Museveni Unveils Shs 72 trillion Budget, Says Uganda’s Economy Has Taken Off

President Yoweri Kaguta Museveni presented Uganda’s national budget for the 2025/2026 financial year, noting that the economy is growing steadily and calling on leaders to ensure that allocated funds are used properly.

The budget is worth Shs 72.376 trillion and was presented under the theme: “Full Monetization of the Ugandan Economy Through Commercial Agriculture, Industrialization, Expanding and Broadening Services, Digital Transformation and Market Access.”

Finance Minister Hon. Matia Kasaija delivered the budget at Kololo Ceremonial Grounds on behalf of the President on Thursday, June 12th, 2025, fulfilling Article 155(1) of the Constitution.

President Museveni said Uganda’s economy is now worth $61 billion by exchange rate and $174 billion by purchasing power parity. He declared that Uganda has moved from a least developed to a lower-middle-income country.

“Here, the size of Uganda’s economy is now $61 billion by the exchange rate method and $174 billion by the purchasing power parity method. Given our population, which is about 45 million Ugandans, we are no longer a least developed country. We are now a lower-middle-income country,” said the president.

He highlighted signs of progress like economic growth, stable prices, job creation, and rising export earnings. He also pointed out that Uganda’s GDP has grown over 20 times since 1986.

“GDP growth, and price stability: Are the prices stable or not? Currency stability: Is the currency stable or not? Are jobs being created or not? Are export earnings going up or not? And finally, are foreign direct investments coming in or not? I thought we should note that, because in a long speech like this you may not notice the big picture.”

The budget is based on the Fourth National Development Plan (NDP IV), which focuses on key sectors like agriculture, tourism, minerals (including oil and gas), ICT, and infrastructure.

However, President Museveni warned against poor implementation and misuse of funds. He questioned the handling of money meant for Luweero veterans and cattle compensation in northern Uganda.

“I heard the veterans of Luweero in Lyantonde on Heroes Day raising issues. When I checked, we had already provided Shs 218 billion or something like that for the Kasimo, and it was flipped to be Shs5 million for elders each and Shs1 million for the supporters. So, what happened to this money?”

“For Teso, Lango, and Acholi, we have always spent Shs 200 billion on that, and we have already budgeted Shs 80 billion. So, leaders, follow up on that money.”

The President also turned his attention to public investments in sports, saying, “Then you get things like stadiums. The National Council of Sports needs to explain to us. I hear some money has gone to Kakyeka and a number of them to do some work, others are going to be done massively, and so on. So, the Council of Sports should also explain and brief Maama about this money.”

On security, he defended the introduction of digital number plates as a tool to fight crime, not as a source of fines or revenue.

“I saw some issues about the digital number plates, that people are being fined. I don’t know for what, but the issue about the number plates is not about fines. It’s anti-crime,” he said.

Citing the recent murder of Wayengera Godfrey, 45, a resident of Namumira village in Mukono town, who was killed on June 10, 2025, President Museveni said, “I can’t accept our Ugandans dying because of incomplete infrastructure. Remember when I addressed you in Parliament in 2019, I told you about the cameras you were there with your policemen asking, “Ani eyamulabye?”

He explained that the digital number plates are central to crime-fighting, not revenue collection.

“Let’s go technical. Let’s have smart means. They have helped us solve a number of things. These are digitized number plates with a central command not collecting fines and so on,” he said.

“I think the confusion about fines could be because we didn’t have money and we told these people to put number plates and recover money. The issue is about the number plate being diagnosed. Every vehicle must have a digital number plate traced by a central command to know which cars, which boda was in the area. The issue is not about money. No. It’s about security. They are acting with impunity. This is not about fines. It’s about security.”

He reaffirmed the importance of government programs like NAADs, Operation Wealth Creation, the Parish Development Model (PDM), and Emyooga in fighting poverty.

“The Government, through the budgets, is the one that can help the people to solve their problems. Programs like NAADs, OWC, PDM, Emyooga, etc., have already shown that they can liberate people from poverty,” he said.

He cited tangible examples of economic transformation driven by government science and innovation.

“The current Coffee boom was on account of the Government scientists who developed the improved Clonal Coffee, different from the old variety that people in Bushenyi had abandoned for the Dairy industry. The Dairy industry in the cattle corridor, the Kalangala Palm oil projects, are projects pushed by the government that have transformed people’s lives,” the President noted.

