By Tumwine Byaruhanga
Government has released Shs17.44 trillion for the fourth quarter of the 2025/26 financial year, bringing total releases for the year to Shs77 trillion.
Permanent Secretary and Secretary to the Treasury Ramathan Ggoobi said the spending plan is aimed at sustaining momentum under the tenfold growth strategy while keeping within the fiscal consolidation framework.
He said the focus remains on maintaining macroeconomic stability and enforcing fiscal discipline, with expenditure prioritised within available resources.
Preliminary data shows the economy expanded by 8.5 percent in the second quarter of the financial year, up from 5.4 percent recorded in the same period last year.
Average growth for the first half of the year stands at 6.7 percent, compared to 5.8 percent previously, driven by strong demand, investment and exports across key sectors including industry, services and agriculture.
Government projects growth to rise to 7.0 percent by the end of the financial year, up from 6.6 percent, with GDP expected to hit $68.4 billion (Shs251.4 trillion).
Ggoobi said inflation has remained low at an average of 3.3 percent, while the Uganda shilling has held steady, pointing to stable macroeconomic conditions.
The fourth quarter releases prioritise wealth creation and key sectors under the ATMS strategy, including agro-industrialisation, tourism, mineral development and science and technology.
Shs314.9 billion has been allocated to agro-industrialisation, Shs48.6 billion to tourism, Shs24.3 billion to mineral development and Shs184.5 billion to science, technology and innovation.
Government has also released Shs542.3 billion to clear balances under the Parish Development Model, alongside Shs74.7 billion for other wealth creation funds, including support to the Uganda Development Bank and Uganda Development Corporation.
Security agencies will receive a combined allocation, including Shs414.5 billion for the Ministry of Defence, Shs19.9 billion for Police and Shs81.5 billion for Prisons.
Infrastructure remains a major focus, with Shs1.76 trillion allocated to the Ministry of Works and Transport, while the energy sector receives Shs331 billion for electrification and power projects.
In human capital development, the health sector has been allocated Shs372.8 billion, while Shs342 billion has been set aside for the National Medical Stores to procure essential medicines.
Education will receive Shs257.5 billion, with an additional Shs113.7 billion allocated to public universities.
Local governments have been allocated Shs519.8 billion to support service delivery and development projects.
Government has also provided Shs454.2 billion in the quarter to clear domestic arrears, bringing the total released for arrears this financial year to Shs973.1 billion.
Ggoobi said government will continue to align spending with available resources, prioritise payment of service providers and maintain transparency in budget execution as the financial year closes.
