The Ministry of Finance has said government spending on public services remains on track despite the ongoing election season, after the Treasury released Shs16.537 trillion to fund activities in the third quarter of the 2025/26 financial year. Officials said there has been no diversion or shortfall of funds for either recurrent or development programmes, with all activities approved in the national budget continuing as planned and aligned to the Fourth National Development Plan (NDP IV).
Recurrent expenditure caters for day-to-day government operations such as salaries and maintenance, while development expenditure supports long-term investments in infrastructure, health, education and other growth-enhancing sectors.
Speaking during the Quarter Three expenditure release on January 9, the Permanent Secretary and Secretary to the Treasury, Mr Ramathan Ggoobi, urged Accounting Officers to prioritise and fast-track programme implementation.
‘This is to sustain momentum for the realisation of the development results envisaged under the ten-fold growth strategy, especially those targeting wealth and job creation,’ Mr Ggoobi said, adding that government would continue to align spending with available financing to safeguard macroeconomic stability.
He also encouraged citizens and stakeholders to actively monitor budget execution through available public information platforms, reiterating government’s commitment to transparency and regular communication on economic performance.
‘We shall endeavour to live within our means. However, I have noted that some Accounting Officers are still delaying the payment of salaries and pensions against our guidelines. I am working with the Ministry of Public Service to devise appropriate measures and sanctions,’ he said.
According to the Treasury, the Shs16.537 trillion released for the quarter has been distributed across key expenditure lines: wages (Shs2.175 trillion), non-wage recurrent (Shs2.898 trillion), GoU development (Shs514 billion), external financing (Shs3.277 trillion), treasury operations including debt servicing (Shs7.591 trillion), and local revenue (Shs82 billion).
Funding for statutory obligations includes Shs7.59 trillion for debt and treasury operations, Shs318.24 billion for pensions and gratuity, Shs91.65 billion for Parliament, Shs28.27 billion for the Judiciary, and Shs18.35 billion for the Office of the Auditor General.
With half of the financial year completed, Mr Ggoobi said the Treasury has so far released 58.1 percent of the approved national budget, while 63.4 percent of the Government of Uganda budget has been disbursed.
He also dismissed concerns that election-related spending could disrupt service delivery, adding that all election costs had been fully provided for and that government workers had been paid. In FY 2025/26, government budgeted Shs18.24 trillion for development expenditure, of which 77 percent has already been released.
This includes Shs1.2 trillion allocated to the Ministry of Works and Transport to support ongoing road construction and maintenance. On the broader economy, Mr Ggoobi said Uganda continues to show resilience despite global uncertainties and the election-year cycle.
Economic growth stood at 6.3 percent in FY 2024/25 and is projected between 6.5 and 7 percent this financial year, with double-digit growth expected in the medium term.
The size of the economy is projected to reach $68.4 billion (Shs249.4 trillion).
Inflation remained stable at 3.1 percent in November and December 2025, a trend Mr Ggoobi described as unusual for an election year. Uganda has recorded Africa’s lowest inflation rate over the past decade, supported by increased food production, prudent monetary policy, a stable shilling, and government’s direct importation of fuel through the Uganda National Oil Company.
Exports of goods and services reached $13.4 billion in FY 2024/25, while goods exports alone stood at $12.79 billion for the year ending November 2025.
As a result, Uganda recorded a balance of payments surplus of $2.37 billion for the year ending October 2025, the highest in 15 years. Foreign direct investment rose to $3.5 billion, portfolio inflows reached $1.7 billion, and remittances from Ugandans abroad climbed to $1.6 billion in FY 2024/25.
Tourism earnings also recovered to $1.7 billion, supported by improved security, infrastructure investment and economic diplomacy. Despite the election period, business confidence remains strong.
By November 2025, the Business Tendency Index stood at 57.2, the Composite Indicator of Economic Activity rose to 183.5, and the Purchasing Managers’ Index increased to 53.8-well above the 50-point expansion threshold.
ATMs to drive tenfold growth – budget allocations
Agro-industrialisation (A)
Tourism development: Shs167 billion
Mineral-based industrial development: Shs32.8 billion
Manufacturing and agro-SMEs: Shs469.69 billion
Science, Technology and Innovation (including ICT and creative industries): Shs166.15 billion
Enablers of the ATMs
Ministry of Defence and Veteran Affairs: Shs270.05 billion
Uganda Police Force: Shs270.05 billion
State House: Shs177.05 billion
Uganda Prisons Service: Shs73.04 billion
Office of the President: Shs45.08 billion
External Security Organisation (ESO): Shs18.39 billion
Infrastructure
Ministry of Works and Transport:Shs1.34 trillion
GoU: Shs911.21 billion
External financing: Shs423 billion
Includes funding for Uganda Airlines, Uganda Railways, Kampala Infrastructure Services, and the Standard Gauge Railway
Ministry of Energy and Mineral Development:Shs468.48 billion
GoU: Shs239.92 billion
External financing: Shs228.56 billion
Kampala Capital City Authority (KCCA):Shs90.53 billion
GoU: Shs86.82 billion
External financing: Shs3.71 billion
Ministry of Kampala Capital City and Metropolitan Affairs:Shs294.50 billion
GoU: Shs253 billion
External financing: Shs290.97 billion
Human capital development
Ministry of Health: Shs344.67 billion
GoU: Shs44.49 billion
External financing: Shs300.19 billion
National Medical Stores (NMS): Shs245.52 billion
Uganda Cancer Institute and Uganda Heart Institute: Shs77.37 billion
Regional Referral Hospitals (National and Regional): Shs39.05 billion
National Council of Sports: Shs24.68 billion
Ministry of Education and Sports: Shs115.50 billion
Public Universities: Shs107.45 billion
Local government
Shs199.86 billion released overall
Shs328.58 billion for conditional and non-conditional grants
Shs191.28 billion for capital development projects
Revenue-generating votes
Uganda Revenue Authority (URA): Shs133.18 billion (revenue collection)
National Citizenship and Immigration Control: Shs33.36 billion
Uganda National Bureau of Standards (UNBS): Shs12.277 billion
National Planning and Management Board: Shs3.31 billion