The government has released Shs16.537 trillion for Quarter Three expenditure in the Financial Year 2025/26, signalling confidence in Uganda’s economic outlook even as the country heads into a politically sensitive election period.
According to the Ministry of Finance, Planning and Economic Development, the release reflects continued fiscal discipline and a commitment to sustaining growth while safeguarding macroeconomic stability.
The economy is projected to grow between 6.5 and 7 percent, supported by steady prices, resilient inflows, and improved sectoral performance.
Permanent Secretary and Secretary to the Treasury Ramathan Ggoobi said inflation has remained stable at 3.1 percent for the last two months of 2025, describing the trend as unusual in an election cycle, when spending pressures often trigger price increases.
He said the stability points to improved coordination between fiscal and monetary policy, as well as disciplined public spending despite heightened political activity.
As Uganda enters the third quarter of the financial year and approaches polling day in the coming days, the Ministry said key economic indicators suggest a stable and growing economy anchored by sound policy management and renewed investor confidence.
Under the Quarter Three expenditure limits amounting to Shs16.537 trillion, Shs2.175 trillion has been allocated to wages, Shs2.898 trillion to non-wage recurrent expenditure, and Shs514 billion to government development.
External financing accounts for Shs3.277 trillion, while Shs7.591 trillion has been set aside for treasury operations and Shs82 billion for local revenue.
Ggoobi said Uganda’s economy continues to demonstrate resilience despite shifts in the global environment and the pressures associated with the election-year business cycle.
Data from the Ministry shows that foreign direct investment rose to $3.5 billion for the year ending October 2025, while portfolio inflows stood at $1.7 billion over the same period.
Remittances increased to $1.6 billion in FY 2024/25 from $1.1 billion in FY 2020/21, and tourism receipts reached $1.7 billion in FY 2024/25.
With Uganda preparing for first oil, Ggoobi said government has allocated Shs469.69 billion in Quarter Three to support continued implementation of key interventions aimed at fast-tracking the start of commercial production.
He said the funding will support development of upstream infrastructure, oil and gas roads, and regulatory oversight, noting that timely execution of these investments is critical to unlocking the sector’s contribution to economic growth, government revenues, and export earnings.
As government pursues its medium-term objective of achieving double-digit economic growth while keeping inflation under control, the Ministry said Uganda is well positioned to withstand both domestic political pressures and global economic uncertainties.
