• Debt servicing absorbs about 40% of total spending
• Budget prioritizes infrastructure, security, and human capital
• Financing relies largely on domestic revenue amid tighter external funding

Uganda’s Parliament has approved the national budget for the FY2026/2027, setting total spending at 84,390 billion shillings, or $22.7 billion, according to an April 27 statement.

PARLIAMENT APPROVES NATIONAL BUDGET FOR FY 2026/27:

Parliament has approved the Shs 84.39 trillion budget for FY 2026/27 out of which appropriation is Shs 47.16 trillion while statutory is Shs 37.23 trillion.

The budget will be financed through domestic revenue of Shs 44.18… pic.twitter.com/fAXRcYXCS8

— Ministry of Finance (@mofpedU) April 25, 2026

Debt servicing accounts for the largest share, at nearly $8.9 billion, or about 40% of total expenditure. It is followed by spending on human capital development, which totals $3.6 billion and includes a planned 25% phased salary increase for teachers.

Infrastructure receives $2.9 billion, covering roads, railways, water systems, electricity, and transport networks. The security sector is allocated $2.7 billion to maintain stability.

In parallel, $672.4 million is set aside for wealth creation programs, including the Parish Development Model, Emyooga, and youth-focused initiatives. Science, technology, and innovation receive $295.8 million, including support for ICT and the creative industry, with the aim of accelerating digitalization and public service delivery.

Finance Minister Henry Musasizi said the budget will be funded mainly through domestic revenues, which account for more than half of total resources. Additional financing will come from borrowing, external support, oil revenues, and grants.

The budget comes at a time of mounting fiscal pressure. Uganda’s economy remains resilient, but faces challenges linked to slow reforms and weakening public finances. The suspension of new funding by the World Bank following the adoption of an anti-homosexuality law in May 2023 has also limited access to external financing.

Public debt has risen by 26.2% to reach $32.3 billion in the 2024/2025 fiscal year. Over the medium term, however, the outlook remains positive. The World Bank expects growth of 6.8% in 2026, with further support from the anticipated expansion of oil production between 2027 and 2028.

Ingrid Haffiny