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Uganda’s Ministry of Finance Planning and Economic Development has unveiled a Shs72.136 trillion national budget for the 2025/2026 financial year, setting its sights on transforming every corner of the country into a hub of commercial activity.

Presented by Finance Minister Matia Kasaija last Thursday, the budget signals a strong shift towards full monetisation of Uganda’s economy, underpinned by commercial agriculture, industrialisation, digital transformation, and expanded access to markets.

Speaking against the backdrop of a rapidly growing economy, Kasaija painted a picture of a Uganda ready to transition from resilience to acceleration.

“The budget for next financial year, and over the medium term, is focused on people and wealth creation,” he said.

Consequently, the theme of the financial year 2025/26 is: “Full Monetisation of Uganda’s Economy through Commercial Agriculture, Industrialisation, Expanding and Broadening Services, Digital Transformation and Market Access.’”

The Shs72.3 trillion resource envelope represents one of the largest in Uganda’s history, with domestic revenue expected to contribute Shs37.2 trillion, roughly 60 percent of the total.

The rest will be financed through borrowing and grants. The budget deficit is estimated at 7.6 percent of GDP.

But Kasaija reassured Ugandans, stating that the government had a clear strategy to enhance domestic revenue mobilisation, widen the tax base, and strengthen tax administration.

“Government plans to collect Shs37.2 trillion in domestic revenue next financial year,” he said, adding that focus would be placed on tackling smuggling, corruption at Uganda Revenue Authority (URA), and leveraging digital tools like the Electronic Fiscal Receipting and Invoicing System to plug leakages.

Priority sectors such as health, education, agriculture, infrastructure, and tourism received large shares of the allocation.

Healthcare emerged as a major beneficiary, with Shs5.87 trillion earmarked for next year. Kasaija detailed plans to functionalise health centre IVs, scale up e-health systems, and expand emergency medical services.

He said the government had already delivered 20 digital X-ray machines and installed CT scanners in 14 out of 16 regional referral hospitals.

“We are strengthening the National Ambulance and Emergency Care System,” he added.

In education, the minister allocated Shs5.04 trillion to support Universal Primary and Secondary Education, student loans, the construction of new seed schools, and improvements in teacher recruitment and digital inspections.

Kasaija also confirmed the upcoming operationalisation of Bunyoro and Busoga universities, as well as continued investment in sports infrastructure ahead of African Champions Cup (CHAN) and African Cup of Nation (AFCON 2027). APA News

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