By Admin
The Ministry of Finance, Planning and Economic Development has released Shs 18.43 trillion to government institutions for the second quarter of the 2025/26 financial year.
This bringings total disbursements to Shs 38.61 trillion accounting for 53.4 percent of the approved national budget.
As per the allocations, the Ministry of Works and Transport received Shs 1.7 trillion for road projects and completion of Entebbe Airport, while Shs 471 billion went to the Ministry of Health, including Shs 205 billion for National Medical Stores.
The Ministry of Education and Sports received Shs 172 billion, and public universities were allocated Shs 144 billion.
Under the security sector, allocations included Shs 642.8 billion for Defence and Veteran Affairs, Shs 161.6 billion for Police, Shs 89.6 billion for Prisons, Shs 114 billion for the Office of the President, and Shs 52.7 billion for the Electoral Commission, completing the full release of Shs 450 billion for the electoral roadmap.
Local governments received Shs 390.78 billion, of which Shs 252 billion was earmarked for capital development to ensure timely project implementation.
Deputy Secretary to the Treasury Patrick Ocailap said the funds are intended to support implementation of the government’s Ten-Fold Growth Strategy, emphasizing allocations toward the key production drivers of agro-industrialization, tourism, minerals, and science and technology.
According to the ministry, Uganda’s economy “continues to expand despite the challenging global environment characterised by tighter financial conditions and geopolitical tensions.”
Recent GDP figures from the Uganda Bureau of Statistics show that real GDP grew by 6.3 percent in FY2024/25, up from 6.1 percent the previous year, increasing the size of the economy to Shs 227.88 trillion.
Ocailap attributed the growth to “a sustained recovery in aggregate demand, supported by government initiatives such as the Parish Development Model,” coupled with favorable weather and a stable macroeconomic environment.
He projected real GDP growth to reach 7 percent in FY2025/26 and remain above 7 percent in the medium term.
The ministry also reported stable inflation levels, averaging 3.8 percent in the first quarter, and a stronger shilling trading at Shs 3,497 per US dollar in September 2025, up from Shs 3,573 the previous month, largely due to strong foreign exchange inflows from coffee exports, remittances, and offshore investors.
Uganda’s exports grew by 55.4 percent to USD 3.48 billion in the fourth quarter of FY2024/25, while imports rose by 38.5 percent to USD 3.98 billion.
The country’s trade deficit narrowed by 21.1 percent to USD 499.5 million during the same period.
Ocailap has therefore directed accounting officers to prioritise timely payment of service providers, ensure all transactions are executed in Uganda shillings, and avoid committing government funds without approved budgets.
He further urged against the recruitment of new staff without confirming the availability of resources for salaries.
On the procurement process, he reminded the officers that the government had banned the procurement of and payment for services in foreign currencies.
He suggested that the accounting officers convene finance committee meetings to draw priorities in line with the approved budgets for the quarter.
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