KAMPALA, UGANDA – The Uganda Revenue Authority (URA) faces a significant escalation in its collection mandate, with the Ministry of Finance directing it to mobilize at least UGX 40.090 trillion in domestic revenue for the 2026/27 Financial Year.
Thank you for reading this post, don't forget to subscribe!This ambitious hike of UGX 3.284 trillion represents one of the largest annual increments in recent years, pushing URA’s collection target to a new historic high and underscoring the government’s heavy reliance on domestic revenue to fund its agenda.
The new directive is contained in the first Budget Call Circular for the preparation of the 2026/27 budget, issued by the Permanent Secretary and Secretary to the Treasury, Mr. Ramathan Ggoobi, to all accounting officers across government ministries, departments, agencies, and local governments.
The circular outlines a total preliminary resource envelope of UGX 69.399 trillion for FY 2026/27, slightly lower than the UGX 72.376 trillion for the previous year.
The government attributes the heightened revenue expectation to its ongoing revenue strategy, while simultaneously projecting a reduction in domestic borrowing to UGX 8.952 trillion, signaling a more cautious fiscal approach.
This reduction is aimed at maintaining sustainable public debt, curbing interest payments, and phasing out one-off expenditures, including funding for the 2026 electoral road map, AFCON preparations, and National ID registration.
Furthermore, spending on domestic debt refinancing is expected to fall to UGX 9.68 trillion, while budget financing is projected to sharply decline to UGX 330.97 billion, and external project financing is expected to reduce to UGX 10.018 trillion.
On sectoral priorities, the circular provided the following guidance:
I). Agriculture: The government will prioritize commercializing farming and boosting agro-exports through key reforms, including a new cost-sharing model for inputs and a revolving fund for livestock vaccines.
II). Tourism: The strategy aims to double visitor spending and stay duration by enhancing connectivity to major sites and developing infrastructure, including new highway facilities built with private sector partners.
III). Minerals: Key priorities include completing the East African Crude Oil Pipeline to achieve first oil and conducting comprehensive quantification of minerals like iron ore, gold, and copper.
Under the Science, Technology, and Innovation programme, the overarching goal is to build a knowledge-based economy, with a focus for FY 2026/27 on commercializing innovations from Kiira Motors and Dei Bio Pharma.
In Human Capital Development, the government reiterated its commitment to free universal education, student loans, and the rehabilitation of schools, as well as constructing new seed schools, expanding facilities, and recruiting staff.
Additionally, the circular confirmed that Busoga and Bunyoro universities will be operationalized in the 2026/27 period, and that sports infrastructure developed for events like CHAN and AFCON 2027 will be brought into use.
The issuance of this circular marks the formal commencement of the budget process for FY 2026/27, setting the stage for detailed negotiations and allocations in the months ahead.
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