Ministry Of Finance,Planning & Economic Development Uganda

Uganda’s Finance Minister Presents Major External Financing Proposal to Parliament

On behalf of the government, Finance Minister Matia Kasaija appeared before the Parliamentary Committee on National Economy to seek approval for a significant borrowing and grant financing package aimed at supporting key national development projects. He was accompanied by several Cabinet Ministers, including Gen. Edward Katumba Wamala (Minister of Works and Transport), Dr. Bright Rwamirama (Minister of State for Animal Industry), Dr. Sam Mayanja (Minister of State for Lands), Lillian Aber (Minister of State for Relief, Disaster Preparedness and Refugees), and Dr. John Chrysestom Muyingo (Minister of State for Higher Education).

Proposed Financing Structure

The proposal includes:

A request to borrow up to USD 1.341 billion from the International Development Association (IDA), a concessional lending arm of the World Bank.

Grants amounting to USD 328.3 million from the same institution to complement the loan and reduce the financial burden on the national budget.

These funds are intended to support a number of critical development programs aligned with Uganda’s strategic objectives for inclusive growth, infrastructure improvement, and service delivery enhancement.

Targeted Programs and Projects

The financing will be allocated to the following key initiatives:

Northern Uganda Social Action Fund (NUSAF IV) – Phase four of this longstanding program aims to improve livelihoods, enhance social protection, and support community development in Northern Uganda.

Development Response to Displacement Impacts Project (DRDIP II) – Phase two focuses on addressing the socio-economic impacts of hosting large numbers of refugees, particularly in displacement-affected communities.

Uganda Learning Acceleration Program (ULEARN) – Aims to strengthen foundational learning outcomes in primary education and accelerate recovery from COVID-19-induced learning gaps.

Uganda Cities and Municipalities Infrastructure Development (UCMID) Program – Designed to improve urban infrastructure and service delivery across selected cities and municipalities to support Uganda’s urbanization strategy.

Strengthening Public Investment and Asset Management for Growth and Resilience (PIMPLUS) – Seeks to enhance public investment efficiency and institutional capacity for managing public assets.

Additional Loan Proposals for Infrastructure and Agriculture

Minister Kasaija also presented additional borrowing proposals for sector-specific projects:

USD 20 million from the Arab Bank for Economic Development in Africa (BADEA) to fund the upgrading of the Nebbi–Goli road (16km) in Northern Uganda.

EUR 115.88 million from Standard Chartered Bank to finance the critical oil roads package 6B, which includes:

Karugutu–Ntoroko road (56km)

A connecting road to Rwebisengo (8.2km)

Town roads in Ntoroko (3.3km)

Totaling approximately 68km of road infrastructure to support oil development and regional connectivity.

EUR 192.96 million from Citi Bank to support Phase I of the Enhancing Agricultural Production, Quality and Standards for Market Access Project, which is expected to:

Improve the quality and competitiveness of Ugandan agricultural products

Strengthen food safety standards

Facilitate access to both local and international markets

Parliamentary Consideration and Next Steps

Minister Kasaija emphasized that these investments are critical to achieving Uganda’s Tenfold Growth Agenda, a government vision for rapid socio-economic transformation through strategic investments in infrastructure, human capital, and production sectors.

The proposals were formally received by the Chairperson of the Committee on National Economy, Hon. Ikojo John Bosco, who affirmed the Committee’s commitment to rigorously examine the proposals and present a comprehensive report to the House for debate and approval.

Q2 Press Briefing:

Patrick Ocailap, the Acting Principal Secretary to the Treasury (PSST) and Deputy Secretary, is currently providing an update to the press on the expenditure releases for the second quarter of the fiscal year 2025/26.

He emphasized that despite a challenging global environment marked by tightening financial conditions and ongoing geopolitical tensions—which have caused disruptions in supply chains over recent years—the national economy has continued to show strong growth.

According to Ocailap, the economy expanded by 6.3% during the fiscal year 2024/25, an improvement from the 6.1% growth recorded in the previous fiscal year 2023/24. Additionally, the nominal size of the economy increased significantly to 227.88 trillion shillings in FY 2024/25, up from 203.71 trillion shillings in FY 2023/24.

