Finance ministry projects Shs290 trillion economy in FY 2026/27
Looking ahead, the Minister said the economy is projected to grow by 10.4 percent in FY 2026/27, expanding the size of the economy to Shs 290.2 trillion, equivalent to USD 76.7 billion.
Uganda stands at its most promising economic inflection point, with the Financial Year 2026/27 presenting a critical opportunity to fast-track the country’s transition to upper middle-income status, the State Minister for Finance (General Duties), Henry Musasizi, has said.
Briefing Parliament’s Budget Committee on the National Budget Framework Paper (NBFP) for FY 2026/27, Musasizi noted that the economy has demonstrated strong recovery and growth momentum. He revealed that Uganda recorded GDP growth of 6.3 percent in FY 2024/25, while growth for the current FY 2025/26 is projected at between 6.5 and 7.0 percent.
Looking ahead, the Minister said the economy is projected to grow by 10.4 percent in FY 2026/27, expanding the size of the economy to Shs 290.2 trillion, equivalent to USD 76.7 billion.
“The budget for the next financial year will be guided by the aspiration to expand the size of the economy tenfold before 2040, starting by doubling GDP every five years as programmed under the Fourth National Development Plan (NDP IV),” Musasizi said.
He explained that this policy direction will be implemented through sustained investments in the Agro-Industrialisation, Tourism Development, Mineral Development and Science, Technology and Innovation (ATMS) sectors, alongside critical economic enablers.
However, Musasizi acknowledged that several pieces of “unfinished business” must be addressed in FY 2026/27 to sustain growth and improve efficiency. These include stamping out budget practices that breed corruption, closing leakages in routine expenditures such as transfers to schools and health centres, cleaning up the payroll, improving liquidity and cash management, strengthening Uganda’s sovereign credit rating, and diversifying development financing through innovative funding mechanisms.
He disclosed that the preliminary resource envelope for FY 2026/27 is estimated at Shs 69.399 trillion, down from Shs 72.376 trillion in the current FY 2025/26, reflecting tighter fiscal conditions.
Earlier, Musasizi, together with the Minister of State for Planning, Amos Lugoloobi, presented the Budget Framework Paper for Vote 008 (Ministry of Finance, Planning and Economic Development) and Vote 130 (Treasury Operations) to the Finance Committee of Parliament.
According to Musasizi, the budget allocation to the Ministry of Finance for FY 2026/27 is estimated at Shs 2,693.40 billion, compared to Shs 2,796.77 billion in the current financial year, largely due to the reduction in the overall resource envelope.
He further noted that Shs 28,264.652 billion allocated to Vote 130 (Treasury Operations) will be used to ensure the timely processing of debt service payments, redemptions and the settlement of other statutory obligations.
Musasizi was flanked during the briefing by the Permanent Secretary/Secretary to the Treasury, Dr. Ramathan Ggoobi, who underscored the need for disciplined fiscal management to support Uganda’s long-term economic transformation agenda.
