KAMPALA, Uganda — The Ugandan government on Thursday unveiled a record Shs84.39 trillion national budget for the 2026/27 financial year, outlining an ambitious plan to accelerate economic transformation through commercial agriculture, industrialisation, digital innovation and expanded market access.
Presenting the budget at Kololo Independence Grounds, Finance Minister Henry Musasizi said the spending plan is designed to achieve the “full monetisation” of Uganda’s economy and lay the foundation for sustained double digit growth.
The budget, themed “Full Monetisation of Uganda’s Economy through Commercial Agriculture, Industrialisation, Expanding and Broadening Services, Digital Transformation and Market Access,” is the largest in the country’s history, rising from a revised Shs72.38 trillion in the previous financial year.
It is the first budget of the new political term and aligns with the ruling National Resistance Movement manifesto, the Fourth National Development Plan and the government’s Tenfold Growth Strategy, which seeks to expand Uganda’s economy to $500 billion in the coming decades.
The presentation unfolded against a backdrop of political symbolism as opposition Members of Parliament returned to the House after an extended boycott. Dressed entirely in black, the legislators made what Kampala Woman MP Shamim Malende described as a statement through their appearance, underscoring continued concerns over governance and public accountability.
Musasizi used his maiden budget speech of the new term to paint a picture of an economy entering what he described as a new phase of growth and resilience.
Uganda’s economy is projected to grow by 6.4 percent in the current financial year, up slightly from 6.3 percent in 2024/25, with total economic output estimated at about $69.3 billion, equivalent to Shs250.4 trillion.
The government expects growth to accelerate sharply to 10.2 percent in 2026/27 following the commencement of commercial oil production later this year. If achieved, it would mark Uganda’s first return to double digit growth since the economic reforms of the 1990s.
Per capita income is projected to rise to $1,420, or about Shs5.1 million per person, further consolidating Uganda’s position above the lower middle income threshold.
Musasizi highlighted strong performance in the external sector, noting that export earnings from goods and services have nearly tripled over the past five years. Total exports reached $18.04 billion in the 12 months to March 2026, compared with $5.93 billion in 2022. Coffee exports alone generated $2.46 billion.
He also pointed to low inflation, which averaged 3.8 percent during the year, and rising foreign exchange reserves, which increased to $6 billion from $3.6 billion a year earlier. The Uganda shilling, he said, remains among Africa’s strongest freely floating currencies.
A central feature of the budget is the government’s continued focus on the ATMS sectors — Agro Industrialisation, Tourism Development, Mineral Based Industrialisation, and Science, Technology and Innovation. Together with supporting sectors, they will receive 95.6 percent of discretionary government spending.
Agro industrialisation received Shs2.26 trillion, the largest allocation ever made to the sector. The funding will support the commercialisation of the anti tick vaccine, expansion of irrigation infrastructure in areas including Kabuyanda, Atari and Wadelai, and efforts to promote value addition rather than the export of raw agricultural products.
The mineral based industrialisation sector received Shs473.5 billion as Uganda prepares for first oil. Musasizi said construction of the East African Crude Oil Pipeline and Kabalega International Airport is nearing completion. He also cited the establishment of a clinker factory in Moroto, which is expected to save the country up to $260 million annually in cement imports.
Science, technology and innovation, together with digital transformation initiatives, were allocated Shs1.14 trillion. The minister said Kiira Motors had already recorded bus sales worth Shs21.6 billion and that more than 25,000 electric vehicles had been produced locally. Internet costs have fallen significantly, while mobile money transactions increased by 29 percent to Shs392.7 trillion.
Tourism received Shs567.3 billion following a strong recovery in visitor spending. Tourism earnings reached $1.86 billion, supported by the Explore Uganda campaign and growing international recognition of the country as a travel destination.
The government also reaffirmed its commitment to household wealth creation programmes.
Musasizi said nearly Shs11 trillion has been invested in initiatives aimed at moving more Ugandans into the money economy.
Under the Parish Development Model, Shs4.4 trillion has been disbursed to all 10,589 parishes over the past five years, benefiting more than four million people. The next phase of the programme will focus on transitioning toward a self sustaining PDM Bank.
The Emyooga programme, capitalised with Shs760 billion, has established 7,148 SACCOs with more than 2.48 million members and cumulative savings exceeding Shs95 billion.
Meanwhile, the Uganda Development Bank, which has received government capitalisation of Shs1.6 trillion, has extended more than Shs2.45 trillion in financing to over 600 businesses.
To fund the ambitious spending plan, domestic revenue is projected to rise to Shs45.6 trillion, equivalent to 15.9 percent of gross domestic product, up from Shs35.7 trillion in the current financial year.
The minister defended the country’s debt position, which now stands at $34.86 billion, or approximately 53 percent of GDP. He argued that much of the borrowing has financed strategic investments, including transport infrastructure, electricity generation and agro industrialisation.
Several tax changes were announced as part of the budget package.
Parliament approved an increase in the Pay As You Earn tax free threshold from Shs235,000 to Shs335,000 per month, a move expected to increase disposable incomes for lower earning workers.
At the same time, excise duty on petrol and diesel was increased by Shs200 per litre, while duties on locally manufactured alcoholic beverages, including Uganda Waragi, were raised significantly.
The government also doubled the environmental levy on imported used clothing from 15 percent to 30 percent, a measure intended to support domestic textile and garment manufacturers.
In one of the speech’s strongest governance messages, Musasizi announced a government wide effort to eliminate wasteful spending and improve accountability.
Official state funded celebrations for public holidays have been suspended, except for religious observances. Future public holidays will be marked without government ceremonies.
The minister also directed all accounting officers to sign budget discipline and accountability charters, warning that sanctions would be imposed for misuse of public resources or failure to deliver results.
Closing the speech, Musasizi dedicated the budget to Uganda’s youth and wealth creators, arguing that the country had moved beyond planning and policy debates and must now focus on execution.
“The era of implementation and results has begun,” he said, describing the new phase of government action as “Kisanja No More Sleep.”
The budget will now be subjected to parliamentary scrutiny and appropriation before implementation begins on July 1.