He attributed this growth primarily to a sustained recovery in aggregate demand, which has been supported by various government initiatives. Among these, the Parish Development Model (PDM) has played a key role in driving economic activity and development at the grassroots level.

Looking ahead, Ocailap projected that real GDP growth is expected to reach 7% in the fiscal year 2025/26, with forecasts indicating growth will remain above 7% in the medium term, reflecting a positive outlook for the economy.

Training and Roll-Out of the Cash Flow Forecasting Module in the Program Budgeting System (PBS):

Today marks the training of the second group of technical officers from the Ministry of Education and Sports () and the Ministry of Energy and Mineral Development (). The sessions are being held at Serena Hotel, Kigo, as part of the ongoing capacity-building efforts for effective financial management.

The training was officially inaugurated by Maris Wanyera, the Acting Director of Debt and Cash Policy, who represented the Permanent Secretary to the Treasury (PSST), .

In her opening remarks, Ms. Wanyera underscored the vital importance of robust fiscal management. She urged Ministries, Departments, and Agencies (MDAs) to adhere strictly to prudent macro-fiscal policies, ensuring that public resources are managed transparently, efficiently, and with full accountability.

She stressed, “It is imperative that we avoid wastage and irresponsible expenditure on activities that do not contribute to fulfilling your institutional mandates or the government’s broader developmental goals.”

Ms. Wanyera elaborated that effective cash management is key to guaranteeing that government funds are available at the right time and place, enabling timely fulfillment of financial obligations such as salary payments, project financing, and clearing outstanding arrears.

She further explained that this predictability in cash flow builds trust and confidence among businesses and households, which in turn stimulates more vigorous economic activity and growth.

The introduction of the Cash Management Framework in 2024 was a strategic response to challenges related to weak cash flow forecasting capabilities and the accumulation of unpaid debts across government entities.

As part of this initiative, the officers trained today are expected to prepare and submit detailed cash flow plans for the financial year 2025/26, enhancing planning accuracy and fiscal discipline across their respective Votes.

This training is a critical step towards strengthening the government’s overall financial management system and ensuring that resources are optimally allocated to support Uganda’s development priorities.

The upcoming training program will be conducted across all Ministries, Departments, Agencies (MDAs), and Local Governments (LGs) to ensure consistent understanding and implementation.

Accurate and reliable financial forecasts play a crucial role in maintaining fiscal stability by helping to manage government resources effectively. They also contribute to lowering borrowing costs by improving creditworthiness and boosting overall confidence in the economy among investors and stakeholders.

Accordingly, all votes are mandated to prepare and submit a detailed cashflow plan for the fiscal year 2025/26. This plan should outline expected revenues and expenditures to facilitate better financial planning and management throughout the year.

FINAL DAY OF LOCAL GOVERNMENT BUDGET CONSULTATIONS FOR FY 2026/27

Today marks the conclusion of the local government budget consultative workshops taking place nationwide for the financial year 2026/27. Over the past three weeks, these workshops have served as a vital platform for engaging political leaders, technical experts, and citizens in shaping the priorities and allocations for the upcoming budget.

We sincerely thank all local government political leaders and technical staff for their dedication and active involvement throughout this process. Your insights, expertise, and feedback have been instrumental in ensuring that the budget reflects the real needs and aspirations of communities across the country.

In addition to contributions from workshop participants, we have also received valuable input from Ugandans who participated by calling in during regional radio talk shows, further enriching the consultation process by capturing a wide range of voices and perspectives.

All recommendations gathered will now undergo a thorough review at multiple levels, including programme working groups, the Cabinet, and Parliament. This rigorous scrutiny is essential to ensure that the final budget for FY 2026/27 is well-informed, balanced, and aligned with the country’s strategic development goals.

At the press briefing held yesterday at Ridar Hotel in Seeta, we highlighted the significance of this consultative exercise as a cornerstone of transparent, inclusive, and accountable budget planning.

As we move forward, it is critical that all stakeholders—government officials, political leaders, technical teams, and citizens—continue to work collaboratively. By focusing on strategic interventions within key sectors such as ATMS (Agriculture, Tourism, Manufacturing, and Services) and essential enablers, we aim to accelerate economic growth and development, ultimately striving to increase the economy tenfold.

Together, let us commit to this shared vision and collective effort to build a prosperous future for all Ugandans.

