.5 trillion
• Infrastructure: Shs10.8 trillion
• Manufacturing: Shs1.04 trillion
• Environmental protection: Shs514 billion

Additional allocations include Shs651.5 billion for justice administration and Shs1.2 trillion for legislation and oversight.

The government has also earmarked funds to address priority gaps, including road completion, rural electrification, medicines, export promotion, cattle compensation in Northern Uganda, ambulances, and maintenance.

Concerns over budget process

In a minority report, Kira Municipality MP Ibrahim Ssemujju Nganda criticised last-minute changes to the budget, accusing the government of undermining the Public Finance Management Act.

He said adjustments introduced shortly before the deadline increased the budget by Shs997 billion and reallocated Shs862 billion without clear implementation plans.

“This money is susceptible to abuse,” Ssemujju warned, arguing that major expenditure items—debt servicing, wages, administration, and classified spending—consume nearly 70 percent of the budget.

He also questioned Uganda’s Shs260.4 billion reparations to the Democratic Republic of the Congo.

Parliamentary debate

During debate, Bugiri Municipality MP Asuman Basalirwa called for funding to address sickle cell disease, citing its high prevalence in Uganda.

Speaker Among cautioned government against borrowing before conducting feasibility studies, while ICT Minister Chris Baryomunsi defended borrowing as a common global practice.

Kassanda County North MP Patrick Nsamba Oshabe proposed reallocating funds from some projects to health and education, while Western Youth MP Edson Rugumayo emphasised the need for clear, tangible outputs from budget allocations.

Meanwhile, Buhanguzi East MP Stephen Aeera raised concerns over reduced funding for Bunyoro University, which was scaled down significantly from earlier proposals.

State Minister for Sports Peter Ogwang assured Parliament that government remains committed to delivering on the university project as pledged.

The approved financing plan underscores Uganda’s continued reliance on domestic revenue mobilisation and borrowing, even as debt servicing pressures tighten fiscal space.