The Ministry of Finance, Planning and Economic Development has released expenditure limits totalling Shs17.18 trillion to ministries, departments, agencies, and local governments to implement the first quarter (July–September) of the 2025/26 national budget.
The funds, announced by Permanent Secretary and Secretary to the Treasury (PSST) Ramathan Ggoobi, represent 23.7 percent of the approved Shs72.38 trillion national budget and are strategically aligned with the government’s Ten‑Fold Growth Strategy.
The growth plan focuses on four high-impact sectors; Agro-industrialisation, Tourism, Mineral-based Industry, and Science, Technology & Innovation (ATMS), as anchors of Uganda’s economic transformation.
“This year’s budget is deliberately crafted to fast-track the Ten-Fold Growth Strategy,” Ggoobi said while addressing stakeholders during the release of the quarter-one limits. “Our goal is to deliver better services to Ugandans at the lowest possible cost while stimulating sectors that can multiply jobs and exports.”
Allocation Overview
According to the breakdown, the largest allocation, Shs 6.93 trillion has been earmarked for public debt servicing and treasury operations. Government payroll obligations, including wages and salaries, will take Shs 2.26 trillion, while Shs482.76 billion will go toward pensions and gratuities.
Ministries and government agencies have received Shs4.5 trillion for non-wage recurrent spending to sustain day-to-day operations.
This includes Shs249.38 billion for Parliament and Shs468.72 billion for the Electoral Commission. Development projects funded by government will access Shs692.9 billion, while externally funded infrastructure projects, such as the Karuma Hydropower Dam and rural electrification, will receive Shs2.72 trillion.
Entities with authority to retain local revenue, including Uganda Wildlife Authority and Uganda National Oil Company, have been allocated Shs82.17 billion for the quarter.
ATMS Sector Priorities
In keeping with its industrialisation agenda, government has allocated:
Agro-industrialisation: Shs215.28 billion, including Shs152.86 billion for project execution and Shs62.41 billion for agricultural research and operational programmes.
Tourism Development: Shs20.5 billion for destination branding, enforcing hospitality standards, and international marketing.
Mineral-Based Industry and Petroleum: Shs26 billion, channelled through the Ministry of Energy and the Petroleum Authority for strategic minerals and oil development.
Science, Technology & Innovation: Shs139.13 billion, with Shs83.3 billion earmarked for national innovation and Shs33 billion to fund Uganda’s creative sector under the Ministry of Gender.
“We are backing sectors with the greatest multiplier effect—agriculture, tourism, minerals, and innovation—because that is where the ten‑fold growth will come from,” Ggoobi emphasized.
Investment in Human Capital and Infrastructure
Education, health, and social protection sectors have collectively been allocated over Shs1 trillion to support human capital development. Notable allocations include:
Education: Shs143.75 billion for the Ministry of Education and Shs157.73 billion to universities and tertiary institutions.
Health: Shs262.88 billion to the Ministry of Health and Shs173.96 billion to National Medical Stores for essential drugs procurement.
Social Protection: Shs118.23 billion to the Ministry of Gender, supporting programs like the Social Assistance Grants for Empowerment (SAGE).
Specialised institutions such as the Uganda Cancer Institute and Uganda Heart Institute have been allocated Shs80.18 billion, while Mulago and Butabika hospitals will share Shs40.99 billion.
In the infrastructure sector, the Ministry of Works and Transport has been allocated Shs1.08 trillion, of which Shs942.9 billion will be used to clear contractor arrears. The Ministry of Energy will receive Shs420.76 billion for electrification projects and the completion of Karuma Dam.
Kampala Capital City Authority will receive Shs148.32 billion to continue road and drainage upgrades.
Security and Governance
In the security sector, the Ministry of Defence and Veteran Affairs has been allocated Shs719.12 billion. Uganda Police Force (Shs130.73 billion), State House (Shs108.38 billion), Uganda Prisons Service (Shs87.15 billion), the Office of the President (Shs111.4 billion), and intelligence services—ISO (Shs39.2 billion) and ESO (Shs86.9 billion), have also been catered for in this quarter’s budget.
Local governments across the country will share Shs382.03 billion to support administrative functions and priority projects.
Fiscal Discipline and Implementation Guidance
Ggoobi issued a strong directive to accounting officers to observe financial discipline: “Salaries, pensions, and gratuities must be paid by the 28th of every month; no contracts should be signed without a verified budget; and all payments must be executed in Uganda shillings.”
He added that the Ministry would not tolerate the accumulation of fresh domestic arrears and instructed finance committees in all MDAs and local governments to meet and agree on Q1 priorities before disbursing funds.
The Ministry estimates that, after setting aside funds for debt repayment and arrears, Shs43.4 trillion remains genuinely available for programme implementation in the 2025/26 financial year.
With these resources now disbursed, government entities are expected to begin procurement processes, settle pending obligations, and accelerate project rollout across priority sectors in line with Uganda’s national development objectives.
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