Human capital tops spending priorities in Uganda’s Shs 84.39 trillion budget
The budget provides Shs 13.5 trillion for human capital development, covering education, healthcare, social protection programmes and skills development initiatives
KAMPALA, June 12, 2026 — Human capital development, infrastructure development, and security emerged as the biggest beneficiaries of Uganda’s Shs 84.39 trillion national budget for the 2026/2027 financial year unveiled on Thursday, as government rolled out an ambitious spending plan aimed at accelerating economic growth while tackling waste, corruption and inefficiency in public expenditure.
Presenting the budget at Kololo Ceremonial Grounds under the theme, “Full Monetisation of Uganda’s Economy through Commercial Agriculture, Industrialisation, Expanding and Broadening Services, Digital Transformation and Market Access”, Finance Minister Henry Musasizi said the country’s total resource envelope for the coming financial year stands at Shs 84.39 trillion.
He said the budget reflects government’s commitment to achieving the Tenfold Growth Strategy and transforming Uganda into a modern and prosperous economy.
The minister told Parliament that the budget is designed to support higher economic growth, create jobs, expand business opportunities and improve household incomes through targeted investments in productive sectors.
The budget provides Shs 13.5 trillion for human capital development, covering education, healthcare, social protection programmes and skills development initiatives. The allocation includes funding for improving health services, enhancing teachers’ welfare and preparations for the 2027 Africa Cup of Nations tournament.
Infrastructure development also remains one of government’s top priorities, receiving Shs 10.8 trillion to support roads, bridges, railways, energy infrastructure, water systems and transport networks aimed at improving connectivity and reducing the cost of doing business.
The security sector was allocated Shs 10.2 trillion, underscoring government’s commitment to maintaining peace and stability as a foundation for investment, tourism, trade and economic transformation.
“Peace and security remain critical for economic growth and prosperity. Government will continue investing in the security sector to safeguard lives, property and national sovereignty,” Musasizi said.
Beyond the major allocations, the budget places significant emphasis on agriculture, which the Government views as the backbone of Uganda’s economic transformation agenda.
A total of Shs 2.26 trillion has been allocated to the Agro-Industrialisation Programme, the highest allocation ever made to the sector. The funding will support agricultural research and innovation, including the commercialisation of the anti-tick vaccine, irrigation and water for production, extension services, provision of quality agricultural inputs, post-harvest handling and storage facilities, agro-processing, value addition, quality assurance and certification, as well as expanded market access for farmers.
Musasizi said the increased investment is intended to raise agricultural productivity, boost exports and improve incomes for millions of Ugandan households that depend on farming.
also allocated Shs 2.5 trillion to wealth creation initiatives, including the Parish Development Model [PDM], Emyooga and other programmes designed to integrate more citizens into the money economy.
Tourism remains another strategic sector under government’s growth agenda, with Shs 567.32 billion earmarked for development during the next financial year.
The allocation will support branding and marketing Uganda as both a tourism and investment destination, development of tourism infrastructure, construction of highway sanitation facilities and refreshment centres, enforcement of hospitality standards, training of tourism personnel, wildlife conservation, health tourism and economic diplomacy initiatives aimed at attracting more visitors and investment.
Science, Technology and Innovation, together with digital transformation programmes, will receive more than Shs1.1 trillion to support innovation, digitisation of public services and expansion of the digital economy.
Manufacturing was allocated Shs 1.04 trillion to strengthen industrialisation and value addition, while Shs435.5 billion was earmarked for mineral-based industrial development, including activities linked to Uganda’s emerging oil and gas sector.
Musasizi revealed that government expects to finance the budget largely from domestic resources, with domestic revenue projected at Shs 45.96 trillion. Of this amount, Shs 40.16 trillion will come from tax revenue, Shs 4.02 trillion from non-tax revenue, Shs 1.44 trillion from petroleum revenue and Shs 339.8 billion from local government revenue collections.
The financing framework also includes Shs 11.97 trillion in domestic borrowing, Shs 13.97 trillion for domestic debt refinancing, Shs 1.22 trillion in external borrowing for budget support and Shs 11.27 trillion in external financing for development projects.
While outlining spending priorities, the minister devoted considerable attention to what he described as a comprehensive implementation reform agenda aimed at ensuring public funds deliver tangible results.
“To achieve the Tenfold Growth Agenda, it requires more than investment. It requires discipline. It requires accountability. It requires efficiency. And it requires integrity,” Musasizi told Parliament.
He announced that government will intensify enforcement of budget discipline and accountability through a new framework requiring all accounting officers to sign accountability and budget discipline charters as part of their performance contracts.
The reforms will also target corruption through procurement reforms, digitisation of public systems, stronger internal controls, enhanced audits and greater transparency.
Government will further strengthen oversight and performance of state-owned enterprises, continue enforcing trade order and traffic discipline in urban centres, centralise management of counterpart funding under the Treasury, and implement the contributory public service pension scheme to improve long-term fiscal sustainability.
In one of the most notable austerity measures announced in the budget, Musasizi said government would eliminate expenditure on most state-funded public holiday celebrations.
“As guided by His Excellency the President, state-funded celebrations on public holidays will be suspended except functions on religious holidays. Going forward, public holidays will be observed without official ceremonies,” he said.
The minister added that government will strengthen allocative efficiency by prioritising high-impact investments while eliminating wasteful expenditure across ministries, departments and agencies.
Uganda’s economy is projected to grow by 10.2 per cent during the 2026/2027 financial year, supported by increased investment, industrial expansion, improved agricultural productivity, stronger exports and the anticipated commencement of commercial oil production.
As government embarks on implementing the Shs 84.39 trillion budget for the new FY that starts on July 1, 2026, the success of the spending plan is expected to depend not only on the resources allocated but also on the effectiveness of the sweeping accountability and implementation reforms announced by the Finance Minister to ensure that every public shilling delivers measurable value to Ugandans.
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