KAMPALA — Uganda’s preliminary budget resource envelope for the 2027/28 financial year has been set at Shs79.22 trillion, a Shs5.17 trillion reduction from the Shs84.39 trillion approved for the current financial year.
The figure was announced by the Permanent Secretary and Secretary to the Treasury, Mr Ramathan Ggoobi, as the Ministry of Finance, Planning and Economic Development began preparations for the next national budget.
Mr Ggoobi issued the first Budget Call Circular (BCC) to accounting officers, chief executive officers of State-owned enterprises and public corporations, directing them to prepare their Budget Framework Papers and preliminary estimates for the 2027/28 financial year.
The circular, published on September 18, requires government ministries, departments, agencies and other public entities to align their proposed spending with the national budget strategy and the budget calendar.
“All Accounting Officers are required to prepare the Budget Framework Paper for FY2027/28 in accordance with the Budget Strategy and the budget process calendar for FY2027/28,” Mr Ggoobi said.
The preliminary resource envelope is about 6.1 per cent lower than the current financial year’s budget, placing greater emphasis on domestic revenue mobilisation, expenditure prioritisation and fiscal discipline.
Mr Ggoobi said the reduced envelope would require government entities to align their proposed expenditures with national priorities while limiting requests for programmes outside the agreed framework.
“The preliminary resource envelope for FY2027/28 stands at Shs79.22 trillion. This underscores the need for stronger domestic revenue mobilisation and reduced reliance on borrowing and external financing,” he said.
Seven strategic shifts
The FY2027/28 Budget Strategy identifies seven strategic shifts that will guide the allocation and use of public resources.
The first is revenue-led fiscal consolidation, with government seeking to broaden the tax base through greater use of data and technology, improve compliance, address revenue leakages and strengthen non-tax revenue.
The second is the prudent management of oil revenues as Uganda moves towards commercial oil production. Government says the revenues will be managed in accordance with the Public Finance Management Act.
The third is mobilising private capital for the Agriculture, Tourism, Minerals and Science, Technology and Innovation (ATMS) sectors through innovative financing, public-private partnerships and improvements to the investment environment.
The fourth is accelerating implementation of the Tenfold Growth Strategy, with ATMS identified as key sectors for driving economic expansion.
“Our strategy is to deepen investment in the ATMS as the principal drivers of tenfold growth,” Mr Ggoobi said.
The fifth shift focuses on jobs, exports and household incomes, with government seeking to link economic expansion to productive employment, export growth and higher household earnings.
The sixth centres on wealth creation programmes, including the Parish Development Model (PDM), Emyooga and Presidential Skilling and Industrial Hubs.
The seventh involves strengthening budget reforms, including resource allocation, internal controls, procurement, audit systems and accountability for results.
Finance Minister Henry Musasizi said the strategy would guide preparation of the national budget while supporting implementation of the Fourth National Development Plan, the Tenfold Growth Strategy, the NRM Manifesto for 2026–2031 and the Charter for Fiscal Responsibility.
The budget will retain the theme: “Full Monetisation of Uganda’s Economy through Commercial Agriculture, Industrialisation, Expanding and Broadening Services, Digital Transformation and Market Access.”
Growth outlook
Mr Musasizi said the economy is projected to grow by 7.6 per cent in the 2026/27 financial year before accelerating to 9.1 per cent in 2027/28.
He attributed the projected increase partly to the expected commencement of commercial oil and gas production and its anticipated linkages with construction, manufacturing, services and exports.
“I stated that the economy is projected to grow by 7.6 percent in FY2026/27 and 9.1 percent in FY2027/28, driven principally by the expected commencement of commercial oil and gas production and its wider linkages to construction, services, manufacturing and exports,” Mr Musasizi said.
The budget strategy also identifies infrastructure, irrigation, industrial parks, tourism, mineral development, science and technology, regional integration and access to export markets as areas requiring continued attention.
Government further plans to strengthen value chains, improve the sustainability of wealth creation programmes, recover government loans and mobilise private investment.
Budget consultations
The budget preparation process is also being accompanied by consultations with local governments across the country.
The consultations, which started on September 14, are scheduled to run until October 2 and will cover regional centres including Lira, Jinja, Masaka, Mbale, Hoima, Fort Portal, Kabale, Mbarara, Arua, Gulu and Seeta-Mukono.
At the national budget conference in Kampala, government officials said proposed interventions would be assessed against their contribution to productivity, private investment, export growth and diversification, job creation and household incomes.
Prime Minister Robinah Nabbanja also launched the Presidential Advisory Committee on Budget (PACOB), urging its members to identify priority areas and ensure that public resources deliver measurable results.
The FY2027/28 budget will be the second year of implementation of the NRM Manifesto for 2026–2031.
The Ministry of Finance is expected to consolidate submissions from government entities before refining the resource envelope and preparing the National Budget Framework Paper.
Under the Public Finance Management Act, the Minister of Finance is expected to submit the National Budget Framework Paper to Parliament by December 31, 2026.
The Shs79.22 trillion figure remains preliminary and could change before the final budget estimates are approved by Parliament.
The next stage will involve preparation and submission of Budget Framework Papers, stakeholder consultations and further adjustments to the resource envelope before the final national budget is presented to Parliament.