By Spy Uganda
As Parliament prepares to resume business following the January 2026 general elections, legislators are expected to begin scrutiny of Government’s proposed Shs69.399 trillion national budget for the 2026/27 financial year, with spending priorities pointing to a recalibration of Uganda’s development agenda amid mounting fiscal pressures.
The National Budget Framework Paper (NBFP) was tabled on December 16, 2025, by the Ministry of Finance, Planning and Economic Development (MoFPED), in line with Article 155 of the Constitution and the Public Finance Management Act, 2015, which require the Executive to present the framework ahead of detailed sectoral allocations.
The proposed resource envelope represents a Shs2.977 trillion reduction from the Shs72.376 trillion approved for FY2025/26, reflecting Government’s efforts to rein in public expenditure amid rising debt servicing costs and constrained domestic revenues.
According to MoFPED, the budget will be financed through a combination of domestic revenue collections by the Uganda Revenue Authority (URA) and borrowing from both domestic commercial banks and external lenders, in line with Uganda’s Medium-Term Debt Management Strategy.
“The focus for FY2026/27 is consolidating growth-enhancing investments while ensuring fiscal sustainability and value for money,” the Ministry notes in the Budget Framework Paper.
URA Commissioner General John Musinguzi Rujoki has been tasked to mobilise over Shs40 trillion in domestic revenue to finance the proposed budget.
Under the Agro-Industrialisation Programme, Government has proposed an allocation of Shs1.471 trillion, aimed at boosting agricultural productivity, value addition and climate resilience.
The funds will support agricultural research, mechanisation, irrigation, fertiliser distribution, extension services, agro-processing, post-harvest handling and storage, as well as expanded agricultural insurance. Resources have also been earmarked for disease surveillance, diagnostics and laboratory management, alongside implementation of climate change adaptation policies under National Development Plan III (NDP III).
The Integrated Transport Infrastructure Programme has been allocated Shs6.758 trillion, underscoring Government’s continued emphasis on connectivity as a driver of economic growth.
Key priorities include construction of 27 percent of the Malaba–Kampala Standard Gauge Railway (SGR), completion of the Tororo–Gulu and Kampala–Malaba metre gauge railway rehabilitation, upgrading 110 kilometres of roads, construction of 15 bridges, and emergency works on critical infrastructure such as Ssezibwa Bridge.
The allocation will also support the operationalisation of Kabalega International Airport, rehabilitation of regional aerodromes including Gulu, Arua, Kasese and Soroti, and increased capitalisation of Uganda Airlines to expand its fleet.
The Human Capital Development Programme, covering education, health and social protection, commands the largest allocation of Shs9.857 trillion.
In the education sector, the funds will enhance access to and quality of pre-primary education, institutionalise teacher training, expand STEM exposure in primary schools, increase capitation grants, and improve teacher recruitment and remuneration. Resources have also been earmarked for maintenance of sports facilities and construction of infrastructure linked to Uganda’s AFCON commitments.
In health, Government plans to scale up maternal and child nutrition, expand immunisation coverage, and strengthen prevention and treatment of non-communicable diseases such as cancer and diabetes. The budget will support specialised oncology and cardiovascular care, as well as construction of specialised hospitals in Katakwi and Lwengo districts.
The Ministry also signalled plans to study options for implementing Universal Health Insurance, in line with ongoing policy discussions.
Tourism, one of Uganda’s leading foreign exchange earners, has been allocated Shs404 billion, targeting infrastructure development at tourism sites, hospitality training, branding and marketing, health tourism, and mitigation of human-wildlife conflict.
Meanwhile, Shs1.698 trillion has been proposed for Mineral-Based Industrial Development, including oil and gas. The funds will support completion of the East African Crude Oil Pipeline (EACOP) ahead of anticipated first oil in 2026, construction of the oil refinery, development of downstream petrochemical industries, and improved governance of mineral resources.
Government has also proposed Shs388 billion for Science, Technology and Innovation (STI), including legal reforms to strengthen intellectual property protection and fast-track the Copyright and Neighbouring Rights Act. The allocation will support the Hi-Tech City initiative and commercialisation of innovations such as Kiira electric vehicles and pharmaceutical products.
The manufacturing sector has been allocated Shs253 billion to support industrial park infrastructure, secondary and tertiary manufacturing, and value addition across priority sectors.
Under Sustainable Energy Development, Shs1.172 trillion will fund the 380MW Kiba hydropower project, floating solar power at Isimba, and at least 500MW of utility-scale solar projects in the Elgon and Acholi sub-regions.
Digital transformation has been allocated Shs273 billion, covering last-mile fibre connectivity, cybersecurity and data privacy implementation, AI and blockchain platforms, expansion of free-to-air television coverage, and remodelling post offices into e-government service centres.
To support private sector-led growth, Government has earmarked Shs2.533 trillion for the Private Sector Development Programme, including the Parish Development Model (PDM), logistics hubs, trade facilitation and open innovation networks.
Urban infrastructure and housing development will receive Shs650 billion, while Shs1.845 trillion has been proposed for local governments to strengthen revenue mobilisation, implement PDM, support newly elected leaders, and address presidential directives, including those related to war veterans.
The Judiciary has been allocated Shs607 billion to enhance access to justice, expand alternative dispute resolution mechanisms, and digitise court processes.
Parliament, under the Legislation and Oversight Programme, will receive Shs1.06 trillion to conduct legislative business, engage the public, exercise oversight, and ensure accountability in the use of public funds.
As debate unfolds in the 11th Parliament, legislators are expected to interrogate whether the proposed allocations adequately respond to post-election realities, rising debt sustainability concerns, and the promise of inclusive economic transformation outlined in NDP III and Uganda Vision 2040.
