Govt Raises 2026/27 Public Spending Projection to Shs78.2 Trillion

By skika Reporter.

Uganda has increased its projected public expenditure for the 2026/2027 financial year by 12.7 percent to Shs78.2 trillion (about $21.78 billion), up from the earlier estimate of Shs69.4 trillion, the Ministry of Finance Planning and Economic Development announced on Friday.

In a statement posted on the X platform, formerly Twitter, the ministry did not immediately provide detailed reasons for the upward revision.

The government has previously indicated that spending in the next fiscal year will prioritise strategic infrastructure and extractives projects, including the completion of the East African Crude Oil Pipeline (EACOP) to facilitate the start of crude oil production.

Other key priorities include mineral quantification for iron ore, gold and copper deposits, development of a domestic oil refinery, and continued construction of the standard gauge railway.

Uganda’s Permanent Secretary and Secretary to the Treasury, Ramathan Ggoobi, said the 2026/27 budget would emphasise reforms, tighter oversight and improved execution discipline.

“The budget for FY2026/27 will prioritise the ATMS and enablers. Particular attention will be on cleaning up and enforcing execution discipline,” Ggoobi said.

Collaborative procurement reforms

As part of broader public finance reforms, the finance ministry said government will introduce a system of collaborative procurement effective July 1, 2026.

The new framework is aimed at standardising prices, strengthening quality control and achieving better value for money across ministries, departments, agencies and local governments.

Under the arrangement, commonly used items will be aggregated and procured centrally to maximise economies of scale, improve efficiency and ensure consistent standards in public procurement.

In a directive to accounting officers as they finalise budgets for FY2026/27, Ggoobi instructed government agencies not to enter into agreements with development partners on governance matters without prior approval.

“In line with Cabinet Minute 164 (CT 2025), and as you finalise your budgets for FY2026/27, you are directed not to enter into agreements or memoranda of understanding with development partners on governance issues without prior clearance from Cabinet,” he said.

Strengthening planning capacity

Ggoobi also revealed that the ministry is developing a national Planning Strategy to strengthen planning functions across government institutions.

To support the reforms, government has allocated an additional Shs200 million to each planning unit within ministries, and Shs100 million to each agency and local government planning unit.

“The funding is intended to support research-based planning, staff training, equipping of planning units and facilitation of programme-based planning and budgeting,” Ggoobi explained.

He emphasised that the funds must not be diverted to other uses.

“These funds are strictly meant to support research-based planning, equipping planning units, training and overall facilitation of staff in planning units to support the programme approach to planning and budgeting. They must not be diverted for other purposes,” he added.

The revised Shs78.2 trillion spending projection signals government’s continued focus on infrastructure, energy and institutional reforms as Uganda prepares for oil production and long-term economic transformation.