Uganda Government launches 2026/27 Budget Month amid calls for more spending reforms

The Ministry of Finance, Planning and Economic Development has officially launched the 2026/27 National Budget Month ahead of the presentation of the national budget on June 13, 2026.

The Monday launch brought together government officials, civil society organizations, and development stakeholders, many of whom welcomed progress in the budget process while calling for greater transparency, expenditure reforms, and reduced domestic borrowing.

The 2026/27 budget is being prepared under the theme: “Full Monetization of Uganda’s Economy through Commercial Agriculture, Industrialization, Expanded Social Services, Digital Transformation, and Market Access.”

Speaking at the launch, Dr. Ramathan Ggoobi, Permanent Secretary and Secretary to the Treasury, said preparations for the budget began in July 2025 and involved extensive consultations across the country.

According to Ggoobi, consultations were held with the President, Cabinet, Parliament, ministries, departments and agencies, local governments, development partners, civil society organizations, the private sector, academia, community leaders, youth and women groups, persons with disabilities, and ordinary citizens.

While acknowledging the inclusiveness of the process, civil society leaders noted that several critical concerns remain unresolved.

Arthur Bainomugisha, Executive Director of ACODE (Advocates Coalition for Development and Environment), praised government efforts to tackle corruption, particularly the recent arrests of high-profile officials implicated in graft.

However, he called for closer scrutiny of Parliament’s budget allocations and expenditure, arguing that stronger oversight is needed to ensure accountability in the use of public resources. Bainomugisha said the recent corruption allegations involving Parliament highlight the need to review how funds are allocated and utilized within the institution so that public resources are managed transparently and effectively.

He also urged government to increase funding for Water for Agriculture initiatives to help farmers withstand prolonged dry spells. He further called for enhanced financing of local governments to enable them to drive economic activities and development at the grassroots level, where implementation of government programmes takes place.

Responding to concerns about local government financing, Ggoobi said the challenge is not necessarily inadequate funding but inefficiencies in the utilization of available resources. He noted that while some local governments have effectively implemented projects using allocated funds, others have struggled due to weaknesses in procurement and project management systems.

He emphasized the need for reforms, particularly in procurement processes, where significant public funds are often lost, arguing that improving procurement systems would ensure greater value for money in public spending.

Civil society organizations also commended the growing collaboration between the Ministry of Finance and non-state actors in the budget process.

Julius Mukunda, Executive Director of the Civil Society Budget Advocacy Group (CSBAG), said increased engagement between government and civil society has enhanced public participation and budget transparency.

Mukunda welcomed increased allocations to key sectors, including salary enhancements for teachers and other public servants, investments in infrastructure, sports development, and preparations for commercial oil production. He also pointed to Uganda’s improving economic growth and macroeconomic stability indicators as positive developments.

Despite these gains, Mukunda expressed concern over the persistently high expenditure on public administration. He urged government to fast-track planned public expenditure rationalization measures, including reducing spending on public events.

He further called for accelerated efforts to clear domestic arrears and address high interest rates, which continue to constrain private sector growth.

According to Mukunda, government’s heavy domestic borrowing has crowded out private businesses, particularly small and medium enterprises, as commercial banks increasingly prefer lending to government rather than businesses. He argued that high interest rates have made credit unaffordable for many businesses, limiting private sector expansion and job creation.

In response, Ggoobi assured stakeholders that government’s reliance on domestic borrowing is expected to decline as domestic revenue mobilization measures begin to generate stronger results.

He revealed that government plans to collect Shs44.5 trillion in tax revenue during the next financial year, representing approximately 52 percent of the total budget resource envelope.

Ggoobi added that anticipated oil revenues will further strengthen government finances and reduce pressure on domestic borrowing. He said future government spending would increasingly be supported by improved domestic revenue collection and oil earnings, helping address current fiscal challenges.

Meanwhile, Jane Nalunga, Executive Director of SEATINI Uganda (Southern and Eastern Africa Trade Information and Negotiations Institute), welcomed government efforts to attract foreign direct investment but stressed the need for balanced investment agreements.

Nalunga argued that while investors are often granted incentives to establish operations in Uganda, government must ensure adequate safeguards regarding labour standards, environmental protection, taxation, and profit repatriation to guarantee mutual benefits for both investors and the country.

She also welcomed the increase in funding for agro-industrialisation from Shs1.8 trillion to Shs2.26 trillion but questioned the effectiveness of spending in the sector.

According to Nalunga, significant investments in agricultural research have yet to translate into widespread dissemination of technologies and innovations that directly benefit farmers and improve productivity. She argued that increased funding should result in practical solutions reaching farmers and contributing to agricultural transformation.

Addressing these concerns, Ggoobi said government has integrated fertilizer distribution and irrigation support under the Revamp Agriculture Project to improve agricultural productivity.

He added that beyond increasing production, government is focusing on improving product quality to enhance Uganda’s competitiveness, expand market access, and ensure long-term market sustainability.