economy 13 June 2026 Parliament of Uganda
Uganda Eyes 10.2% Economic Growth in Shs84.4 Trillion Budget
Finance Minister Henry Musasizi has presented Uganda's Shs84.4 trillion budget for the 2026/2027 financial year, targeting a robust 10.2% economic growth rate. The budget emphasizes oil production, infrastructure, agriculture, and industrial expansion to drive economic transformation. Source: https://www.parliament.go.ug/index.php/news/4463/govt-targets-102-growth-musasizi-reads-shs844-trillion-budget
Uganda’s government aims for a significant 10.2% economic growth in the upcoming financial year, as outlined in the Shs84.4 trillion budget framework presented by Minister of Finance, Henry Musasizi. The plan relies heavily on the burgeoning oil sector, ongoing infrastructure development, and advancements in agriculture and industry to propel the nation’s economic transformation.
During a parliamentary session at Kololo Independence Grounds, Musasizi reported that the economy is on a strong recovery path, supported by improved macroeconomic stability and increased investment. He highlighted low inflation, a stable exchange rate, and rising exports as key indicators of this positive trend. Commercial oil production is anticipated to be a major catalyst for a structural economic shift.
The Shs84.4 trillion budget is funded through a combination of domestic revenue, borrowing, external financing, and debt refinancing. Domestic revenue is projected at Shs45.96 trillion, with tax collections forming the largest portion. The budget allocates significant funds to key sectors, with Shs8.79 trillion earmarked for infrastructure, including the ongoing Standard Gauge Railway project, aimed at reducing transport costs and boosting regional competitiveness.
Key investments are also directed towards the oil and gas sector, with drilling activities exceeding initial requirements. The health and education sectors are set to receive Shs5.23 trillion and Shs6.66 trillion, respectively, with provisions for salary enhancements for teachers. Agriculture and wealth creation initiatives, including the Parish Development Model and Emyooga, will receive Shs2.26 trillion and Shs2.49 trillion respectively, focusing on moving households from subsistence to commercial production.
Further allocations include Shs1.14 trillion for science, technology, and innovation, and Shs1.03 trillion for industrial development to foster manufacturing and value addition. Security institutions have been allocated Shs10.21 trillion for modernization and enhanced operations. Despite public debt standing at US$34.86 billion, the Minister assured Parliament that it remains sustainable and manageable.