The Minister of State for General Duties, Henry Musasizi, together with the Under Secretary and Accounting Officer, Dr. Sengonzi Damulira, and the technical team, appeared before the Finance Committee of Parliament to present the Ministerial Policy Statement for the Ministry of Finance, Planning and Economic Development (Vote 008).
Musasizi said the economy has demonstrated strong and broad-based growth, expanding by 8.5% in the second quarter of FY 2025/26, up from 5.4% in the corresponding period of the previous financial year.
“This performance reflects effective economic management, supported by strong aggregate demand and sustained investments in productive sectors, particularly ICT, construction, and machinery, which are critical for long-term growth and structural transformation,” said the Minister.
He noted that a major achievement under the Ministry’s mandate of maintaining macroeconomic stability has been the continued decline in inflation, which fell to 2.9% in February 2026 from 3.2% in January 2026. He added that this reflects prudent fiscal and monetary coordination, as well as improved food supply conditions.
Musasizi also said the economy recorded a merchandise trade surplus of USD 147.26 million in January 2026, marking a significant turnaround from previous deficits.
On domestic revenue mobilization, he said net revenue collection for the second quarter amounted to Shs. 16,476.07 billion against a target of Shs. 17,511.59 billion, translating into a performance of 94.09% and representing revenue growth of 8.05% compared to the same period in FY 2024/25.
Regarding preparations for first oil, the Minister said overall progress on the development of EACOP stands at 80%, while engineering studies are ongoing for the oil refinery project.
“The Government expects about Shs. 2.2 trillion from oil revenues in the next financial year 2026/27, of which Shs. 1.4 trillion is programmed to finance the budget,” said Musasizi.
