Minister Musasizi: F/Y 2026/27 is Uganda’s opportunity to fast-track the qualitative leap to upper middle-income status

The State Minister for General Duties Hon. Henry Ariganyira Musasizi has said that Uganda stands at its most promising economic inflection point and the financial year 2026/27 is Uganda’s opportunity to fast-track the qualitative leap to upper middle-income status. This was during the briefing of the Budget Committee of Parliament on the National Budget Framework Paper for FY 2026/27.

The Minister who was flanked by the Permanent Secretary and Secretary to the Treasury (PSST), Ramathan Ggoobi, said Uganda registered GDP growth of 6.3 percent in FY 2024/25 and the projected growth for this FY 2025/2026 is between 6.5 to 7.0 percent.

He said the economy is projected to grow by 10.4 percent in FY 2026/27, increasing the size of the economy to Shs 290.2 trillion (equivalent to USD76.7 billion).

“The budget for next financial year will be guided by the aspiration to expand the size of the economy tenfold before 2040, starting by doubling GDP every five years as programmed under the NDPIV. This policy direction will be implemented through sustained investments in the ATMS and enablers,” said the Minister.

Some of the critical unfinished business for consideration next financial year includes: Stamping out budget games that breed corruption; Closing leakages in routine expenditures such as transfers to schools, health centres and the payroll; Improving liquidity (cash) management and sovereign credit ratings and diversifying sources of development finance including tapping into innovative financing.

Musasizi said the preliminary resource envelope for FY2026/27 amounts to Shs. 69.399 trillion, down from Shs. 72.376 trillion in the current FY 2025/26.

Earlier, Musasizi was joined by the Minister of State for Planning, Amos Lugoloobi to present the Budget Framework Paper for Vote 008 (Ministry of Finance, Planning and Economic Development) and Vote 130 (Treasury Operations) to the Finance Committee of Parliament.

Musasizi said the budget allocation to the Finance Ministry next fiscal year 2026/27, is estimated at Shs.2, 693.40 billion, down from Shs. 2,796.77 billion mainly on account of the overall reduction in the total resource envelope.

He also noted that the resource allocation of Shs.28,264.652 billion for vote 130 (Treasury Operations) will go towards ensuring timely processing of debt service payments, redemptions and other statutory obligations.