Finance Ministry Unveils Policy Measures to Drive Growth in FY 2026/27 Budget Framework

The Ministry of Finance, Planning and Economic Development has unveiled a raft of policy initiatives aimed at accelerating economic growth and improving the standard of living for Ugandans, as outlined in the National Budget Framework Paper for the Financial Year 2026/27.

According to the ministry, the proposed measures are part of government efforts to stimulate broad-based growth and strengthen the country’s development trajectory. Uganda’s economy is forecast to expand by 10.4 percent by the end of FY 2026/27, a sharp increase from the projected 6.6 percent growth at the close of FY 2025/26.

The ministry attributes the optimistic outlook largely to the anticipated commencement of oil production in 2026, which is expected to generate significant revenues, create jobs and boost productivity through strong intersectoral linkages.

“Uganda’s economy is forecasted to expand by 10.4 percent by the close of FY 2026/27, marking a significant growth rate from the estimated 6.6 percent at the end of FY 2025/26,” the ministry stated in the National Budget Framework Paper. “This robust growth outlook will be primarily driven by the commencement of oil production, which is expected to generate substantial revenue and stimulate productivity.”

The Budget Framework Paper outlines several key drivers expected to support economic expansion. These include strengthening good governance, security and the role of the state in development; maintaining strong macroeconomic management to mitigate potential negative effects of oil revenues; and enhancing human capital development across the entire life cycle.

The ministry also emphasised the importance of supporting the private sector as the engine of growth and job creation, alongside building and maintaining strategic and sustainable infrastructure in transport, housing, water, industry and information and communication technology. Expansion of power generation and supply through diversification of the energy mix, including solar, thermal and hydropower, is also highlighted as a priority.

The National Budget Framework Paper is aligned with the Fourth National Development Plan (NDP IV) and the Charter for Fiscal Responsibility, and meets requirements on gender and equity responsiveness as well as balanced regional development.

If the proposed interventions are implemented successfully, Uganda’s Gross Domestic Product (GDP) is projected to grow from Shs251.450 trillion in FY 2025/26 to Shs290.315 trillion in FY 2026/27. Per capita income is expected to rise to $1,527.1 from $1,399.5, while GDP measured in Purchasing Power Parity (PPP) is forecast to increase from $0.194 trillion to $0.218 trillion over the same period.

The ministry noted that the projections are based on several assumptions, including effective implementation of government policies and continued stability in the global economy. If realised, the projected growth would mark a significant milestone for Uganda and could have a positive impact on long-term national development