Summary:
- Minister Musasizi emphasized the government’s commitment to maintaining fiscal discipline while focusing on investments that will sustain economic recovery and growth.
KAMPALA: The Minister of State for Finance, Henry Musasizi Ariganyira, has announced that the government will reduce the 2025/26 national budget to UGX 57.441 trillion, a significant drop from the current UGX 72 trillion.
He also confirmed that no new taxes will be introduced in the coming financial year. Instead, the government plans to revise existing tax laws.
Minister Musasizi made the announcement while presenting the 2025/26 National Budget Framework Paper during a plenary sitting on Thursday.
He also highlighted that Uganda’s economy has fully recovered from the adverse effects of the COVID-19 pandemic, which had disrupted businesses and economic growth.
“Our preliminary resource envelope is UGX 57.441 trillion, which we intend to raise through domestic and external sources,” Musasizi stated. “I wish to inform the House that in the next financial year, we don’t plan to introduce new taxes. Instead, we will focus on cleaning up existing tax laws through bills, but no new taxes will be introduced.”
He further noted, “Uganda’s economy has fully recovered and is on a steady growth trajectory, driven by investments in key growth areas. Currently, there is high business and investment optimism in Uganda, with inflation contained at 2.9%, well below the policy target of 5%.”
According to the Minister, the 2025/26 budget will prioritize key economic fundamentals, including: Peace and Security, Roads, Railways, and Electricity
Irrigation, Reducing the Cost of Capital
Human Capital Development in health, education, and water, International Relations and Disaster Management
Minister Musasizi emphasized the government’s commitment to maintaining fiscal discipline while focusing on investments that will sustain economic recovery and growth.
