The Parliament of Uganda has approved a record Ugx 84.391 trillion national budget for the 2026/27 financial year, setting the country’s largest-ever fiscal plan during a plenary sitting at Parliament of Uganda.
The Parliamentary Session chaired by Speaker Rt Hon Anita Annet Among anchored in the National Development Plan IV and the NRM 2026–2031 manifesto, is intended to accelerate Uganda’s long-term ambition of transforming into a US 500 billion dollar economy by 2040.
The approved allocations reveal a budget heavily shaped by security priorities, infrastructure development, institutional financing, and a growing debt burden that now consumes a significant share of national resources.
The Ministry of Defence and Veteran Affairs Uganda leads all spending with Ugx 2.9 trillion, followed by strong allocations to security institutions including the Uganda Police Force which took Ugx 847.8 billion and the Uganda Prisons Service with Ugx 484 billion, reinforcing government emphasis on national security and internal stability.
Alongside this, economic infrastructure remains a priority, with the Ministry of Works and Transport receiving Ugx 1.024 trillion for roads and connectivity projects aimed at boosting trade and regional integration.
Key public institutions also receive substantial funding, including Uganda Medical Stores Ugx 861.5 billion for essential medicine supply, the Uganda Revenue Authority Ugx 817.8 billion to strengthen tax collection and Makerere University will get Ugx 370.7 billion to support higher education and research.
In addition, Science Technology and Innovation programmes are allocated Ugx 517.4 billion, reflecting government efforts to promote industrialization and innovation, while Kampala Capital City Authority receives Ugx 330.8 billion to manage Urban services and infrastructure in the capital.
Despite these development-oriented allocations, a significant portion of the budget is absorbed by debt obligations, with about Ugx 33.6 trillion which is nearly 40 percent of total expenditure allocated to debt servicing, limiting fiscal space for new investments and raising concerns about long-term sustainability.
In order to finance the spending plan, government will rely on Ugx 44.8 trillion in domestic revenue, supplemented by Ugx 11.79 trillion in domestic borrowing and Ugx 11.27 trillion in external borrowing, highlighting continued dependence on debt to bridge the funding gap.
The Minister of Finance Planning and Economic Development in Charge of General Duties Hon Henry Musasizi defended the budget as essential for advancing Uganda’s transformation agenda under NDP IV, emphasizing growth through agro-industrialization, tourism, mineral development, and innovation.
However, the Leader of Opposition Rt Hon Joel Ssenyonyi cautioned that economic expansion must translate into jobs and reduced inequality, while Kira Municipality Member of Parliament Hon Ibrahim Ssemujju Nganda raised concerns over transparency, citing last-minute reallocations and disputed expenditures across key government programs.
Overall, while the budget reflects Uganda’s ambition to expand infrastructure, strengthen institutions, and maintain security, the dominance of defence spending and debt servicing underscores a tightening fiscal environment in which development priorities must compete with growing financial obligations.
