Gov’t targets 10.4 percent growth towards middle-income status
KAMPALA, January 21, 2026 — The Government of Uganda has set its sights on accelerated economic growth in the 2026/27 financial year, with the finance ministry projecting a 10.4 percent expansion as it positions the country for a decisive leap toward upper middle-income status.
Briefing Parliament’s Budget Committee on the National Budget Framework Paper for the 2026/27 financial year [FY], State Minister for Finance in charge of General Duties Henry Musasizi said the coming financial year presents a critical moment for the economy.
“Financial year 2026/27 is Uganda’s opportunity to fast-track the qualitative leap to upper middle-income status,” Musasizi told legislators in Kampala today.
Accompanied by the Permanent Secretary and Secretary to the Treasury, Ramathan Ggoobi, the Minister said Uganda recorded GDP growth of 6.3 percent in FY 2024/25, with growth for the current FY 2025/26 projected at between 6.5 and 7.0 percent.
He said economic expansion is expected to accelerate significantly in the next financial year.
“The economy is projected to grow by 10.4 percent in FY 2026/27, increasing its size to Shs 290.2 trillion, equivalent to US$ 76.7 billion,” Musasizi said.
According to the minster, the FY 2026/27 budget will be anchored on the Fourth National Development Plan, with a long-term objective of expanding the economy tenfold by 2040 through doubling GDP every five years.
“The budget will be guided by the aspiration to expand the size of the economy tenfold before 2040, starting by doubling GDP every five years as programmed under NDP IV,” he said, adding that the strategy will be driven by sustained investments in Agro-industrialisation, Tourism, Mineral development, and Science, Technology, and Innovation [ATMS] sectors and key economic enablers.
Musasizi acknowledged that key reforms remain necessary to unlock the projected growth, including eliminating budget leakages, curbing corruption, improving cash management, strengthening sovereign credit ratings and diversifying sources of development finance.
He further revealed that the preliminary resource envelope for FY 2026/27 stands at Shs 69.399trn, down from Shs 72.376trn in the current financial year.
Musasizi said the Finance Ministry’s budget for FY 2026/27 is estimated at Shs 2,693.40bln, down from Shs 2,796.77bln in the current year, largely due to the reduced national resource envelope.
He said Shs 28,264.652bln has been allocated to cater for debt servicing, redemptions and other statutory obligations, as the government seeks to maintain fiscal stability while pursuing ambitious growth targets.
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