Uganda Projects 7 Percent Economic Growth for Fy 2025/26

13 June 2025
The Independent (Kampala)

How the Uganda budget resource for FY2025/26 are allocated

Wages & Salaries - Shs 8.57 trillion

Non-Wage Recurrent Expenditure--Shs 28.33 trillion (includes operations, wealth creation funds, science & tech, education & health grants, medicines, infrastructure maintenance, and interest payments)

Development Expenditure - Shs 18.24 trillion

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Domestic Debt Refinancing - Shs 10.03 trillion

Debt Amortization - Shs 4.98 trillion

Repayment to Bank of Uganda - Shs 493 billion

Clearing Domestic Arrears - Shs 1.4 trillion

Local Government (Own Revenue) - Shs 328.6 billion

Financing strategy

Improving tax administration to raise an additional Shs 1.89 trillion.

Introduction of new tax measures to increase domestic revenue by Shs 538.6 billion.

Rationalising tax exemptions to eliminate inefficient ones that do not support industrial policy.

Repurposing resources in the budget for FY 2024/25 from less productive to high-impact areas in line with the Tenfold Growth Strategy.

Mobilising more concessional financing from international financial institutions such as the World Bank, IMF, African Development Bank, Islamic Development Bank, BADEA, etc.

Mobilising development finance from other innovative sources, including Public Private Partnerships, climate finance, private equity, Sukuk bonds, Panda bond, diaspora bonds, etc.

Kampala, Uganda | Xinhua | Uganda has projected a seven percent economic growth for the 2025/26 financial year, with expectations of reaching double-digit growth when the country begins oil and gas production.

Finance Minister Matia Kasaija told Parliament on Thursday that the Ugandan economy has strengthened its resilience to both domestic and external shocks.

While presenting the national budget estimates for the 2025/26 financial year, which begins on July 1, Kasaija noted that the Ugandan economy is projected to grow to 66.1 billion U.S. dollars.

"This will translate into a higher GDP per capita of 1,324 dollars next financial year, compared to 1,263 dollars estimated for this financial year ending June 30," he said.

Kasaija noted that the economy is expected to grow by 6.3 percent in the current 2024/25 financial year, following a robust 8.6 percent growth recorded in the third quarter. In the previous fiscal year (2023/24), the economy expanded by 6.1 percent.

Kasaija said the growth has been broad-based, driven by strong performance in agriculture, industry, and services such as information and communications technology.

He attributed this progress to ongoing government interventions and the implementation of sound fiscal and monetary policies that have supported investment in the private sector. ∎

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