KAMPALA, June 12, 2025 –– Finance Minister Matia Kasaija is set to present to Parliament the Shs 72.376 trillion National Budget for the financial year 2025/26, which kicks off on July 1, 2025. The Budget will be read at the Kololo Ceremonial Grounds in Kampala
The budget aligns with the overarching theme of “Full Monetisation of Uganda’s Economy”, focusing on sectors such as commercial agriculture, industrialisation, digital transformation, and market access.
In accordance with the Public Finance Management Act, 2015, the government submitted the budget estimates in March to allow adequate deliberation and alignment with Uganda’s development goals.
The budget is composed of Shs 37.2 trillion in domestic revenues [tax and non-tax], Shs 2.08 trillion in budget support [grants and loans], Shs 11.3 trillion from domestic borrowing, Shs 10.02 trillion in domestic debt refinancing [rollover], and Shs 11.32 trillion in project support [grants and loans].
Specific allocations include Shs 11.32 trillion for external project support, Shs 7.1 billion as the first call, Shs 4.98 trillion for amortisation, Shs 11.33 trillion for interest payments, Shs 319.4 billion in local government aid, Shs 1.4 trillion for domestic arrears, and Shs 493 billion for Bank of Uganda debt repayment.
Programme Priorities and Strategic Spending
Development Plan Implementation received the largest allocation at Shs 29.5 trillion, followed by Human Capital Development at Shs 11.4 trillion. The security sector was allocated Shs 9.9 trillion, Integrated Transport Infrastructure and Services Shs 6.8 trillion, Private Sector Development Shs 2.7 trillion, and Agro-Industrialisation Shs 1.8 trillion.
Additional focus areas include Arrears at Shs 1.7 trillion, Regional Balanced Development at Shs 1.6 trillion, and Sustainable Urbanisation and Housing at Shs 1.5 trillion. Sustainable Energy Development and legislation, oversight, and representation were each allocated Shs 1 trillion, while Administration of Justice received Shs 599 billion.
Contingency Fund Allocation
As mandated by law, the Contingencies Fund must receive 0.5 percent of the previous year’s appropriated budget. For FY 2024/25, this amounted to Shs 171.1 billion. However, the government has allocated Shs 169 billion for FY 2025/26 falling short by Shs 2.1 billion.
Boosting Household Incomes and Micro-Enterprises
The Parish Development Model [PDM] received Shs 1.075 trillion to enhance grassroots economic transformation. Emyooga SACCOs were allocated Shs 100 billion, including Shs 20 billion for teachers. The Microfinance Support Centre was granted Shs 76.67 billion, with Shs 30 billion earmarked for onward lending and Shs 10 billion for special interest groups. Additionally, Shs 23.66 billion was set aside to support youth and women in development, Shs 3 billion for Jua-kalis, and Shs 5 billion for older persons.
Efforts to empower women and vulnerable groups included Shs 231.33 billion for the GROW project, Shs 147.1 billion for the Uganda Development Corporation, Shs 121.15 billion for the SAGE social grant, and Shs 16 billion for grants supporting persons with disabilities. Domestic arrears for FY 2025/26 were allocated Shs 1.4 billion, while Shs 8 billion was designated for cattle compensation in Acholi, Lango, and Teso.
Industrialisation and Private Sector Development
Support for SMEs was allocated Shs 275.09 billion. Infrastructure development in industrial parks received Shs 90.97 billion, and the Agriculture Credit Facility was capitalised with Shs 47.68 billion. The Uganda Development Bank was further capitalised with Shs 414.74 billion, while the Resource Enhancement and Accountability Programme [REAP] was granted Shs 210.7 billion.
Commercial Infrastructure and Agriculture
Investments in livestock breeding and poultry distribution under National Animal Genetic Resource Centre and Databank [NAGRC&DB] were set at Shs 96.05 billion, with Shs 25.5 billion for feed production. An anti-tick vaccine project received Shs 5 billion, while Shs 24.1 billion was allocated for NARO research services.
Mechanisation through labour-saving technologies was allocated Shs 55.14 billion, and the National Oil Palm Project and Agriculture Value Chain Development Project received Shs 70.71 billion and Shs 73.25 billion, respectively.
Further allocations included Shs 117.35 billion for improving market access and agricultural standards, Shs 83.46 billion for the National Oil Seeds Project, Shs 176.32 billion for the Uganda Climate Smart Agricultural Transformation Project, and Shs 60 billion for providing coffee seedlings to Northern Uganda.
Transport Infrastructure Development
The standard gauge railway construction was allocated Shs 2.175 trillion. Road infrastructure, including upgrades and rehabilitation of national roads and bridges, received Shs 2.2 trillion. The District, Urban, and Community Access Roads [DUCAR] programme and road fund management were each granted Shs 91.78 billion.
Tourism Development
Tourism investments included Shs 11.16 billion for Mt. Rwenzori infrastructure, Shs 21.52 billion for museums and heritage sites, and Shs 10.15 billion for Source of the Nile tourism development.
Health Services
Health sector priorities include Shs 1.01 trillion from the Global Fund for TB, AIDS, and malaria, and Shs 194.2 billion from GAVI for vaccines and sector development.
Emergency preparedness and COVID-19 response were allocated Shs 57.89 billion. Infrastructure improvements at the Uganda Heart Institute and Uganda Cancer Institute were allocated Shs 65.55 billion and Shs 42.1 billion, respectively.
General hospital rehabilitation and construction received Shs 116.9 billion, while Shs 30.7 billion was designated for regional oncology and diagnostic centres in Arua, Mbale, and Mbarara. Essential medicines and health supplies across all public health facilities were allocated Shs 623.5 billion.
Education
Shs 244.9 billion was allocated to the Uganda Secondary Education Expansion Project Phase II. The Development of Primary Schools Project received Shs 12.8 billion, the Vocational Project Phase II Shs 54.44 billion, and the Uganda National Examination Board Infrastructure Project II Shs 7 billion.
Digital Transformation
The Government Network [GovNet] project received Shs 197 billion to expand digital infrastructure and connectivity across the country.
Energy, Oil and Gas Development
Midstream petroleum infrastructure development was allocated Shs 686.35 billion. Electricity access was boosted by Shs 346.4 billion under the EASP. Shs 34.8 billion was allocated to the Karuma Hydroelectric Power Project, while Shs 26 billion was allocated for the ORIO Mini Hydro Power and Rural Electricity Project.
Rural electrification efforts received Shs 165.29 billion, and transmission projects included Shs 21.7 billion for the Karuma-Tororo line and 132 kV Ntinda substation, Shs 202 billion for the Hoima-Kinyara-Kafu line, and Shs 15 billion for LPG infrastructure development.
Water Supply and Sanitation
Key water and sanitation projects include Shs 114.04 billion for the Farm Income Enhancement and Forestry Conservation Programme Phase II, Shs 127.95 billion for the Irrigation for Climate Resilience Project, and Shs 81 billion for solar-powered irrigation and water systems. Investments in forests and protected areas for climate-smart development received Shs 81.8 billion, while the Kampala Water-Lake Victoria sanitation project was allocated Shs 165.16 billion. Shs 40 billion was designated for the Water Service Acceleration Project.
Governance and Security
To support the electoral roadmap, the government allocated Shs 450 billion in preparation for national elections and democratic processes.
https://thecooperator.news/national-budget-month-for-fy-2025-26-launched/
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