Uganda’s Parliament has officially approved the national budget for the 2025/2026 fiscal year, allocating 72.4 trillion Ugandan shillings (approximately $20 billion) for government spending. The announcement was made on the official parliamentary social media platform late Thursday evening.
The newly sanctioned budget maintains a spending level similar to the current financial year, which stands at 72.1 trillion shillings, signaling fiscal stability in the East African nation as it gears up for major infrastructure and energy projects.
Key Spending Priorities
While the parliamentary update did not specify detailed sector allocations, the Ugandan government has previously indicated that the 2025/26 budget will prioritize agro-industrialization, tourism, and extractive sectors such as petroleum and minerals.
Finance Minister Matia Kasaija is scheduled to formally present the detailed budget breakdown to Parliament on June 12, 2025. The upcoming presentation is expected to provide clarity on how resources will be distributed across ministries and development projects.
Oil Sector and Infrastructure Projects
A significant portion of Uganda’s fiscal strategy hinges on preparing for its first commercial crude oil production, anticipated to begin next year. Current infrastructure developments include the $5 billion East African Crude Oil Pipeline (EACOP), designed to transport Uganda’s oil to global markets through Tanzania’s port facilities.
The pipeline and supporting projects are central to Uganda’s long-term economic vision, promising to transform the country into a key oil exporter in the region.
Budget Approval Amid Controversial Legislation
The budget approval comes at a politically sensitive time, as Uganda also considers legislation that would criminalize self-identification as LGBTQ—a move drawing international criticism.