Government has put the 2025/26 budget projections at Shs57.4 trillion which is lower than this year's shs72.1 trillion budget.
In a recent engagement with the Presidential Advisory Committee on the Budget (PACOB) held at Postel Building, the Permanent Secretary and Secretary to the Treasury (PSST), Ramathan Ggoobi, unveiled the projected budget.
This projection reflects a targeted fiscal approach aimed at catalyzing Uganda's ambitious economic transformation, aiming to grow the GDP from the current USD 50 billion to USD 500 billion by 2040.
Ggoobi noted a reduction in the total discretionary resource, which has dropped by Shs 3.935 trillion, from Shs 28.182 trillion to Shs 24.247 trillion.
He attributed this decrease largely to a significant reduction in borrowing from external sources, which has been scaled down by Shs 1.364 trillion--from Shs 1.394 trillion to Shs 29.9 billion.
Additionally, there has been an increase in external debt repayments, up by Shs 882.5 billion, with the total amount rising from Shs 3.149 trillion to Shs 4.032 trillion.
Net domestic borrowing also saw a steep reduction of Shs 4.957 trillion, dropping from Shs 8.968 trillion to Shs 4.011 trillion.
"This resource envelope should address the key interventions and activities of government that must be financed to enable us achieve the annual targets required to grow the economy ten-fold starting FY 2025/26," Ggoobi stated.
The PSST outlined that the budget for the upcoming fiscal year will align with the National Development Plan IV (NDP IV) and is anchored in Uganda's 10-fold growth strategy.
This blueprint seeks to shift the economy onto a faster growth trajectory, with a target annual GDP growth rate of 8% and ambitions to reach double-digit growth over the medium term.
Amid these fiscal adjustments, the government has committed to realigning resources towards key economic areas that promise a more robust and accelerated expansion.
The focus will be on prioritizing high-impact projects and policies intended to position Uganda for a prosperous future within the ambitious framework of Vision 2040.
