The Ministry of Finance, Planning and Economic Development (MoFPED) has announced the release of UGX 17.18 trillion for the first quarter of the Financial Year 2025/2026, representing 23.7% of the approved total budget of UGX 72.38 trillion.
During a press conference in Kampala, Ramathan Ggoobi, the Permanent Secretary to the Treasury, said the FY 2025/26 budget is aimed at supporting the implementation of the Tenfold Growth Strategy. He noted that the economy continues to demonstrate resilience and sustained growth despite ongoing global uncertainties such as trade wars and international conflicts.
“Growth averaged 6.9% in the first three quarters of the just-concluded financial year,” Ggoobi said. “This robust growth in GDP was driven by government expenditure through the Parish Development Model (PDM), growth in fixed capital formation, and a recovery in household expenditure.”
He further noted that the strong performance of the economy is expected to continue in FY 2025/26, with real GDP growth projected at 7%. He added that this growth is expected to reach double digits in the medium term.
Ggoobi also reported that Uganda’s total export earnings in Q3 of FY 2024/25 amounted to USD 2.6 billion, reflecting a 39.1% increase compared to USD 1.9 billion recorded in Q3 of FY 2023/24. He attributed this growth to improved volumes and international prices of key export commodities such as coffee and cocoa, which more than doubled over the period. Additionally, remittances for Q3 of FY 2024/25 totaled USD 304.48 million, up from USD 231.68 million recorded in the same quarter of the previous year.
He also highlighted that annual headline inflation has remained subdued and within the policy target of 5%, and noted that the Ugandan shilling has continued to strengthen against the US dollar.
Ggoobi provided a detailed breakdown of the initial budget disbursement, emphasizing major allocations across sectors. Key releases include UGX 2.261 trillion for wages and salaries across all government institutions, UGX 482.76 billion for pensions and gratuity, and substantial funding for statutory bodies such as Parliament (UGX 249.38 billion) and the Electoral Commission (UGX 468.72 billion), along with allocations for the Judiciary, Auditor General, and National Planning Authority.
Further reinforcing the government’s strategic development agenda, Ggoobi outlined allocations under the “ATMS” initiative to drive Tenfold Growth. These include UGX 215.28 billion for agro-industrialization, UGX 20.5 billion for tourism development, and UGX 26 billion for mineral-based industrial development—including the oil and gas sector. Science, Technology, and Innovation, which includes ICT and the creative industries, received UGX 139.13 billion.
Security was also prioritized, with UGX 719.12 billion allocated to the Ministry of Defense and Veteran Affairs, UGX 130.73 billion to the Uganda Police Force, and additional funding for the State House, Uganda Prisons Service, Office of the President, Internal Security Organisation (ISO), and External Security Organisation (ESO).
In infrastructure, the Ministry of Works and Transport secured UGX 1.076 trillion, primarily for ongoing public works projects. The Ministry of Energy and Mineral Development received UGX 420.76 billion, including significant investment in rural electrification.
The Kampala Capital City Authority (KCCA) was allocated UGX 148.32 billion to support urban development and drainage infrastructure. Human capital development saw considerable funding, including UGX 143.75 billion for the Ministry of Education and Sports—supporting projects such as USEEP and ULEARN—and UGX 157.73 billion for capital development in public universities and training institutes.
Healthcare received a significant boost, with UGX 262.88 billion for the Ministry of Health, UGX 173.96 billion for the National Medical Stores, and funding for specialized institutions such as the Uganda Cancer Institute, Uganda Heart Institute, and regional referral hospitals.
Finally, local governments received UGX 382.03 billion to support their operations and development projects, while revenue-generating bodies such as the Uganda Revenue Authority and Uganda Registration Services Bureau also received funding to facilitate their core functions.
This comprehensive first-quarter release underscores the government’s commitment to accelerating national development programs and enhancing public service delivery across the country in the new fiscal year.
