Minister Kasaija presents UGX 72 trillion National Budget for Financial Year 2025/26 to Parliament and the nation
Photo by Ronald Kabuubi/KMA Updates.
Photo by Ronald Kabuubi/KMA Updates.
Photo by Ronald Kabuubi/KMA Updates.
Kampala, June 12, 2025 – The Minister of Finance, Planning and Economic Development, Hon. Matia Kasaija, has today presented the National Budget for Financial Year 2025/26 to Parliament and the nation. With a total expenditure plan of UGX 72 trillion, the budget seeks to deepen economic transformation, expand domestic revenue mobilization, and consolidate peace and stability – the bedrock upon which Uganda’s growing economy rests.
Presenting the budget under the theme “Full Monetization of the Ugandan Economy through Commercial Agriculture, Industrialization, Expanding and Broadening Services, and Digital Transformation”, Minister Kasaija has emphasized that the country has emerged more resilient and better positioned for sustained growth.
Photo by Ronald Kabuubi/KMA Updates.
Photo by Ronald Kabuubi/KMA Updates.
Photo by Ronald Kabuubi/KMA Updates.
Over the last 15 years, the Ugandan economy has experienced remarkable transformation. The size of the economy has more than tripled, rising from UGX 64.8 trillion (USD 27.9 billion) in FY2010/11 to UGX 226.3 trillion (USD 61.3 billion) in FY2024/25. This impressive expansion places Uganda among Africa’s fastest-growing economies.
The Minister has highlighted several key achievements that have laid a strong foundation for Uganda’s next phase of economic transformation including Peace and Stability: Uganda continues to enjoy total peace and political stability, essential for investment, wealth creation, and economic growth.
He adds that, In March 2024, Uganda met the criteria for graduation from the Least Developed Countries (LDCs) category, a milestone that reflects progress in governance, infrastructure, and social indicators.
Life expectancy has also increased to 68.2 years in FY2023/24 from 63.3 years in 2010/11, driven by better healthcare access, vaccination campaigns, and reduced child mortality with Poverty levels dropping to 16.1% in FY2023/24 from 24.5% in FY2010/11.
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Trade and Export Growth
Uganda continues to diversify its export portfolio and strengthen external trade relationships. As of March 2025: The Middle East was Uganda’s top export destination, followed by the East African Community (EAC), Asia, and the European Union (EU).
Uganda also recorded trade surpluses of USD 186.3 million with the Middle East and USD 117.7 million with the EU.
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Over the past 15 years, Uganda has added 31 new products to its export basket, including high-value goods like ICT equipment, vaccines, gas turbines, batteries, and pharmaceuticals. The country is targeting 50 new “strategic bet” products as part of its industrialisation agenda.
Revenue and Expenditure Framework
Hon. Kasaija has projected that by the end of FY2024/25: Revenue collection will reach UGX 31.9 trillion, or 14.3% of GDP, Total expenditure (excluding debt refinancing) is expected to be UGX 51.53 trillion, resulting in a budget deficit of 7.6% of GDP.
In FY2025/26, the government plans to raise UGX 37.2 trillion in domestic revenue, which will finance about 60% of the budget. The remainder will be funded through external borrowing, concessional loans, and grants.
Key Investment Areas
The 2025/26 Budget prioritizes: Parish Development Model (PDM): By June 30, 2025, UGX 3.3 trillion will have been disbursed to 10,589 parishes, each receiving UGX 100 million annually to uplift households into the money economy. So far, 2.63 million beneficiaries have been reached.
Uganda Development Bank (UDB): The government has capitalized UDB with UGX 1.5 trillion, focusing on industrialisation, agriculture commercialization, and technological innovation.
Hon. Kasaija has stressed that Uganda’s economic future depends on deepening value addition, enhancing productivity, and transitioning more citizens from subsistence to commercial activity. “We have the foundation; now we must seize the opportunity,” he said.
As Uganda embarks on implementing this ambitious budget, the focus remains on accelerating inclusive growth, enhancing domestic capacity, and positioning the country as a regional hub for trade and innovation.