Govt Releases UGX 17.18 Trillion for Q1 of FY 2025/26 as Economy Projects 7% Growth

The Government has released UGX 17.18 trillion for the first quarter (Q1) of the 2025/26 financial year, representing 23.7% of the approved national budget of UGX 72.38 trillion. The announcement was made by Mr. Ramathan Ggoobi, the Permanent Secretary and Secretary to the Treasury, during a press briefing held to update the nation on the state of the economy and guide Accounting Officers on budget execution.

Mr. Ggoobi reported that Uganda’s economy remains resilient despite global uncertainties such as trade tensions and international conflicts. The economy grew by an average of 6.9% in the first three quarters of FY 2024/25, driven by government investment in the Parish Development Model (PDM), growth in fixed capital formation, household expenditure, exports, and private investment.

Real GDP growth is projected at 7% for FY 2025/26, with the economy expected to reach double-digit growth in the medium term. The nominal size of Uganda’s economy rose to UGX 226.34 trillion (USD 61.3 billion) in FY 2024/25, up from UGX 203.71 trillion (USD 53.9 billion) the previous year.

During a press conference at Ministry of Finance on Tuesday, Mr Goobi mentioned the key economic indicators, which reflected positive trends, including: Purchasing Managers’ Index (PMI): 55.6, Composite Index of Economic Activity (CIEA): 178.58 and Business Tendency Index: 59.17

Meanwhile,the annual headline inflation was recorded at 3.9% in June 2025, remaining within the Bank of Uganda’s target of 5%. The Uganda Shilling appreciated by 1.3% against the US Dollar in June, making it one of Africa’s best-performing currencies. This appreciation was attributed to stronger export performance, increased remittances, offshore investments, and sound macroeconomic management.

Uganda’s total export earnings in Q3 of FY 2024/25 stood at USD 2.6 billion, up 39.1% from USD 1.9 billion in the same quarter the previous year. Total exports for the year ending March 2025 reached USD 11.8 billion. Imports also rose to USD 3.05 billion in Q3, up 16.5%, driven by formal non-oil private sector demand. Consequently, the trade deficit narrowed by 39.1%.

Foreign direct investment (FDI) grew by 26.3% to USD 785.79 million in Q3, while remittances increased by 31.4% to USD 304.48 million in the same period.

The UGX 17.18 trillion released in Q1 has been allocated across several key areas:

Statutory and Institutional Funding

• Wages and salaries: UGX 2.26 trillion
• Pensions and gratuity: UGX 482.76 billion
• Parliament: UGX 249.38 billion
• Electoral Commission: UGX 468.72 billion
• Judiciary: UGX 47.37 billion
• Auditor General: UGX 19.14 billion
• National Planning Authority: UGX 53.72 billion

Support to Key Growth Sectors (ATMS)

• Agro-industrialization: UGX 215.28 billion
• Tourism Development: UGX 20.5 billion
• Mineral-Based Industrialization: UGX 26 billion
• Science, Technology & Innovation: UGX 139.13 billion (including UGX 33 billion for artists and UGX 83.3 billion for STI projects)

Security and Governance

• Ministry of Defence and Veterans Affairs: UGX 719.12 billion
• Uganda Police Force: UGX 130.73 billion
• Uganda Prisons Service: UGX 87.15 billion
• State House: UGX 108.38 billion
• Office of the President: UGX 111.4 billion
• ISO and ESO: UGX 39.2 billion and UGX 86.9 billion respectively

Infrastructure and Utilities

• Ministry of Works and Transport: UGX 1.076 trillion
• Energy and Mineral Development: UGX 420.76 billion
• Kampala Capital City Authority: UGX 148.32 billion

Human Capital Development

• Ministry of Education and Sports: UGX 143.75 billion
• Public Universities and training institutes: UGX 157.73 billion
• Ministry of Health: UGX 262.88 billion
• National Medical Stores: UGX 173.96 billion
• Ministry of Gender, Labour and Social Development: UGX 118.23 billion
• Uganda Cancer and Heart Institutes: UGX 80.18 billion
• Regional Referral Hospitals (incl. Mulago and Butabika): UGX 40.99 billion
• Local Governments: UGX 382.03 billion

Revenue-Generating Institutions

• Uganda Revenue Authority: UGX 114.9 billion
• Uganda Registration Services Bureau: UGX 9.71 billion
• National Citizenship and Immigration Control: UGX 40.43 billion
• Uganda National Bureau of Standards: UGX 26.44 billion

Compliance and Efficiency Emphasized

Mr. Ggoobi emphasized the government’s focus on technical efficiency and accountability in service delivery. He instructed Accounting Officers to: Pay salaries, pensions, and gratuities by the 28th of every month, avoid accumulation of arrears by paying service providers promptly, ensure payments are made in Uganda Shillings, avoid recruitment without clearance from the Ministry of Public Service, and hold Finance Committee meetings to agree on priorities in line with the approved budget.

He reiterated that the budget is aligned with the Ten-Fold Growth Strategy, focusing on the ATMS sectors (Agro-industrialization, Tourism, Minerals, and Science & Innovation) and their enabling sectors like infrastructure and security.