Uganda Sets Sights on Rapid Growth in FY 2026/27 Budget Plan

Government has outlined an ambitious economic outlook for the 2026/27 financial year, positioning it as a key launch pad for accelerated growth and long-term transformation.

Presenting the National Budget Framework Paper (BFP) for FY 2026/27 to Parliament’s Budget Committee, the State Minister for Finance (General Duties), Henry Musasizi, said Uganda is entering a phase where decisive policy choices could significantly lift the economy.

“Uganda stands at its most promising economic inflection point,” Musasizi said, noting that the coming financial year presents an opportunity to push the country closer to upper middle-income status.

He explained that the economy recorded 6.3 percent growth in FY 2024/25, with growth for the current FY 2025/26 projected at between 6.5 and 7.0 percent. Government forecasts indicate a sharper rise ahead.

“The economy is projected to grow by 10.4 percent in FY 2026/27, expanding to Shs 290.2 trillion, equivalent to about USD 76.7 billion,” Musasizi told MPs.

According to the minister, the FY 2026/27 budget will be anchored on a long-term vision to dramatically expand the size of the economy by 2040. This includes a strategy of doubling GDP every five years under the Fourth National Development Plan (NDP IV), supported by sustained investment in priority growth sectors and critical economic enablers.

Musasizi also pointed to areas that require urgent reform to support this ambition. These include tightening budget controls to curb corruption, reducing expenditure leakages in public service delivery, improving cash and liquidity management, strengthening Uganda’s credit profile, and widening sources of development financing through innovative funding mechanisms.

He disclosed that the preliminary resource envelope for FY 2026/27 is estimated at Shs 69.399 trillion, compared to Shs 72.376 trillion in the current financial year.

Earlier, Musasizi, alongside the Minister of State for Planning, Amos Lugoloobi, presented the Budget Framework Papers for Vote 008 (Ministry of Finance, Planning and Economic Development) and Vote 130 (Treasury Operations) to the Finance Committee of Parliament.

The Finance Ministry’s budget allocation for FY 2026/27 is projected at Shs 2,693.40 billion, down from Shs 2,796.77 billion this year, mainly due to the overall reduction in the national resource envelope.

Meanwhile, Shs 28,264.652 billion allocated under Vote 130 will be directed toward meeting debt service obligations, loan redemptions, and other statutory payments to ensure stability in government financial operations.