Uganda Allocates Shs 16.5 Trillion for Third Quarter Expenditure, Prioritizing Growth Strategy and Debt
The Government of Uganda has set a total expenditure limit of Shs 16.537 trillion for the third quarter of the 2025/26 financial year, with treasury operations and debt repayment taking the largest share. The funds, released by the Ministry of Finance, Planning and Economic Development, are aimed at driving national priorities under the ATMS (Agro-industrialization, Tourism, Minerals, and Science) strategy for tenfold growth while maintaining fiscal discipline.
A breakdown of the total release shows that Shs 7.591 trillion is for Treasury Operations, constituting the largest portion of the budget. This is closely followed by Shs 3.277 trillion from External Financing and Shs 2.898 trillion for Non-Wage expenditures. Wage allocations stand at Shs 2.175 trillion, while Government of Uganda (GoU) Development projects receive Shs 514 billion, and Local Revenue Arrears refunds are allocated Shs 82 billion.
Strategic Sectors (ATMS) Get Boost
Significant allocations have been directed towards the strategic ATMS sectors designed to spur economic growth:
· Agro-industrialization (A): Shs 167 billion for research, innovations, and fast-tracking the rollout of the anti-tick vaccine.
· Tourism (T): Shs 32.8 billion for promotion, the “Explore Uganda” drive, and development of the Uganda Martyrs’ Namugongo Shrine.
· Mineral Development (M): Shs 469.69 billion to continue interventions for fast-tracking first oil production.
· Science & Tech (S): Shs 166.15 billion for expanding internet connectivity and digitizing the economy.
Critical Enablers and Human Capital
The budget also outlines substantial funding for security, infrastructure, and human capital development, identified as key enablers for the ATMS agenda.
· Security: A combined Shs 510.12 billion is allocated to defense, police, prisons, and intelligence agencies.
· Infrastructure: The Ministry of Works and Transport receives Shs 1.34 trillion (mostly external financing) for projects including Uganda Airlines and Railways. The Ministry of Energy gets Shs 468.48 billion for rural electrification and power projects.
· Kampala Development: Kampala Capital City Authority (KCCA) and the Ministry for Kampala Affairs receive a total of Shs 394.03 billion for social services, roads, drainage, and sanitation projects.
· Human Capital: The health sector is allocated Shs 706.614 billion, including Shs 344.67 billion for the Ministry of Health, Shs 245.52 billion for the National Medical Stores to purchase essential drugs, and Shs 77.374 billion for the Cancer and Heart Institutes. Education receives Shs 115.50 billion for the ministry and Shs 107.453 billion for public universities.
Statutory Obligations and Revenue Collection
Mandatory statutory expenditures have been catered for, including:
· Shs 7.59 trillion for debt and treasury operations.
· Shs 2.175 trillion for public sector wages.
· Shs 318.24 billion for Pension and Gratuity.
· Shs 91.65 billion for Parliament, Shs 28.27 billion for the Judiciary, and Shs 18.351 billion for the Office of the Auditor General.
To support domestic revenue mobilization, key agencies received funding: Uganda Revenue Authority (Shs 133.18 billion), Immigration (Shs 33.36 billion), and the Uganda National Bureau of Standards (Shs 12.277 billion).
Local Governments and Policy Emphasis
Local Governments have been allocated Shs 519.866 billion to facilitate service delivery and capital development projects at the grassroots level.
In concluding remarks attached to the expenditure limits, the government emphasized the need for Accounting Officers to prioritize and fast-track programme implementation to sustain momentum for wealth and job creation. It reiterated a commitment to macroeconomic stability, fiscal consolidation, and transparency, encouraging citizens to use public information platforms to track budget execution and service delivery.
The government affirmed its intent to “live within our means” while aligning spending with available financing under the approved fiscal framework.
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