Uganda is poised for a major economic breakthrough as the Government projects a strong acceleration in growth in the 2026/27 financial year, positioning the country for a rapid transition to upper middle-income status.
Appearing before Parliament’s Budget Committee during the briefing on the National Budget Framework Paper (BFP) for FY 2026/27, the Minister of State for General Duties, Henry Musasizi, said Uganda is at its most promising economic inflection point in recent history.
Flanked by the Permanent Secretary and Secretary to the Treasury, Dr. Ramathan Ggoobi, Musasizi revealed that Uganda’s economy grew by 6.3 percent in FY 2024/25, with growth for the current FY 2025/26 projected at between 6.5 and 7.0 percent. Looking ahead, the economy is expected to expand by an impressive 10.4 percent in FY 2026/27.
“This growth will increase the size of the economy to Shs290.2 trillion, equivalent to USD 76.7 billion,” Musasizi told legislators.
He explained that the 2026/27 budget will be anchored on the long-term ambition of expanding Uganda’s economy tenfold by 2040, beginning with a strategy to double GDP every five years under the Fourth National Development Plan (NDP IV).
The strategy will be driven by sustained investments in the Agro-Industrialisation, Tourism Development, Mineral Development and Science, Technology and Innovation (ATMS) sectors, alongside critical economic enablers.
The Minister also highlighted key reform priorities for the coming financial year, including eliminating “budget games” that breed corruption, sealing leakages in routine expenditures such as transfers to schools and health centres, strengthening payroll management, improving cash liquidity and sovereign credit ratings, and diversifying development financing through innovative sources.
Minister Musasizi disclosed that the preliminary resource envelope for FY 2026/27 stands at Shs69.399 trillion, slightly lower than Shs72.376 trillion in the current FY 2025/26.
Earlier, Musasizi, together with the Minister of State for Planning, Amos Lugoloobi, presented the Budget Framework Papers for Vote 008 (Ministry of Finance, Planning and Economic Development) and Vote 130 (Treasury Operations) to the Finance Committee of Parliament.
He said the Ministry of Finance is expected to receive Shs2,693.40 billion in FY 2026/27, down from Shs2,796.77 billion in the current financial year, largely due to the overall reduction in the national resource envelope.
Meanwhile, Treasury Operations (Vote 130) has been allocated Shs28,264.652 billion to facilitate timely debt service payments, redemptions and the settlement of other statutory obligations.
The projections underscore government’s confidence that disciplined fiscal management and targeted investments will unlock faster growth and accelerate Uganda’s journey toward a stronger, more resilient economy.
