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Uganda’s parliament has cleared a 16% higher national budget of UGX 84.4 trillion (USD 22.7 billion) for the 2026–27 fiscal year, signalling a strong push towards infrastructure and economic expansion. A large portion of the spending will be supported by tax revenues and domestic borrowing, while key investments include a EUR 2.7 billion (USD 3.2 billion) railway and a toll road project. The government is also preparing for crude oil production, which is expected to boost growth significantly. The final budget presentation, along with revenue measures, is scheduled for early June.
Uganda’s parliament has approved the government’s proposed budget of UGX 84.4 trillion (USD 22.7 billion) for the 2026–27 fiscal year, marking a 16% increase compared to the previous year. The approval was granted late in the past week, as confirmed by parliamentary spokesperson Chris Obore. Advertisement
The budget outlines a balanced funding approach, with nearly half of the expenditure expected to be financed through tax revenues. Around 14% will be raised through domestic borrowing, while the remaining portion will be supported by external budget assistance and other funding sources, as indicated earlier by the finance ministry.
Government officials have attributed the higher spending to major infrastructure commitments. This includes a planned EUR 2.7 billion (USD 3.2 billion) railway project aimed at improving regional connectivity, along with a new toll road linking Kampala to an industrial hub in eastern Uganda. These projects are part of a broader effort to strengthen trade routes and support long-term economic activity.
The country is also moving closer to becoming an oil producer. Authorities expect crude oil production to begin within the year, which is anticipated to significantly boost revenue inflows. The finance ministry, in a recent update, indicated that economic growth could reach 10.4% in the 2026–27 fiscal period, supported largely by oil-related earnings.
In recent years, Uganda has steadily increased public spending to accelerate infrastructure development and prepare for oil exports. The government has also focused on improving tax collection and managing debt levels, as rising borrowing has drawn attention from global financial institutions.
The finance minister is set to present the final version of the budget, along with proposed revenue measures, to parliament in early June, which will provide further clarity on taxation and fiscal priorities for the coming year.
Source Reuters
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