Parliament Approves National Budget Framework, Sets Path for Tenfold Economic Growth

KAMPALA – Parliament has approved the National Budget Framework Paper (NBFP) for the Financial Years 2026/27 to 2030/31, endorsing the government’s strategic plan to expand Uganda’s economy to USD 500 billion by 2040.

The approval followed an extensive debate on the report of the Committee on Budget. In his remarks, the Minister of State for General Duties, Hon. Henry Musasizi, outlined the government’s strategic policy direction, which focuses on accelerating socio-economic transformation through key priority sectors dubbed “ATMS and Enablers,” alongside a push for export growth.

Ambitious Economic Targets
Minister Musasizi projected that the economy is set to grow between 6.5% and 7% in the next financial year. This growth is part of the broader “Tenfold” growth strategy aimed at achieving the USD 500 billion economy target by 2040.

In accordance with the Public Finance Management Act (PFMA), the Minister pledged the commitment of the Ministry of Finance, Planning and Economic Development (@mofpedU) to work with Parliament to ensure the full budget for FY 2026/27 is processed by the end of April 2026. This timeline is critical as it precedes the inauguration of the 12th Parliament.

Key Government Priorities for FY 2026/27
The government outlined a comprehensive set of priority areas for the upcoming financial year, with a strong emphasis on fiscal discipline, anti-corruption, and efficiency. These include:

· Combating Corruption & Leakages: A dedicated focus on stamping out “budget games that breed corruption,” closing leakages in routine expenditures like school and health centre transfers, and strengthening internal controls and audit functions.
· Fiscal & Debt Management: Improving liquidity management, diversifying sources of development finance, increasing domestic revenue mobilization, and addressing low absorption of borrowed project funds. A specific strategy is in place to eliminate the current stock of domestic arrears over three years, starting in FY 2025/26, while preventing new arrears.
· Public Sector Reform: Completing public procurement reforms, improving public asset management and maintenance, strengthening governance of state-owned enterprises, and enhancing performance management within the public service.
· Economic Competitiveness: Strengthening the Uganda National Bureau of Standards (UNBS) to certify products for export and domestic markets, and improving overall government coordination around common national goals.

The approval of this framework paper sets the stage for the detailed budget preparations, with the government signaling a determined shift towards tighter financial management and accelerated, targeted economic growth.