On Thursday, at Kololo Independence Grounds, Uganda’s Minister of Finance, Planning & Economic Development, Hon. Matia Kasaija presented the 2025/26 national budget during the 2nd sitting of the 1st meeting of the 5th session of the 11th Parliament. The theme of this year’s budget is “Full Monetisation of the Ugandan Economy through Commercial Agriculture, Industrialisation, Expanding & Broadening Services, Digital Transformation & Market Access.”
Uganda’s economy is now valued at UGX 226.3T ($61.3B) for FY2024/25, having more than tripled since 2010. It is projected to grow to UGX 254.2T ($66.1B) in FY2025/26. Real GDP growth reached 6.3% this yr & is expected to rise to 7% next yr, with double-digit growth forecast when oil production begins in 2026.
He credited the economic resilience to President Museveni’s leadership & policies. Inflation has dropped to 3.4%, the Uganda shilling appreciated by 4% yr-on-yr, & interest rates declined to an average of 17.7%. Foreign direct investment rose to $3.48B, while tourism earnings reached $1.52B.
Nonetheless, fiscal challenges remain. Domestic revenue for FY2024/25 is UGX 31.9T against UGX 51.53T in expenditure, resulting in a 7.6% budget deficit. The government aims to raise UGX 37.2T in domestic revenue for FY2025/26.
The budget places much emphasis on inclusion. The Parish Development Model, with a total investment of UGX 3.3T to date, will receive another UGX 1.059T next yr. In education, UGX 5.04T is allocated for expanding access & improving school infrastructure. The health sector, with a budget of UGX 5.87T, continues to strengthen service delivery, infrastructure & digitisation.
In agriculture, UGX 1.86T will support research, irrigation & value addition. Uganda’s coffee export earnings are expected to surpass $2B annually. The Agriculture Credit Facility & Uganda Development Bank will receive UGX 50B & UGX 1T, respectively.
Tourism is set for UGX 430B in direct investment, alongside UGX 2.2T for supportive infrastructure. The country is now ranked 7th in Africa for Meetings, Incentives, Conferences & Exhibitions (MICE) tourism.
Uganda’s oil & gas sector is also gaining momentum, with the East African Crude Oil Pipeline at 58% completion & first oil expected in 2026. Kabalega International Airport is nearly finished & Uganda expects to earn between $1-2.5B annually from oil once production begins.
The budget further boosts science, technology & innovation. Notable achievements include operationalisation of Kiira Motors Corporation in Jinja & local drug production at Dei Biopharma in Wakiso. Investments in ICT & creative industries aim to diversify Uganda’s economy & increase employment.
Kasaija concluded by affirming govt’s commitment to the Tenfold Growth Strategy & Uganda Vision 2040. “We are accelerating the journey to a $500B economy,” he said, urging all Ugandans to participate in the national transformation agenda.