Reject Bribes, Use Your Vote Wisely

President Museveni criticized political bribery and vote-buying disguised as fundraising. He urged Ugandans not to exchange their vote for small amounts of money and called on leaders to fight corruption.

“Not petty money from MPs for fundraising or bribes. The voters need to know that these practices of bribes and fundraising are undermining the voters’ power to elect leaders that will work with the Central Government to solve their problems,” he said.

He encouraged voters to elect leaders who will monitor government money and deliver services, and asked religious and community leaders to question the wealth of politicians offering expensive gifts.

“Do not accept petty money from politicians and throw away your power to elect a leader that can kwemerera (supervise) the money sent to you through the Parish, fight corruption, etc. Once we solve the political corruption that has paralyzed the populist politicians, it will be easy to fight the corruption of the Public Servants,” he said.

Drawing on Uganda’s history of civic engagement, President Museveni called upon the people to be vigilant, insisting that the masses are the true whistleblowers in the fight against corruption.

“It is because we have a reliable source for kurega (whistleblowing). These are the people, the victims of the corruption.”

He further outlined the key drivers of Uganda’s transformation, crediting the NRA/UPDF, the wealth creators in agriculture, manufacturing, services and ICT, government scientists, and patriotic members of the political class who support the NRM programs.

“The big changes that are happening in Uganda, are by the following actors: the NRA/UPDF that liberated the country and has been ensuring peace ever since; the wealth creators in the four sectors. the Government scientists that make innovations, and the responsible members of the political class that have been supporting the NRM programs. It is, therefore, not fair for some actors to spoil these great successes,” the President said.

“Some people say that they give bribes because Museveni is always giving the khaki envelope to members of the population. Do not draw water and mud; do not mix up issues. The brown envelopes I give are part of the ancient traditions here. It is called okurongoora. It is the King who does that to the singers, or wrestlers, etc. The President is the modern ‘King’. You are not ‘Kings’. I have a budget for that. I do not sell my cows to get money to kurongoora singers.”

He condemned the exploitative culture of individual fundraising pushed by politicians, describing it as unsustainable and misleading.

“Fundraising was and is premature. The healthy fundraising is okusonda, whereby you make small equal contributions from many contributors. With the rampant fundraising, the MP carries the whole burden. It is extortion, but it was instigated by the MPs who created the impression that they had the type of money which they did not have,” the President noted.

Challenging the culture of silent approval of suspicious wealth, President Museveni urged elders and church leaders to question the source of lavish donations from young politicians.

“Even the church leaders and other elders should ask those young mistake makers: ‘Naye mwana wange, esente zino zonna, ozigyawa?’ That is what a responsible parent should ask omwana (son or daughter) or omuzukulu (grandchild) if he/she sees him or her throwing around money,” he said.

The President concluded with a firm moral warning: “The responsible parents do not accept stolen gifts from their children.”

Speaker Praises Budget Process

Speaker of Parliament Rt. Hon. Anita Among thanked the President for fulfilling his duty. She said the budget was a result of inclusive consultation and urged all sectors to focus on implementation and accountability.

“Once again, we are honoured to host His Excellency the President as he fulfills his constitutional obligation to deliver the National Budget Speech. We thank him for his unwavering commitment to this important duty,” Speaker Among said.

She noted that Parliament had approved key revenue laws and ministry plans to support the budget.

“Today’s budget reading is a culmination of inclusive engagement. It is the result of cooperation among all stakeholders, and we commend the participatory and transparent nature in which this process has been undertaken,” she said.

As a Parliament that prides itself on being people-centred, Rt. Hon. Among rallied stakeholders to go beyond participation and ensure active involvement in the implementation phase of the budget.

“We urge all players in the budget process to ensure civic awareness, execution, and above all, accountability. Participation should not end with planning. It must carry through to real impact. Participation of our people is not a formality; it is a principle. It reflects the true spirit of our beloved nation,” she affirmed.

She said the legislature had diligently scrutinized and approved ministerial policy statements during the period of April 9th to 16th, ensuring alignment with national priorities.

“During this period, Parliament approved ministerial statements that provided a strong foundation for the budget,” she revealed.

