By Diana Kintu
The Ministry of Finance, Planning and Economic Development has announced the release of funds for the second quarter of the 2025/26 financial year, alongside a positive outlook on Uganda’s economic performance.
In a press release dated October 14, 2025, the Ministry reported that Uganda’s economy continues to show resilience amid global economic challenges. According to final figures from the Uganda Bureau of Statistics (UBOS), the economy expanded by 6.3 percent in the 2024/25 financial year, up from 6.1 percent the previous year.
This growth, the Ministry noted, reflects a steady recovery in economic activity, with the size of the economy now valued at Shs 227.88 trillion in nominal terms. The improvement has been attributed to increased domestic demand, favourable weather conditions, and the continued implementation of government initiatives such as looking ahead, the Ministry projects even stronger growth of 7 percent for the ongoing financial year (2025/26), signalling renewed confidence in Uganda’s economic stability and development trajectory.
While the overall economic performance is encouraging, Ugandans are experiencing mixed outcomes in their day-to-day lives. The local currency, the Ugandan Shilling, has appreciated against the US Dollar, a development that may ease the cost of imported goods. However, inflation edged up slightly to 4.0 percent in September 2025, mainly due to higher food prices, which continue to affect household budgets.
The report also highlighted positive trends in Uganda’s trade performance. Export earnings rose by 55.4 percent in the last quarter of the 2024/25 financial year, largely driven by a surge in coffee exports. With exports outpacing imports, the country’s trade deficit narrowed, meaning Uganda is now earning more from international trade — a development viewed as a strong sign of economic resilience.
To sustain this momentum, the Ministry announced the release of Shs 18.43 trillion for the second quarter (October to December 2025). This brings the total funds released in the first half of the fiscal year to Shs 38.61 trillion, representing 53.4 percent of the approved national budget of Shs 72.38 trillion.
A large share of these funds has been allocated to critical sectors including infrastructure, social services, debt repayment, and security.
A total of Shs 7.07 trillion has been earmarked for public debt repayments, while Shs 2.132 trillion will cover wages and salaries for civil servants.
The Ministry of Works and Transport has received Shs 1.703 trillion to support major projects including road construction, road maintenance, and the completion of upgrades at Entebbe International Airport.
The Ministry of Energy and Mineral Development will raise Shs 361.55 billion for rural electrification and power generation projects such as the Karuma Hydropower Plant.
The Ministry of Defence and Veteran Affairs has been allocated Shs 642.85 billion, while the Uganda Police Force receives Shs 161.68 billion to strengthen law enforcement operations.
The health sector has received a combined Shs 676.61 billion, with Shs 471 billion going to the Ministry of Health and Shs 205.61 billion to the National Medical Stores for the procurement of medicines and medical supplies.
The Ministry of Education and Sports has been allocated Shs 172.21 billion, while public universities receive Shs 144.62 billion.
The Electoral Commission has been allocated Shs 52.71 billion, marking the final release of its Shs 450 billion budget to support activities under the 2026 General Election roadmap.
In its statement, the Ministry issued firm instructions to all Accounting Officers across government ministries, departments, and agencies. They are required to ensure that all salaries are paid by the 28th of each month, prioritise prompt payment of service providers to prevent the accumulation of arrears, and refrain from recruiting new staff unless there are confirmed funds to cover their salaries.
The Ministry emphasised that adherence to these guidelines is essential for improving fiscal discipline and service delivery in line with the government’s broader economic management goals.