Ministry of Finance, Planning and Economic Development has disbursed Shs 18.43 trillion to various sectors for the second quarter of the 2025/26 financial year, against a backdrop of significant economic expansion.

Acting Permanent Secretary and Secretary to the Treasury, Patrick Ocailap  while addressing press at ministry of finance Headquarters on Tuesday 14th October 2025, confirmed the economy grew by 6.3% in FY 2024/25, up from 6.1% in FY 2023/24.

“The economy has continued to expand despite the challenging global environment characterised by tighter financial conditions and geopolitical tensions that have disrupted supply chains in recent years,” Ocailap stated.

He also noted a substantial increase in the size of the economy, which reached Shs 227.88 trillion in nominal terms in FY 2024/25, up from Shs 203.71 trillion the previous year.

Ocailap attributed this robust performance to strong domestic drivers. “Growth was largely driven by a sustained recovery in aggregate demand, supported by Government initiatives such as the Parish Development Model (PDM),” he explained.

Looking ahead, the Acting PSST expressed strong optimism, that the real GDP growth is projected at 7% in FY 2025/26 and above 7% in the medium term.

The latest disbursement brings the cumulative half-year release to Shs 38.61 trillion, representing 53.4% of the approved annual budget of Shs 72.38 trillion. The funds are allocated across critical areas including debt servicing, wages, infrastructure, and strategic development programs.

Substantial allocations have been directed towards key sectors. These include Shs 7.07 trillion for debt and treasury operations, Shs 2.13 trillion for public sector wages.

Ministry of Works and Transport to receive Shs 1.7 trillion to accelerate infrastructure projects. Strategic initiatives under the government’s ATM&S growth plan also received significant funding, with Shs 320 billion for agro-industrialization and Shs 471 billion for the Ministry of Health.

Ocailap issued firm directives to all accounting Officers, emphasizing the timely payment of salaries and the prioritization of settling service providers to avoid accumulating domestic arrears.

The government reiterated its commitment to budget transparency, encouraging the public to utilize official channels for detailed information.