Uganda’s government has announced a major increase in its proposed national budget for the 2025/2026 financial year. According to the Ministry of Finance, Planning and Economic Development, the new budget will now be 71.9 trillion Ugandan shillings, which is about $19.6 billion. This amount is 25% higher than the 57.4 trillion shillings that was first projected in September 2024.
The Finance Ministry made the announcement through a post on its official page on X (formerly known as Twitter). However, it did not give full reasons for the sharp increase in the budget. But in earlier statements, the government had said that the coming financial year would focus heavily on developing agriculture through agro-industrialisation, boosting tourism, and expanding its minerals and petroleum sectors.
This newly proposed budget is just slightly smaller than the current 2024/2025 national budget, which stands at 72.1 trillion shillings and will end in June 2025. The new figures are now being looked at by Uganda’s Parliament, and full details of how the money will be spent are expected to be revealed in the official budget speech in June. The budget will only become final once the lawmakers approve it.
Officials believe the new budget proposal shows the government’s plan to push for stronger economic growth. By investing more in agro-industrialisation, the hope is to help farmers process more of their goods and increase the value of their produce. This could improve food production and create more jobs, especially in rural areas.
Tourism is also getting special attention in the budget. The Ugandan government sees tourism as a key source of foreign exchange and employment. With better infrastructure, marketing and services, the sector could bring in more tourists and boost the country’s income.
Another major area of interest is the exploitation of Uganda’s natural resources, especially oil and other minerals. The government wants to attract both local and foreign investors into the oil sector as it plans to build more infrastructure and prepare for oil exports. The East African Crude Oil Pipeline project, which connects Uganda to Tanzania’s coastline, is also part of this big plan.
Finance Minister Matia Kasaija has not yet spoken publicly about the reasons behind the increase in the proposed budget, but economic observers say it reflects the country’s need to spend more on development projects. Others are watching to see how the government plans to raise the money needed for such a large budget and whether Uganda will borrow more or rely on increased revenues.
As the budget is being debated, many people in Uganda are interested in how much money will be allocated to healthcare, education, and infrastructure, especially roads and electricity. These sectors affect the everyday lives of Ugandans and are always hot topics during budget discussions.
The final decision on the budget is expected by June, after the parliamentarians finish their review. Once approved, the 2025/2026 budget will guide government spending from July 1, 2025, to June 30, 2026.
