Kampala, Uganda: The Ministry of Finance, Planning and Economic Development has released Shs 18.43 trillion to government institutions for the second quarter of the 2025/26 financial year, bringing total disbursements to Shs 38.61 trillion, or 53.4 per cent of the approved national budget.
Deputy Secretary to the Treasury, Patrick Ocailap, said the funds are aimed at supporting the government’s Ten-Fold Growth Strategy, with a focus on key production drivers including agro-industrialisation, tourism, minerals, and science and technology.
“Our main objective is to promote technical efficiency by ensuring that all Ministries, Departments, Agencies, and Local Governments deliver better services to Ugandans at the lowest cost,” Ocailap said.
Ocailap underscored the need for transparency and accountability in spending. Accounting officers were instructed to ensure the timely payment of salaries, pensions, and gratuities by the 28th of every month. He stressed that no recruitment should occur without clearance from the Ministry of Public Service, and that all government transactions must be executed in Uganda shillings.
Ministries, departments, and local governments were also urged to hold Finance Committee meetings to agree on quarterly priorities and maintain clear spending records.
Sector Allocations
The Works and Transport Ministry received Shs 1.7 trillion, earmarked for road projects and the completion of Entebbe International Airport. The Defence and Veteran Affairs Ministry was allocated Shs 642.8 billion for security-related expenditure, while Health received Shs 471 billion, including Shs 205 billion for the National Medical Stores.
Local governments were allocated Shs 390.78 billion, with Shs 252 billion dedicated to capital development projects. The Education and Sports Ministry received Shs 172 billion, including Shs 144 billion earmarked for public universities.
The Police and Prisons services received Shs 161.6 billion and Shs 89.6 billion, respectively, for security sector expenditure. The Office of the President was allocated Shs 114 billion, also for security purposes.
Meanwhile, the Electoral Commission received Shs 52.7 billion to complete the full release of Shs 450 billion for the electoral roadmap, and Shs 187 billion was set aside for domestic arrears, utilities, rent, and international contributions.
Uganda’s Economy grows by 6.3%
Ocailap reported that Uganda’s economy continues to expand despite global financial pressures and geopolitical tensions. Real GDP grew by 6.3 per cent in FY2024/25, up from 6.1 per cent the previous year, increasing the economy’s size to Shs 227.88 trillion.
He attributed this growth to a sustained recovery in aggregate demand, driven by government initiatives such as the Parish Development Model, coupled with favourable weather conditions and a stable macroeconomic environment.
The Ministry also reported stable inflation at 3.8 per cent in the first quarter and a stronger shilling, trading at Shs 3,497 per US dollar in September, up from Shs 3,573 the previous month. Exports grew by 55.4 per cent to USD 3.48 billion, while imports increased by 38.5 per cent to USD 3.98 billion. As a result, Uganda’s trade deficit narrowed by 21.1 per cent, amounting to USD 499.5 million.
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