The government has set a preliminary resource envelope of Sh79.22 trillion for the 2027/28 financial year, a Sh5.17 trillion reduction from the Sh84.39 trillion framework for the current financial year.
Finance Minister Henry Musasizi presented the FY2027/28 Budget Strategy on Friday during the launch of the Presidential Advisory Committee on Budget (PACOB) at the Office of the Prime Minister in Kampala.
The strategy is intended to guide preparation of the national budget while supporting implementation of the Tenfold Growth Strategy, the Fourth National Development Plan, the National Resistance Movement (NRM) Manifesto 2026–2031 and the Charter for Fiscal Responsibility.
The budget will retain the theme: “Full Monetisation of Uganda’s Economy through Commercial Agriculture, Industrialisation, Expanding and Broadening Services, Digital Transformation and Market Access.”
Prime Minister Robinah Nabbanja, who launched PACOB, challenged the committee to identify what she described as “priorities within priorities” and ensure that public resources generate measurable results.
Nabbanja said the committee should not simply endorse proposals submitted by ministries, departments and agencies but should scrutinise them against the available resources and advise government on what should be funded first.
She asked PACOB members to subject budget proposals to four tests—strategic alignment, evidence of results, implementation readiness and value for money.
“You must be able to tell government what should be funded first and why,” the Prime Minister said, urging the committee to focus on interventions capable of delivering tangible improvements to citizens.
Among the areas she identified for attention are strategic roads, the Standard Gauge Railway, reliable and affordable electricity, irrigation, oil and gas infrastructure, digital connectivity, science, technology and innovation, export promotion, job creation and increasing household incomes.
The committee is also expected to scrutinise programme and sector priorities to ensure that proposed investments are aligned with the country’s development objectives.
Nabbanja directed the Office of the Prime Minister, which serves as the PACOB secretariat, to track recommendations accepted by government through the budgeting and implementation stages.
She ordered the secretariat to prepare a concise action report by November 30 showing progress on the recommendations.
ECONOMIC GROWTH
Minister Musasizi said Uganda’s economy is projected to grow by 7.6 per cent in the 2026/27 financial year before accelerating to 9.1 per cent in 2027/28.
He attributed the anticipated growth largely to the expected commencement of commercial oil and gas production and its linkages to other sectors of the economy.
The minister said oil and gas development is expected to stimulate activity in construction, services, manufacturing and exports, creating wider economic opportunities.
The projections form part of government’s broader strategy to transform Uganda from a largely subsistence-based economy into a more productive and commercially integrated economy.
The FY2027/28 Budget Strategy places particular emphasis on agro-industrialisation, tourism, mineral-based industrial development, science, technology and innovation.
It also prioritises infrastructure development, irrigation, industrial parks, wealth creation funds, regional integration and access to export markets.
REVENUE AND HOUSEHOLD INCOMES
The strategy also places emphasis on increasing domestic revenue mobilisation as government seeks to finance its development priorities while managing available resources.
Government intends to pursue measures aimed at expanding the tax base, improving compliance and strengthening revenue collection.
The Finance Ministry will also focus on mobilising private capital to complement public resources and support investment in productive sectors.
Other priorities include improving the sustainability of enterprises supported through the Parish Development Model (PDM), strengthening loan recovery and developing value chains that can increase production, processing and market access.
Minister Musasizi said the ultimate objective is to translate economic growth and public investment into measurable improvements in household incomes.
The strategy therefore links budget allocations to interventions expected to create jobs, expand production, improve exports and increase household earnings.
INFRASTRUCTURE AND INDUSTRIALISATION
Infrastructure remains central to the proposed budget strategy, with government expected to prioritise strategic roads, electricity, railway infrastructure and irrigation.
The Standard Gauge Railway is among the major infrastructure priorities highlighted by the Prime Minister, alongside investments linked to oil and gas production.
Government also plans to strengthen industrialisation through industrial parks and mineral-based industries, while supporting agro-processing and value addition.
Tourism has also been identified as a key growth area, with the strategy seeking to expand Uganda’s earnings from the sector.
The emphasis on digital transformation is intended to support access to services, innovation, business and wider participation in the formal economy.
PACOB’s role will therefore be to help government make difficult choices within the available resource envelope and ensure that spending is directed towards programmes capable of producing demonstrable results.
The launch of the committee comes as government begins preparations for the FY2027/28 budget, with the strategy providing the policy framework against which spending priorities will be assessed.
The reduced preliminary resource envelope means ministries and agencies will have to compete for funding while demonstrating the expected impact of their proposed programmes.
The government’s stated objective is to use the available resources more efficiently while advancing its long-term economic transformation agenda.
The FY2027/28 strategy will guide the subsequent stages of budget preparation as government works towards presenting the national budget for the financial year beginning July 2027.