Mbarara Hosts Final Local Government Budget Consultative Workshop for FY 2026/27

In Mbarara, the Acting Director for Budget at the Ministry of Finance, Planning and Economic Development, Mr. Hannington Ashaba, officially represented the Finance Minister at the opening session of the final Local Government (LG) Budget Consultative Workshop for the Financial Year 2026/2027.

In his remarks, Mr. Ashaba emphasized the critical importance of aligning local government budgets with national priorities. He called on all participants to ensure that their budget proposals are focused on accelerating economic transformation, in line with the government's vision to grow the economy tenfold. This growth is to be driven by strategic investments in Areas That Matter (ATMs) and key development enablers such as infrastructure, human capital development, innovation, and service delivery systems.

The consultative workshop brought together representatives from several District Local Governments (DLGs) and Municipal Councils (MCs), including Ntungamo, Ibanda, Mitooma, Kazo, and Kasese, along with Ntungamo Municipal Council, Ibanda Municipal Council, and Kasese Municipal Council.

This engagement is part of the broader national budget preparation process aimed at fostering inclusive planning, ownership of development initiatives, and efficient allocation of public resources to priority areas that will catalyze Uganda’s socio-economic transformation.

Regional Local Government Leaders’ Engagement Held in Jinja

A regional meeting bringing together Local Government leaders from Kamuli, Tororo, Butebo, Pallisa, and Kaliro districts is currently underway at Paradise Hotel in Jinja. The event serves as a platform for sharing progress, challenges, and strategies aimed at accelerating socio-economic development across the participating districts.

Among the notable attendees is Hon. Apollo Yeri Ofwono, Member of Parliament for Tororo Municipality. In his address, Hon. Ofwono emphasized the critical role of local leaders in ensuring the successful implementation and monitoring of key government programs such as the Parish Development Model (PDM) and Emyooga. He urged leaders to take full ownership of these initiatives to improve service delivery and drive inclusive development within their communities.

During the meeting, participants are presenting comprehensive reports on a wide range of national development programs and thematic areas. These include:

Agro-Industrialization

Private Sector Development

Tourism Promotion and Development

Human Capital Development

Regional Balanced Development

Sustainable Urbanization and Housing

Integrated Transport Infrastructure and Services

Through these presentations, district leaders are highlighting both achievements and pressing issues that hinder progress in their respective regions.

Some of the key challenges raised so far include:

Limited financial inclusion which affects access to funding for local economic initiatives.

Understaffing in critical departments, hampering service delivery.

Inadequate road infrastructure, which restricts access to markets and stifles economic activity.

Poor product quality, reducing the competitiveness of locally produced goods.

Limited ICT skills and capacity, particularly in revenue collection and data management at the local government level.

This engagement is part of ongoing efforts to foster inter-district collaboration, enhance accountability, and promote the effective implementation of Uganda’s national development agenda under the theme of .

In Mbale, Commissioner Paul Okitoi is representing the Minister of Finance at the Local Government (LG) Budget Consultative Workshop for the Financial Year 2026/2027. This important engagement brings together stakeholders from several local governments, including Busia, Bududa, Bulambuli, Manafwa, Katakwi, Napak, and Busia Municipal Council.

During his address, Commissioner Okitoi, speaking on behalf of the Finance Minister, emphasized the critical role of Accounting Officers in ensuring meaningful participation of political leaders in the entire budgeting cycle—from planning to ex*****on. He highlighted that effective collaboration between technical and political leadership at the local government level is essential for achieving inclusive and accountable service delivery.

Commissioner Okitoi also reiterated that the Ministry of Finance, Planning and Economic Development (MoFPED) places high importance on the budget consultative process as a key mechanism for aligning national priorities with local needs. This engagement is part of the broader strategy to promote transparency, ownership, and improved resource utilization across all levels of government.

At the Mbale workshop, Local Government (LG) leaders made a series of key appeals to the central government aimed at strengthening service delivery and improving local governance. They called for the urgent harmonisation of salaries across all public service cadres to ensure equity, motivation, and retention of staff. Additionally, they emphasized the need for increased financial allocations to LGs, particularly for the development and maintenance of critical infrastructure such as roads and bridges, which are vital for local economic growth and service accessibility.

