Uganda’s economy continues to demonstrate resilience and promising growth despite global uncertainties, with real GDP projected to grow by 7% in the financial year 2025/26.
This was revealed today July 15, 2025, by Permanent Secretary and Secretary to Treasury, Ramathan Ggoobi, during a press briefing that also announced the release of Shs 17.18 trillion for the first quarter of the fiscal year.
According to Ggoobi, the country recorded an average growth of 6.9% in the first three quarters of FY 2024/25, driven by government expenditure on public development, increased investments, and recovery of household spending. The size of the economy grew to UGX 226.34 trillion (USD 61.3 billion), up from UGX 203.71 trillion in the previous year.
Ggoobi also said that the macroeconomic environment remains stable, with inflation contained at 3.9% within the government’s 5% target and a strengthening Uganda Shilling, which appreciated by 1.3% against the US dollar in June 2025.
He said that the approved national budget for FY 2025/26 totals UGX 72.38 trillion, with available funds for operational activities standing at UGX 43.4 trillion after servicing debt obligations.
“For the first quarter, government institutions have been allocated UGX 17.18 trillion, representing 23.7% of the annual budget. Key allocations for Q1 focus on wages, pensions, and statutory institutions such as Parliament and the Judiciary, alongside strategic priorities aligned with the government’s Ten-Fold Growth Strategy under the ATMS framework — Agro-industrialization, Tourism, Mineral development, and Science, Technology & Innovation,” he stated.
Ggoobi further highlighted significant investments in security, infrastructure up to UGX 1.5 trillion including rural electrification and road projects and human capital development with notable funding for education, health, and social empowerment programs.
“Revenue collection agencies have also been boosted with fresh funding to enhance tax administration,” he noted.
He issued urgent directives to Accounting Officers to ensure punctual payment of salaries and service providers, avoid incurring domestic arrears, and execute all contracts in Uganda Shillings. Recruitment is strictly controlled to remain within approved wage budgets.
With a robust economy, disciplined fiscal management, and targeted investments, Uganda is well-positioned to sustain growth and improve the wellbeing of its citizens throughout FY 2025/26 and beyond.
