As preparations for the 2025/2026 budget begun, Finance Minister Matia Kasaija has outlined the Government's key priorities, guiding its expenditure for the next financial year.

Presenting the budget strategy at the national budget conference in Munyonyo last week on Wednesday, Kasaija emphasized that all accounting officers must prioritize expenditures that drive economic growth and restore the economy to a medium-term growth trajectory.

Kasaija highlighted key targets for the 2025/26 financial year, including raising Uganda's income per capita from the current $1,198 (sh4,453,000) to $1,287.9 (sh4,787,000) and increasing the gross domestic product (GDP) from sh224.204 trillion ($57.5b) to sh250.871 trillion ($63.6b).

The strategy will focus on the first phase of the tenfold growth strategy and agro-industrialization, with an emphasis on fully commercializing farming and adding strategic value for exports.

Other major priorities include boosting tourism, by increasing tourist arrivals fivefold, developing mineral-based industries, including oil and gas, and fast-tracking the quantification and governance of mineral deposits.

The Government also plans to accelerate the delivery of Uganda's first oil. Science, technology,

and Innovation is set to receive special attention, particularly regarding the commercialization of ongoing innovations in pathogen control, vaccines, diagnostics, and therapeutics.

"The budget strategy for the next financial year is based on the tenfold growth strategy, the lessons learned from the National Development Plan III (NDP III), and the strategic direction of National Development Plan IV (NDP IV). This demonstrates continuity in our socio-economic transformation agenda," Kasaija said.

The 2025/26 fiscal year marks the final year of implementing the current National Resistance Movement manifesto (2021-2026) and the first year of the NDP IV.

It will also be the first year of Uganda's ambitious tenfold growth strategy, aimed at expanding the economy from a baseline GDP of $50b in 2022/23 to $500b by 2040. Additionally, the year will see the beginning of the rationalization of public expenditure reform, aimed at consolidating gains from the financial consolidation strategy.

 

STAKEHOLDERS' REACTIONS

Civil society organizations called for the establishment of an independent Civil Society Fund to help them hold the Government accountable, as outlined in Chapter IV of Uganda's Constitution.

Local development partners commended the Government for its transparency in the budget process and pledged continued support.

Richard Rwabuhinga, the president of the Uganda Local Government Association, urged the Government to consider their recommendations in the budgeting process, including increased funding for physical planning, healthcare, road maintenance and agricultural extension services.

Dr Arthur Bainomugisha, the executive director of Advocates Coalition for Development and Environment, praised the tenfold growth strategy but warned that its success hinges on fiscal discipline, sound macroeconomic management, and targeted investments in key sectors, such as agriculture, tourism, and mineral development.

Dr Asuman Guloba, the director of planning at the National Planning Authority, said the identified priorities are crucial for accelerating economic growth.

KasalIja said the tenfold growth strategy aims to fully monetize the economy through encouraging value addition initiatives, such as in agricultural production, Pillar III of the Parish and improve profitability, Development particularly through the Model (PDM), provision of fertilizers and Emyooga, GROW micro-scale irrigation systems. and INVITE In tourism, the Government projects. aims to boost the sector's value to $50b, by improving program infrastructure, enhancing are design to security at tourism sites, supporting farmers, and promoting Uganda with affordable internationally. This will be credited, supported by hiring specialized consultants, upgrading hospitality standards, and enforcing sanitation

regulations.

For the oil and gas sector, the Government will prioritize accelerating investments by pushing forward the construction of the East African Crude Oil Pipeline (EACOP), securing private investors for the oil refinery project, and completing Kabalega International Airport with sh162b in funding.

BUDGET FINANCING

Kasaija said the 2025/26 budget will be financed through domestic and external resources, though external funding has declined.

He said this calls for stronger implementation of the domestic revenue mobilization strategy.

Prime Minister Robinah Nabbanja, representing President Yoweri Museveni, emphasized that this year marks the last phase of the current manifesto's implementation.

"As we head towards the 2026 elections, the Government will provide accountability. I call on all ministers and accounting officers to fully implement government policies to meet our targets, or face accountability for any shortcomings," she said.

 

By Mary Karugaba,

NEW VISION