Uganda pledges to enforce budget discipline as new financial year kicks off

KAMPALA – Finance Minister Henry Musasizi has said government will prioritise efficient resource allocation, stronger revenue mobilisation and prudent borrowing in the 2026/27 financial year as it seeks to accelerate economic growth while maintaining fiscal discipline.

In a statement marking the start of the new financial year, Musasizi said fiscal policy for FY2026/27 and the medium term will be aligned with the Ten-Fold Growth Strategy and the National Development Plan IV, with emphasis on directing resources to sectors that drive economic transformation.

He said government will also remain committed to reducing the fiscal deficit and keeping public debt within sustainable levels through a series of policy measures.

Among the key priorities is strengthening domestic revenue mobilisation by broadening the tax base, improving tax administration and enhancing compliance.

According to Musasizi, domestic revenue is projected to increase to Shs45.6 trillion in FY2026/27, up from Shs35.7 trillion in the previous financial year.

The minister also said government will harness revenues from the anticipated commencement of commercial oil production by ensuring efficient, transparent management and collection of oil proceeds.

On expenditure, Musasizi said government will tighten spending controls to eliminate wastage and improve efficiency in the use of public resources.

He added that public financial management systems will be strengthened to enhance transparency and accountability across government institutions.

“As part of the performance contracts, all Accounting Officers will sign a budget discipline and accountability charter, which provides for sanctions against breaches of accountability rules in planning, budgeting and execution of public resources,” Musasizi said.

The minister further said government will continue pursuing prudent borrowing by carefully assessing financing options, prioritising concessional loans and strengthening debt portfolio management to preserve long-term fiscal sustainability.

He said the measures are intended to support implementation of government’s development priorities while ensuring macroeconomic stability throughout the 2026/27 financial year.