The government has proposed a Shs40.7 trillion budget for the 2025/26 financial year, prioritizing security, infrastructure, energy, health, and education to drive national development.
The budget estimates are outlined in the Appropriation Bill, 2025, which Minister of State for Finance (General Duties), Henry Musasizi, tabled before Parliament on Thursday, 27 March 2025. The Bill seeks approval for government expenditure up to 30 June 2026.
Sectoral Allocations
The Defence sector has been allocated Shs3.737 trillion to strengthen national security. Of this, Shs1.701 trillion will cover recurrent expenses, while Shs2.036 trillion is earmarked for modernization projects, including equipment upgrades and infrastructure development.
Infrastructure remains a key focus, with Shs5.698 trillion allocated to the Ministry of Works and Transport. The funds will support road construction, maintenance, and quality control measures to enhance Uganda’s transport network.
The government has set aside Shs1.586 trillion for the energy sector. The funds will facilitate oil refinery expansion, renewable energy projects, and mineral exploration to boost energy production and sustainability.
In health, Shs1.398 trillion has been earmarked for development projects. This includes Shs103.8 billion for renovations at Mulago National Referral Hospital and Shs91.5 billion for the Uganda Cancer Institute. Additionally, Shs204.7 billion will cover recurrent medical expenses.
The education sector will receive Shs497.1 billion for operational costs and Shs322.9 billion for capital projects. Makerere University has been allocated Shs33.9 billion to enhance academic programs and upgrade infrastructure.
Agriculture has been allocated Shs611.5 billion for development programs and Shs188.1 billion for operational expenses. The funds will support agricultural research, livestock development, and fisheries management.
Next Steps
Deputy Speaker Thomas Tayebwa, who presided over the session, referred the Appropriation Bill to the Committee on the Budget for review. He emphasized the need for timely processing. “We must expedite this process to align with financial planning timelines,” he said.
