KAMPALA,Uganda – The Minister for finance and economic development, Hon. Matia Kasaija has today read a Shs72.1 trillion national budget for the 2025/26 financial year, with Shs37.2 trillion expected to be raised through domestic revenue. This accounts for approximately 60% of the budget, while the remainder will be funded through external borrowing and grants.
While delivering the national budget speech at Kololo Independence Grounds, Minister Matia Kasaija ssaid that he economy has demonstrated remarkable resilience in the face of domestic, regional, and global challenges noting that Uganda’s GDP now stands at $61.3 billion.
Security and Infrastructure Development
According to Kasaija, security sector remains a key priority, receiving Shs9.9 trillion in the upcoming budget. Meanwhile, Uganda’s road infrastructure continues to expand, with the country’s paved road network now covering 6,287 kilometers—up from 3,112 kilometers in the 2010/11 financial year.
Fastest-Growing Economy?
While reffering to the Harvard Growth Lab, Minister Kasaija noted that Uganda is among the fastest-growing economies in the world and is projected to become the fastest-growing globally by 2031.
Minister Kasaija attributed this growth to a consistent economic strategy rooted in President Yoweri Museveni’s four guiding principles: socio-economic transformation, patriotism, Pan-Africanism, and democracy.
Kasaija highlighted that the first phase of Uganda Vision 2040 began with the launch of the first National Development Plan (NDPI) in 2010. This was followed by NDPII and the ongoing NDPIII, which concludes this fiscal year. Earlier efforts under the National Resistance Movement (NRM) were focused on restoring peace and national recovery.
Boost for Uganda Development Bank
To accelerate industrialisation and job creation, Uganda Development Bank (UDB) has receive an additional Shs1 trillion in capital during FY 2025/26.
“UDB has become a pillar of our economic transformation agenda, supporting sectors such as commercial agriculture, value addition, tourism, health, education, and construction,” said Minister Kasaija.
As of December 2024, UDB had disbursed Shs2.45 trillion to 607 businesses across Uganda. These investments have so far Created 55,553 jobs, Contributed Shs944.2 billion in taxes, Earned Shs3.3 trillion in foreign exchange, Helped businesses generate Shs3.15 trillion in profits
“UDB is also expanding support for SMEs, youth, and women entrepreneurs, and now operates in 96 districts across Uganda.” Minister emphasized
Wealth Creation and Inclusive Growth
The government has earmarked Shs2.43 trillion for wealth creation initiatives in FY 2025/26. Key allocations include:
- Parish Development Model (PDM): Shs1.059 trillion
- Uganda Development Bank (UDB): Shs1 trillion
- Emyooga programme: Shs100 billion
- Uganda Development Corporation (UDC): Shs187.1 billion
- Agricultural Credit Facility: Shs50 billion
- GROW (for women-led enterprises): Shs231.3 billion
- Presidential Zonal Hubs & youth skilling: Shs58.5 billion
- Microfinance Support Centre: Shs48.5 billion
Minister noted that these initiatives are part of the government’s broader effort to stimulate grassroots enterprise, increase productivity, and foster inclusive economic development.
Tax Relief for Startups
In a bid to support entrepreneurship, the government has introduced a three-year income tax holiday for startup businesses established by Ugandan citizens after July 1, 2025. This move aims to ease the financial burden faced by new enterprises and encourage innovation and investment.
