Uganda’s Ministry of Finance has released Shs21.82 trillion for the second quarter of the 2026/27 financial year, about 26 per cent of the approved annual budget, with debt and treasury operations taking the largest slice.
Acting Permanent Secretary and Secretary to the Treasury Patrick Ocailap said the money would cover statutory obligations, government operations and priority programmes while the authorities try to keep debt sustainable. SoftPower News and Uganda Radio Network both put the debt and treasury share at Shs10.75 trillion.
Where the money goes
Wages and salaries across government take Shs2.42 trillion, with Shs376.6 billion for pensions and gratuity. Works and Transport receives Shs1.48 trillion. Health gets Shs416.5 billion, National Medical Stores Shs284.7 billion, and national and regional referral hospitals Shs94.5 billion. Education and Sports is allocated Shs154.6 billion and public universities Shs209.1 billion.
The National Council of Sports receives Shs260.5 billion to prepare for the 2027 Africa Cup of Nations, which Uganda will co-host with Kenya and Tanzania. Local governments get Shs457.4 billion, of which Shs292.8 billion is for capital development. Defence and Veteran Affairs is allocated Shs414.7 billion.
Under the Agro-industrialisation, Tourism, Minerals and Science (ATMS) agenda, science, technology and innovation, including ICT and the creative industry, receive Shs372.9 billion. Agro-industrialisation gets Shs224.5 billion, tourism Shs48.2 billion and mineral-based industry, including oil and gas, Shs46.7 billion. The Uganda Revenue Authority is allocated Shs130.6 billion for collection work.
Growth backdrop
Ocailap said the economy grew 6.4 per cent in 2025/26, up from 6.3 per cent the year before, with nominal GDP at Shs250.45 trillion ($69.345 billion). SoftPower reported that the Purchasing Managers’ Index averaged 54.5 in the first three months of 2026/27 and the Business Tendency Index 56.6, both above the 50 mark that signals expansion or positive sentiment.
The release comes days after the Bank of Uganda raised its policy rate to 12 per cent to contain fuel-driven inflation and support the shilling. Higher domestic rates and heavy debt service in the quarterly cash plan will shape how much room Kampala has for new capital projects that Kenyan contractors and suppliers often bid for.
