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  • Defense Gets Shs719B as Uganda Balances Development and Debt in Shs72T Budget
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Defense Gets Shs719B as Uganda Balances Development and Debt in Shs72T Budget

Hamlet Arinda 1 year ago 2 minutes read

Kampala, Uganda – The Ugandan government, through the Ministry of Finance, Planning, and Economic Development, has unveiled an ambitious Shs 72.38 trillion budget for the 2025/26 financial year, with Shs 43.4 trillion available for direct program implementation after debt servicing obligations.

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The first quarter release of Shs 17.18 trillion, which accounts for 23.7% of the total budget, demonstrates the government’s commitment to timely implementation of priority programs.

Notable allocations include substantial investments in infrastructure, with Shs 1.076 trillion allocated to works and transport, human capital development, with Shs 262.88 billion for health sector transformation, and economic enablers like energy, with Shs 420.76 billion, and agro-industrialization, with Shs 215.28 billion.

According to Ramathan Ggoobi, Permanent Secretary and Secretary to the Treasury, the budget represents a strategic investment in Uganda’s Tenfold Growth Strategy, designed to accelerate economic transformation and sustainable development.

The budget architecture is anchored on three key strategic objectives: completing ongoing strategic infrastructure projects, enhancing productivity in agriculture and industry, and building human capital through quality education and healthcare services.

“The FY 2025/26 budget framework deliberately prioritizes interventions that will catalyze our Tenfold Growth Strategy. We’re making targeted investments in productive sectors while ensuring fiscal sustainability through prudent debt management,” Ggoobi emphasized.

The FY 2025/26 budget allocates Shs 719.12 billion to defense, recognizing security as a critical foundation for economic transformation.

The government is balancing development needs with fiscal sustainability by allocating Shs 114.9 billion for revenue enhancement via the Uganda Revenue Authority and Shs 27.72 trillion for debt management.

PS Ramathan Ggoobi confirmed that the Ministry will closely monitor the implementation of the budget to ensure it delivers on its transformative promise.

Key flagship projects under close monitoring include rural electrification, secondary education expansion, and road infrastructure development, which are expected to drive the budget’s impact.

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