KAMPALA, January 29, 2026 — The preliminary resource envelope for the financial year [FY] 2026/27 is estimated at Shs 69.399 trillion, down from Shs 72.376trn in the current FY 2025/26, according to the Budget Framework released by the Ministry of Finance, Planning and Economic Development [MFPED].
According to the document, domestic revenues for FY 2026/27 are projected at Shs 40.090 trillion, up from Shs 36.806trn in FY 2025/26.
Discretionary funding for government, net of arrears, interest payments, and domestic debt repayments, is estimated at Shs 31.059trn for FY 2026/27, compared with Shs 32.480trn in FY 2025/26.
Domestic borrowing in FY 2026/27 is projected at Shs 8.952trn, down from Shs 11.381trn in FY 2025/26. Domestic debt refinancing [rollover] is estimated at Shs 9.68trn, compared with Shs 10.028trn in the current financial year.
External budget financing is expected to decline sharply from Shs 2.084trn in FY 2025/26 to Shs 330.97 billion in FY 2026/27. External project financing is also projected to fall to Shs 10.018trn, from Shs 11.327trn in FY 2025/26.
The FY 2026/27 budget will be financed through a mix of domestic and external resources, including tax revenues, domestic and external loans, and grants.
Government said it will prioritise borrowing from concessional sources to finance social projects, while leveraging innovative financing instruments on competitive terms to fund core infrastructure projects with high economic returns.
The fiscal authorities also plan to re-prioritise resources within the current fiscal framework to improve allocative efficiency, alongside implementing measures to boost domestic revenue mobilisation and attract foreign direct investment.
In addition, government will maintain sound fiscal and monetary policies to ensure macroeconomic stability and support improved credit ratings.
https://thecooperator.news/parliament-approves-shs-8-trillion-supplementary-budget/
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