KAMPALA, October 14, 2025 – The Ministry of Finance, Planning and Economic Development [MoFPED] has announced the release of Shs 18.43 trillion for the second quarter [Q2] of the 2025/26 Financial Year [ FY ], bringing the cumulative budget release to Shs 38.61 trillion, equivalent to 53.4 percent of the approved Shs 72.38 trillion national budget.
Speaking at a press briefing held at the Ministry headquarters in Kampala, Patrick Ocailap, the Acting Permanent Secretary and Secretary to the Treasury [PSST], stated that the budget continues to prioritise key drivers of economic transformation under the Tenfold Growth Strategy. The strategy focuses on the Agro-Industrialisation, Tourism, Manufacturing, and Science [ATMS] sectors, as well as the critical enablers of growth.
Key sector allocations for Q2
Shs 7.70 trillion for debt and treasury operations
Shs 2.132 trillion for wages and salaries across government
Shs 339 billion for pension and gratuity
Parliament: Shs 223.64 billion
Judiciary: Shs 64.06 billion
ATMS Sector Breakdown
Science, Technology & Innovation [STI]:
Shs 124.25 billion was disbursed to support digital transformation, innovation, and creativity through entities such as NITA and the Ministry of ICT and National Guidance.
Agro-Industrialisation:
Shs 320 billion was allocated to fund research, operations, and development projects aimed at enhancing agricultural productivity and value addition.
Tourism Development:
Shs 53.65 billion was released to the Ministry of Tourism, Wildlife and Antiquities and the Uganda Tourism Board to strengthen destination branding, marketing, and improve hospitality standards.
Mineral-Based Industrial Development [including oil & gas]
Shs 16.64 billion was allocated to the Petroleum Authority of Uganda to support activities in the extractives sector.
Enablers of ATMS
Ministry of Defence: Shs 642.85 billion
Uganda Police Force: Shs 161.62 billion
State House: Shs 83.97 billion
Uganda Prisons Service: Shs 89.67 billion
Office of the President: Shs 111.13 billion
Internal Security Organisation (ISO): Shs 34.59 billion
External Security Organisation (ESO): Shs 18.56 billion
Electoral Commission: Shs 52.71 billion, completing the full release of the Shs 450 billion budget for the electoral roadmap
Economic outlook remains positive
Ocailap reported that Uganda’s economy grew by 6.3 percent in FY 2024/25, up from 6.1 percent the previous year, with nominal GDP expanding to Shs 227.88 trillion, up from Shs 203.71 trillion in FY 2023/24. This growth was largely attributed to a sustained recovery in aggregate demand, supported by government initiatives such as the Parish Development Model [PDM].
Looking ahead, the economy is projected to grow by 7 percent in FY 2025/26, with medium-term growth expected to surpass 7 percent, driven by ongoing infrastructure investments, recovery in regional and global markets, and a more diversified production base.
“The economy continues to expand despite a challenging global environment marked by tighter financial conditions and geopolitical tensions disrupting global supply chains,” said Ocailap.
Call for fiscal discipline
The Acting PSST urged all accounting officers to observe the following:
Ensure timely payment of salaries, pensions, and gratuities by the 28th of every month
Prioritise payments to service providers to prevent the accumulation of domestic arrears
Avoid committing government funds without adequate budgetary provision
Execute all contracts and payments in Uganda Shillings
Seek clearance from the Ministry of Public Service before undertaking any new recruitment
Convene regular Finance Committee meetings to align spending priorities with the approved budget and available resources
Ocailap emphasised that strict adherence to public finance management practices is essential for sustaining macroeconomic stability and achieving Uganda’s national development goals.
Sector Contributions to GDP [FY 2024/25]
Services: 42.1 percent
Agriculture: 26.1 percent
Industry: 24.3 percent
Buy your copy of thecooperator magazine from one of our country-wide vending points or an e-copy on emag.thecooperator.news
