The government has released UGX 21.82 trillion for the second quarter of the 2026/27 financial year, about 26% of the approved annual budget, to support essential public services, infrastructure development, and priority economic programmes while maintaining fiscal discipline and debt sustainability.
The Ministry of Finance made the declaration during the quarter two 2026/27 financial year press release on October 15th, 2026.
According to the ministry, the funds will finance key sectors, including health, education, transport, energy, local government services and preparations for the 2027 Africa Cup of Nations (AFCON).
The health sector has received substantial support, with UGX 416.5 billion allocated to the Ministry of Health, UGX 284.7 billion to the National Medical Stores for essential medicines and drugs, and UGX 94.5 billion to national and regional referral hospitals. A further UGX 165.5 billion will support the Uganda Cancer Institute and Uganda Heart Institute.
In education, the government has allocated UGX 209.1 billion to public universities, while the Ministry of Education and Sports will receive UGX 154.6 billion. The National Council of Sports has been allocated UGX 260.5 billion to fast-track preparations for AFCON 2027.
Infrastructure development remains a major priority, with UGX 1.48 trillion allocated to the Ministry of Works and Transport to support transport infrastructure development and maintenance. The Ministry of Energy and Mineral Development will receive UGX 337.1 billion for rural electrification, transmission lines and power-generation projects.
Kampala and the surrounding metropolitan area will also benefit from funding for roads, drainage, sanitation and urban services. Kampala Capital City Authority has been allocated UGX 223.8 billion, while UGX 67.9 billion will support the Greater Kampala Metropolitan Area Urban Development Project.
Local governments will receive UGX 457.4 billion, including UGX 292.8 billion for capital development, to improve service delivery and implement approved work plans.
To strengthen public administration and financial accountability, the government has provided UGX 130 billion for verified salary, pension, gratuity and utility arrears. Revenue mobilisation and regulatory institutions have also received allocations to support their operations.
The expenditure releases come amid economic pressures, including a weakening shilling and rising inflation, prompting closer coordination between fiscal and monetary policies. Nevertheless, Uganda’s economic outlook remains positive, with GDP growth projected at 7.6% in FY 2026/27 and 9.1% in FY 2027/28.
The government also reported export earnings of US$2.89 billion in July and August 2026, up 23.9% from the corresponding period a year earlier, while foreign exchange reserves stood at US$6.7 billion as of October 6th, 2026.
Accounting Officers have been urged to prioritise timely implementation, prudent resource utilisation and accountability to ensure the releases translate into improved public services and sustainable economic growth.
