Government Unveils Shs 84.29 Trillion Draft Budget for FY 2026/27, Prioritizing Agro-Industrialization and Infrastructure
Kampala, Uganda – The Minister of State for General Duties, Hon. Henry Musasizi, has laid before Parliament the Draft Annual Budget Estimates of Revenue and Expenditure for the Financial Year 2026/27, revealing a record-high budget totaling Shs. 84,294,163,572,966.
Presenting the estimates to the Speaker of Parliament on Thursday, Musasizi outlined that the budget is structured around the theme: “Full Monetization of the Ugandan Economy through Commercial Agriculture, Industrialization, Expanding and Broadening Services, Digital Transformation and Market Access.”
The Minister noted that this fiscal plan marks a significant milestone, serving as the first budget to implement the new National Resistance Movement (NRM) Manifesto for the term 2026/27 – 2030/31. It is also aligned with the Fourth National Development Plan (NDPIV) and the Tenfold Growth Strategy.
Strategic Priorities
According to Musasizi, the budget prioritizes investments in key growth sectors, collectively referred to as ATMS: Agro-Industrialization, Tourism Development, Mineral-Based Industrial Development, and Science, Technology, and Innovation (including ICT and the Creative Arts Industry).
“The budget has accordingly prioritised investments in Agro-Industrialization, Tourism Development, Mineral-Based Industrial Development, and Science Technology and Innovation including ICT and Creative Arts Industry (ATMS) and Enablers,” he said.
Infrastructure and Social Development
A substantial portion of the expenditure is earmarked for flagship infrastructure projects under NDPIV. Key allocations include funding for the Standard Gauge Railway, the Meter Gauge Railway, and the Kampala-Jinja Express Highway. The government has also set aside resources for the construction and maintenance of critical roads, as well as providing electricity to industrial parks.
In addition to hard infrastructure, the budget provides resources to support readiness activities for the Africa Cup of Nations (AFCON) 2027. Hon. Musasizi also confirmed that the budget includes provisions for the enhancement of salaries for Primary school teachers, Arts teachers in Secondary Schools, and instructors in Business, Technical, Vocational Education and Training (BTVET) institutions.
Financing the Budget
To finance the substantial budget, the government has proposed tax policy measures expected to generate Shs. 1.741 trillion.
The Minister concluded by announcing that the official Budget Speech for FY 2026/27 is scheduled to be delivered on Thursday, 11th June, 2026.
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