Uganda Government releases first quarter budget for FY2026/27, eyes growth amid stable economy

The Government of Uganda has released Shs 23.03 trillion in expenditure limits for the first quarter of the Financial Year 2026/2027 — representing 27% of the approved national budget — with priority given to interventions aimed at accelerating economic growth, creating jobs, and improving service delivery to citizens.

Speaking during a press briefing on the expenditure releases, the Permanent Secretary and Secretary to the Treasury (PSST), Dr. Ramathan Ggoobi, said Uganda enters the new financial year from a position of strong macroeconomic stability, characterised by accelerated economic growth, low inflation, a stable Uganda Shilling, increased exports, and improving investor confidence.

Annual headline inflation averaged 3.3% in FY2025/26, down from 3.5% the previous year, though it edged up to 3.7% in June 2026 due to rising transport and energy costs linked to higher international oil prices. The shilling appreciated by 1.9% against the US dollar between May and June 2026, making it the best-performing currency in the East African Community during that period. Foreign exchange reserves strengthened to US$6.01 billion by the end of March 2026 — equivalent to four months of import cover — up from US$3.59 billion a year earlier, while export earnings climbed to US$18.04 billion in the 12 months to March 2026.

“The Quarter One expenditure releases have been carefully aligned to sustain this momentum while preserving fiscal and debt sustainability,” Dr. Ggoobi said, adding: “Every shilling released this quarter is intended to accelerate growth while preserving fiscal discipline.”

Government’s fiscal policy for the year is anchored on two objectives: financing the country’s growth drivers under the Tenfold Growth Strategy, and maintaining responsible management of public resources. Growth priorities include agro-industrialisation, tourism development, mineral beneficiation, science, technology and innovation, ICT, and the creative economy.

The PSST noted that expenditure limits have been programmed in line with expected cash flows, available financing, and the approved fiscal framework, to ensure sustainable implementation of government programmes. Government will continue to promote efficiency in spending by controlling non-essential expenditure while protecting priority programmes and strategic investments.

Priority funding areas include security, infrastructure development, human capital development, ongoing projects requiring counterpart financing, and essential operational costs for Ministries, Departments and Agencies (MDAs), Local Governments, and Uganda’s diplomatic missions abroad. Local governments alone received Shs 428.7 billion, comprising Shs 340.4 billion in conditional and unconditional grants and Shs 88.3 billion for capital development.

Dr. Ggoobi also revealed that resources have been set aside to support preparatory interventions for Uganda’s hosting of the Africa Cup of Nations (AFCON) 2027, alongside co-hosts Kenya and Tanzania.

The briefing also provided guidance to Accounting Officers on timely and effective budget execution, to ensure released funds translate into improved services for Ugandans. The theme of the FY2026/27 budget is “Full Monetization of Uganda’s Economy through Commercial Agriculture, Industrialization, Expanding and Broadening Services, Digital Transformation and Market Access.”

The PSST reaffirmed government’s commitment to budget transparency and public participation, noting that access to budget information enables citizens to understand national priorities and demand accountability in service delivery. The briefing also marked the launch of the results of the 2025 Open Budget Survey, conducted by the International Budget Partnership in collaboration with the Uganda Debt Network.

The Quarter One expenditure releases mark the commencement of implementation of government’s priorities for FY 2026/2027, with a focus on sustainable economic transformation and improved livelihoods for Ugandans.