The leaders also highlighted the pressing issue of unfilled critical positions within local governments. They urged the government to provide adequate wage provisions to enable timely recruitment and staffing, ensuring that LGs are fully equipped to perform their mandates effectively.

Furthermore, the LG leaders proposed key reforms for the next phase of the Uganda Intergovernmental Fiscal Transfers (UGIFT) program. They stressed the need for more transparent and efficient procurement processes, as well as a more equitable and needs-based approach to resource allocation to ensure better impact at the local level.

Concerns were also raised about the operational functionality of facilities established under the UGIFT program, with many still underutilized due to staffing gaps and other logistical challenges. In particular, the delayed recruitment of secondary school teachers under the program was noted as a significant barrier to improving educational outcomes in the affected districts.

The Finance Minister explained that the Budget Strategy for the fiscal year 2026/27 is designed to prioritize significant investment in the initial phase of accelerator actions within the Tenfold Growth Strategy. This overarching strategy is structured around four critical growth sectors, supported by key enabling factors, all grounded in the objective of achieving full monetization and formalization of the economy.

He emphasized that the successful implementation and realization of this Strategy will necessitate a series of reforms and targeted actions aimed at addressing the main constraints limiting productivity. Furthermore, it will require enhancing efficiency within the vital anchor sectors and strengthening the interventions that enable sustainable economic growth. These combined efforts are essential to unlock the full potential of the economy and drive transformative development.

HIV/AIDS & TB Awareness Training:

Dr. Sengonzi Damulira, the Under Secretary and Accounting Officer, officially presided over the HIV/AIDS and TB awareness training session held today for staff of at Hotel Africana in Kampala.

The primary objective of this workshop was to raise awareness among staff about effective strategies and interventions aimed at ending the AIDS epidemic by the year 2030, in line with global health goals.

During his address, Dr. Damulira urged the staff to adopt responsible personal behaviors, emphasizing the importance of faithfulness to s*xual partners, avoiding behaviors that increase risk, and where feasible, practicing abstinence from s*xual activity, alcohol consumption, and drug use. He underscored the significance of safe s*x practices for those who are s*xually active and highlighted the importance of knowing one’s own HIV status as well as that of one’s partner.

Dr. Damulira also called on all staff members to take on active roles as advocates and agents of change in their workplaces, families, and wider communities, fostering an environment that supports the vision of a future free from HIV/AIDS.

Etii Tom, the Director of Partnerships at the Uganda AIDS Commission, contributed to the discussion by stressing the critical need for increased involvement of men in HIV prevention programs. He highlighted the urgency of accelerating HIV testing and treatment services, especially targeting men and young people, to meet the ambitious 95-95-95 UNAIDS targets — meaning 95% of people living with HIV knowing their status, 95% of those diagnosed receiving sustained treatment, and 95% of those on treatment achieving viral suppression.

In addition, Tom emphasized the importance of eliminating mother-to-child transmission of HIV and strengthening institutional effectiveness to ensure a well-coordinated multisectoral response across different sectors and organizations.

The session also featured Rev. Canon Gideon Byamugisha, who shared valuable insights on living positively with HIV/AIDS and TB, encouraging those affected to embrace a healthy and hopeful lifestyle despite their diagnoses.

In Mbale, Dr. Fixon Akonya Okonye, the Internal Auditor General, is representing the Finance Minister during the Local Government budget consultative meetings for the fiscal year 2026/27.

During these sessions, Dr. Akonya Okonye highlighted a recurring challenge where Accounting Officers continue to submit requests to cover shortfalls in wages, monthly pensions, and gratuities, despite the budget for the previous fiscal year 2025/26 having already been approved and passed.

He explained that this persistent issue largely stems from deeper problems related to ineffective budgeting processes and a general lack of fiscal discipline within the system.

Looking ahead to the fiscal year 2026/27, Dr. Akonya Okonye emphasized that there will be a strong focus on ensuring strict compliance with verified payroll audits. This will involve incorporating findings from the harmonization exercise conducted by the Ministry of Public Service () and maintaining the accuracy and integrity of data entered into the program budgeting system. These measures will be critical when preparing all budgets related to salaries, pensions, and gratuities to avoid previous challenges and ensure fiscal responsibility.