Finance ministry releases national budget framework paper for FY 2025/26

The Ugandan government has released its National Budget Framework Paper (NBFP) for the financial year 2025/26, outlining a comprehensive plan to drive economic growth and development.

The theme of the NBFP is “Full Monetization of Uganda’s Economy through Commercial Agriculture, Industrialization, Expanding and Broadening Social Services, Digital Transformation, and Market Access.”

The preliminary projected Resource Envelope for FY 2025/26 stands at Shs 57.441 trillion, a reduction of Shs 14.695 trillion from the current financial year. The budget will be financed through a combination of domestic and external resources, with domestic resources expected to increase by Shs 1.7 trillion to Shs 33.68 trillion.

The economy is projected to grow by 6.4% at the end of FY 2024/25, increasing to at least 7% in FY 2025/26, and eventually reaching double digits with the onset of commercial oil and gas production.

Key drivers of growth include investments in the ten-fold economic growth areas and other prioritized sectors. These investments are expected to expand Uganda’s GDP to Shs 250.0 trillion (equivalent to USD 66.1 billion) in FY 2025/26, up from Shs 222.7 trillion (equivalent to USD 59.3 billion) in FY 2024/25.

The budget will prioritize investments in essential areas, including peace and security, infrastructure development, human capital development, international relations, and disaster management.

The government seeks to expand the economy tenfold by 2040, with a focus on agro-industrialization, tourism development, mineral-based industrial development, and science, technology, and innovation.

The National Budget Framework Paper for FY 2025/26 provides a comprehensive roadmap for Uganda’s economic growth and development.