Government prioritizes efficient resource allocation, budget discipline in FY2026/27
One of the government's key targets is to increase domestic revenue to Shs45.6 trillion in the 2026/27 financial year, up from the projected Shs35.7 trillion in 2025/26.
The Ugandan government has outlined an ambitious fiscal policy agenda for the 2026/27 Financial Year, targeting a sharp increase in domestic revenue while tightening expenditure controls and strengthening accountability in public finance management.
The priorities, which took effect with the start of the new financial year on July 1, are aligned with the government’s Ten-Fold Growth Strategy and the Fourth National Development Plan (NDP IV), aimed at accelerating economic transformation.
According to the Ministry of Finance, Planning and Economic Development, fiscal policy during the 2026/27 financial year and the medium term will focus on allocating resources to sectors that stimulate economic growth while maintaining debt sustainability.
One of the government’s key targets is to increase domestic revenue to Shs45.6 trillion in the 2026/27 financial year, up from the projected Shs35.7 trillion in 2025/26.
Officials say the increase will be achieved by broadening the tax base, improving tax administration and strengthening compliance among taxpayers.
The government also expects the commencement of commercial oil production to become a major source of revenue during the new financial year.
Authorities said emphasis will be placed on ensuring transparent and efficient collection and management of oil revenues to maximize their contribution to national development.
In addition to increasing revenue, government plans to rationalize public expenditure by strengthening expenditure controls and improving the efficiency of public spending.
The Ministry also announced tougher measures to enhance transparency and accountability in the management of public resources.
Beginning this financial year, all Accounting Officers will be required to sign a Budget Discipline and Accountability Charter as part of their performance contracts.
The charter introduces sanctions for breaches of accountability rules in planning, budgeting and the execution of public funds, a move government says is intended to reinforce budget discipline across ministries, departments and agencies.
The government further pledged to strengthen public financial management systems to improve transparency and ensure value for money in public expenditure.
On public debt, the Ministry said fiscal policy will continue to prioritize debt sustainability through prudent borrowing practices.
These include carefully evaluating financing options, prioritizing concessional borrowing and strengthening debt portfolio management to keep the fiscal deficit within sustainable limits.
The government said the measures are intended to support macroeconomic stability while creating fiscal space for investments that drive industrialization, job creation and inclusive economic growth under the Ten-Fold Growth Strategy.
