Africa-Press – Uganda. Uganda has reached what government officials describe as its most promising economic inflection point, with the upcoming Financial Year 2026/27 earmarked as a critical window to accelerate the country’s transition to upper middle-income status.
State Minister for Finance (General Duties), Henry Musasizi, revealed this while briefing Parliament’s Budget Committee on the National Budget Framework Paper (NBFP) for FY2026/27.
He said the government is positioning the next financial year as a launchpad for sustained, high-quality growth.“Financial year 2026/27 is Uganda’s opportunity to fast-track the qualitative leap to upper middle-income status,” Musasizi told legislators.
Flanked by the Permanent Secretary and Secretary to the Treasury (PSST), Dr. Ramathan Ggoobi, the minister noted that Uganda’s economy grew by 6.3% in FY2024/25, with growth for FY2025/26 projected between 6.5% and 7.0%.
Looking ahead, the government projects economic growth of 10.4% in FY2026/27, expanding the size of the economy to Shs290.2 trillion (about USD 76.7 billion).According to Musasizi, the FY2026/27 budget will be guided by the long-term ambition of expanding Uganda’s economy tenfold by 2040.
This will be achieved by doubling GDP every five years as programmed under the Fourth National Development Plan (NDP IV).
“The policy direction will be implemented through sustained investments in the ATMS and key enablers of growth,” Musasizi said, without elaborating on specific sectors but emphasising continuity with NDP IV priorities.
However, the minister acknowledged that several structural challenges remain unresolved. These include “budget games that breed corruption,” persistent leakages in routine expenditures such as transfers to schools, health centres, and the public payroll, as well as weaknesses in liquidity and cash management.
He also highlighted the need to improve Uganda’s sovereign credit ratings and diversify development financing, including tapping into innovative mechanisms.
Despite the ambitious growth outlook, the preliminary resource envelope for FY2026/27 stands at Shs69.399 trillion, down from Shs72.376 trillion in FY2025/26, reflecting broader fiscal constraints.
Musasizi, together with 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.
The Finance Ministry’s budget allocation for FY2026/27 is estimated at Shs2,693.40 billion, down from Shs2,796.77 billion in the current year, mainly due to the overall reduction in the national resource envelope.
Vote 130 (Treasury Operations) has been allocated Shs28,264.652 billion, which will be used to ensure timely processing of public debt service payments, redemptions, and other statutory obligations.
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