Further, she highlighted that the House passed seven crucial revenue bills aimed at boosting government capacity to raise and manage revenue sustainably.

“These revenue bills are instrumental in enabling the realization of the targets set for the new financial year. They are not just laws, they are economic tools designed to fuel transformation,” said Rt. Hon. Among.

Finance Minister Highlights Growth and Priorities

Finance Minister Kasaija said Uganda’s economy has recovered from past shocks and is expected to grow by 6.4% this year. He credited sound fiscal policies, better infrastructure, and private sector support.

He noted that Uganda met the UN requirements to exit the least developed country status in March 2024. “For the first time, Uganda also met the UN criteria for graduation from the least developed country status in March 2024. This achievement reflects our commitment to inclusive development,” he said.

“Uganda’s economy has fully recovered from previous global, regional, and domestic shocks and is firmly on a path of transformation. We expect to grow by 6.4 percent this coming financial year,” the minister declared.

Hon. Kasaija attributed this economic strength to Uganda’s sound fiscal policies, targeted infrastructure investments, improved access to affordable credit, and strong private sector development, all of which have helped reduce the cost of doing business across the country.

He noted that Education and health remain top priorities, with Shs 11.4 trillion allocated under the Human Capital Development Program, noting that funds will support teacher salary enhancements, classroom construction, digital learning infrastructure, and reforms in the lower secondary curriculum.

“We are also investing in youth skilling through the Presidential Industrial Hubs and the Skilling Uganda Program, to boost employability and productivity,” Hon. Kasaija added.

Key areas in the budget include:

• Human Capital Development: Shs 11.4 trillion for education and health
• Debt Servicing: Shs 28.5 trillion
• Transport Infrastructure: Shs 6.8 trillion
• Parish Development Model: Shs 1.075 trillion
• Emyooga Program: Shs 100 billion
• Uganda Development Bank: Shs 414 billion

He noted that Education and health remain top priorities, with Shs 11.4 trillion allocated under the Human Capital Development Program, noting that funds will support teacher salary enhancements, classroom construction, digital learning infrastructure, and reforms in the lower secondary curriculum.

“We are also investing in youth skilling through the Presidential Industrial Hubs and the Skilling Uganda Program, to boost employability and productivity,” Hon. Kasaija added.

He further highlighted that Debt servicing takes a significant share of the budget, with Shs 28.5 trillion allocated, Shs 11.3 trillion for interest payments, shs 4.9 trillion for external debt, and shs 1.4 trillion for clearing domestic arrears.

The Minister clarified that the budget has been financed by Shs 37.2 trillion in domestic revenue, Shs 11.3 trillion in domestic borrowing, Shs 11.3 trillion from external project support, and Shs 10 trillion for domestic debt refinancing.

The minister mentioned that Transport infrastructure has been allocated Shs 6.8 trillion, with Shs 2.2 trillion going to roads and bridges and Shs1.17 trillion earmarked for the Standard Gauge Railway, noting that it will enhance regional equity.

“We shall prioritise road projects as highlighted by His Excellency the President, including: Puranga-Acholibur (65km), Kampala-Gayaza-Kalagi (33km), Lugazi-Kiyindi (28km), Kabwohe-Nyakabirizi (92.2km), Busega-Mpigi (10kms),” he said.

“On the railway, the government has completed the refurbishment and commissioning of the Mukono-Kampala Metre Gauge Railway. In addition, 375 kilometres of the Tororo-Gulu line are being rehabilitated and will be completed by February 2026.”

To drive household incomes and economic inclusion, key wealth creation programs remain central, he said that the Parish Development Model will receive Shs 1.075 trillion, while Emyooga has been allocated shs 100 billion, and the informal sector Shs 3 billion.

“The Uganda Development Bank will receive Shs 414 billion to support agro-industrial and manufacturing ventures, ensuring access to affordable capital for local enterprises,” Hon. Kasaija announced.

On inflation, the minister said that it is under control.

“Despite global uncertainties, the Uganda shilling has been among the few most stable currencies in Africa.”

The event was attended by Vice President Jessica Alupo, Chief Justice Alfonse Owiny Dollo, Deputy Speaker Thomas Tayebwa, MPs, and members of the diplomatic corps.