The government yesterday released Shs18.43 trillion to support essential services and development projects for the second quarter of the 2025/26 financial year.
The money will go to key sectors that drive Uganda’s economy, including agriculture, tourism, minerals, and science and technology.
However, teachers who are currently striking will have to wait longer for salary increases. The Ministry of Finance said there will be no salary increments this financial year, but the issue will be considered in the 2026/27 budget, which is now being prepared.
The Deputy Secretary to the Treasury, Mr Patrick Ocailap, while speaking during the release at the Ministry of Finance, Planning and Economic Development headquarters, said the budget for this financial year continues to support the implementation of the Tenfold Growth Strategy, which will see the country registering an increase in economic growth every year.
Mr Ocailap said the emphasis is on the agro-industrialisation, tourism, mineral development, and science, technology, and innovation (ATMs) and enablers.
‘As government, our main objective is to promote technical efficiency by ensuring that all ministries, departments, agencies, and local governments deliver better services to Ugandans at the lowest cost,’ he said.
Mr Ocailap added: ‘I urge accounting officers to convene finance committee meetings to agree on the priorities for the quarter in line with the approved budget and resources available to inform allocations to cost centres.’
Mr Ocailap said the money that has been released is going to be spent in the budgeted programmes and projects and not for anything outside, which the accounting officer could have illegally incurred.
Statutory obligations
To ensure that there is no expenditure outside the budget, Mr Ocailap said the money caters for statutory obligations and institutions with Shs7.07 trillion for debt and treasury operations; Shs2.132 trillion to cater for wages and salaries across government; Shs339 billion for pension and gratuity; Parliament, Shs223.64 billion, and the Judiciary Shs64.06 billion.
Of the total amount released, Shs7.07 trillion will go to debt payments and treasury operations, Shs2.13 trillion to pay government salaries, Shs339 billion for pensions and gratuities, Shs223.6 billion for Parliament, and Shs64 billion for the Judiciary.
The Parish Development Model (PDM) will get Shs554 billion, and the ministry promised that all PDM funds will be released within this financial year.
Under the government’s priority sectors, Shs230 billion has been given to agro-industrialisation for research and development projects, Shs53.65 billion to tourism for marketing and improving hospitality standards, Shs16.64 billion to the Petroleum Authority for mineral and oil development, and Shs124.25 billion for science, ICT, and innovation programmes.
Uganda Bureau of Statistics
According to the Uganda Bureau of Statistics (UBOS), the economy grew by 6.3 percent in 2024/25, up from 6.1 percent the year before. The total size of the economy increased from Shs203.7 trillion to Shs227.9 trillion.
This growth was driven by higher demand, government programmes like the PDM, good weather, and a stable business environment.
Looking ahead, the government expects the economy to grow by 7 percent in 2025/26 and even higher in the coming years, while business confidence is also rising, the Business Tendency Index stood at 59.2 percent in September 2025, up from 57.8 percent in August, showing growing optimism among businesses.
Inflation averaged 3.8 percent in the first quarter of 2025/26, helped by stable prices, a steady exchange rate, and good food supplies. It is expected to remain below the government’s target of 5 percent.
The Uganda shilling also strengthened, trading at Shs3,497 per US dollar in September 2025, compared to Shs3,573 in August. Mr Ocailap said this is due to increased foreign inflows from investors, remittances, and coffee exports.
Exports
Uganda’s export earnings rose to $3.47 billion (about Shs11.9 trillion) in the last quarter of 2024/25, up from $2.23 billion (about Shs7.6 trillion) the year before, driven by higher coffee exports and better global prices. Imports also rose by 38.5 percent, reaching $3.97 (about Shs13.6 trillion) billion.
Despite this, Uganda’s trade deficit narrowed by 21 percent, showing a positive trend in trade balance. Mr Ocailap said remittances by Ugandans living abroad also increased by 19.9 percent, reaching $401.85 million (about Shs1.3 trillion) in the last quarter of 2024/25. For the whole year, total remittances stood at $1.4 billion (about Shs4.8 trillion).