Budget expands opportunities for us all

Uganda’s Financial Year 2026/27 National Budget, which was presented last week, marks yet another important milestone in our country’s steady journey towards prosperity. Delivered under the guidance of the President and presented by the finance minister, this budget – upon close analysis – shows that it is more than a statement of figures and fiscal projections. It is, rather, a declaration of intent and a reaffirmation of the Government’s unwavering commitment to improving the lives of ordinary Ugandans, protecting the gains we have made over the years and accelerating our journey towards achieving the aspirations of Vision 2040 and the NDP IV.

THE KEY FIGURES

At a historic sh84.39 trillion, this budget represents a 16 per cent increase from the previous financial year. This reflects confidence in the resilience of our economy and government’s determination to sustain Uganda’s socioeconomic transformation agenda.

At a time when many economies around the world continue to grapple with uncertainty, Uganda remains on a firm footing. Our Gross Domestic Product is estimated at $197.1b, with GDP per capita projected to rise to $1,420 – equivalent to approximately sh5.1m per person. Economic growth is projected at 6.4%, underscoring the effectiveness of the policies that have safeguarded stability while laying the foundation for inclusive prosperity.

A POOR MAN’S BUDGET

What stands out most about this budget, however, is its unmistakable focus on the ordinary Ugandan. This is, by every measure, a poor man’s budget.

At its heart is government’s deliberate effort to lift millions of Ugandans from okukolaera ekida kyoka (working for the stomach alone) to sustainable prosperity. The clearest demonstration of this commitment is the substantial increase in funding for the Parish Development Model (PDM), government’s flagship intervention for household wealth creation.

Funding under the PDM has risen from sh2.43 trillion to sh4.4 trillion – almost doubling the resources available to empower citizens at the grassroots. These funds will reach all the country’s 10,589 parishes, extending affordable capital to households that have historically been excluded from formal financial systems.

This intervention is highly significant, especially because it will enable more peasant farmers to commercialise production and more young people to establish small enterprises. Village artisans will be able to expand their trades, while market vendors will have greater opportunities to diversify their income streams.

Government has equally recognised the need to empower those already in employment. Consequently, the Pay As You Earn (PAYE) threshold has been increased from sh235,000 to sh335,000 per month, meaning that low-income earners will retain more of what they earn.

For thousands of working Ugandans, this translates into improved take-home pay, enhanced purchasing power, and a greater ability to provide for their families. It means more money for school fees, healthcare, savings and investment. It also stimulates domestic demand, supports local businesses, and strengthens the broader economy.

In the same spirit, government has allocated an additional sh568.65b to enhance salaries for primary school teachers and arts teachers in secondary schools and BTVET institutions. This is both an investment in human dignity and a recognition of the critical role teachers play in shaping the nation’s future.

INVESTORS NOT LEFT OUT

The budget also sends a strong signal to investors and entrepreneurs that Uganda remains open for business.

Aware that access to patient and affordable capital has long been one of the major constraints facing Ugandan enterprises, government has allocated sh442b to the Uganda Development Bank and the GROW initiative to provide affordable financing to emerging and middle-level investors. These interventions will support business expansion, innovation and job creation.

Small and Medium Enterprises (SMEs), which form the backbone of our private sector, also stand to benefit from the increase in the Value Added Tax registration threshold from sh150m to sh300m in annual turnover. This will ease the compliance burden on growing businesses, enabling them to reinvest profits, expand operations and formalise sustainably. The Government has further introduced tax incentives for developers of ultra-luxury tourism facilities to unlock investment in high-value tourism infrastructure. At the same time, tax exemptions granted to strategic energy investments, such as Bujagali Energy are intended to contribute to more affordable electricity tariffs, reducing the cost of doing business and improving Uganda’s competitiveness.

INVEST IN PRIORITY SECTORS

The opportunities presented by this budget extend across all sectors of the economy. The four priority areas of agro-industrialisation, tourism development, mineral-based industrialisation and science, technology and innovation remain central to the Government’s strategy for wealth creation and structural transformation.

Ugandans should, therefore, position themselves to take advantage of these opportunities. Farmers should embrace commercial agriculture and value addition. Young people should exploit opportunities in technology and innovation. Investors should explore tourism and manufacturing. Businesses should align themselves with the sectors in which government is making strategic investments.

Indeed, strategic investments matter because government itself remains one of the largest consumers in the economy. Businesses that understand national priorities are better positioned to grow alongside the country’s development agenda.

A BUDGET FOR ALL

Protecting the gains we have made requires not only sound policies, but also responsible citizenship. This year’s budget speaks directly to every Ugandan. It reassures the poor that government has not forgotten them. It encourages workers by allowing them to keep more of their earnings. It empowers entrepreneurs through improved access to capital and tax relief. It invites investors to seize opportunities in strategic sectors. It rewards those who educate our children. And it challenges all of us to play our part in building the Uganda we desire.

Vision 2040 envisages a transformed Ugandan society from a peasant to a modern and prosperous country. Achieving middle-income status is not an abstract ambition; it is a practical goal that will be realised through deliberate investments, disciplined implementation, hard work and collective responsibility.

This budget lays the foundation for the desired transformation. It is not merely a financial plan, but a national call to action.

Therefore, let us seize the opportunities it presents by investing in the priority sectors. Each of us now has a duty to critically analyse the budget figures and identify where we can best fit in to drive the socioeconomic transformation we dream of. If we do this, we will be able to protect the gains we have achieved through peace, stability and sound economic stewardship.

The author is the Minister for the Presidency and Budget Office