The Ministry of Finance, Planning and Economic Development has released Shs18.43 trillion to various government entities for the second quarter of the 2025/26 financial year, bringing total releases to Shs38.61 trillion, which represents 53.4% of the approved national budget of Shs72.38 trillion.
The announcement was made by the Acting Permanent Secretary and Secretary to the Treasury (PSST), Patrick Ocailap, during a press briefing at the Ministry headquarters on Tuesday.
Ocailap explained that the Q2 disbursement aims to support the implementation of ongoing government programmes, enhance service delivery, and sustain Uganda’s economic growth momentum.
“Out of the Shs72.38 trillion approved for FY 2025/26, the Ministry released Shs20.18 trillion in the first quarter and now Shs18.43 trillion in the second quarter, resulting in a cumulative release of Shs38.61 trillion, equivalent to 53.4% of the annual budget,” Ocailap stated.
He noted that the economy continues to perform strongly, despite the challenging global environment marked by tight financial conditions and supply chain disruptions.
“The economy has continued to expand despite global uncertainties. Growth was largely driven by a sustained recovery in aggregate demand, supported by government initiatives such as the Parish Development Model,”he said.
Uganda’s economy grew by 6.3% in FY 2024/25, up from 6.1% in the previous year, with the nominal GDP rising to Shs227.88 trillion, compared to Shs203.71 trillion in FY 2023/24. Ocailap projected real GDP growth at 7% for FY 2025/26 and above 7% in the medium term, driven by industrialization, infrastructure, and digital innovation.
Key Allocations
Under Statutory Obligations and Institutions, the government allocated Shs7.07 trillion for debt and treasury operations, Shs2.13 trillion for wages and salaries, and Shs339 billion for pensions and gratuities. Parliament received Shs223.64 billion, while the Judiciary was allocated Shs64.06 billion.
To stimulate production and growth under the ATMS Strategy (Agro-industrialization, Tourism, Mineral-based Industrialization, and Science & Technology), several critical sectors were funded:
Agro-industrialization: Shs320 billion for research, operations, and project development.
Tourism Development: Shs 53.65 billion for sector branding, marketing, and hospitality standards.
Mineral-based Industrial Development (including oil and gas): Shs16.64 billion under the Petroleum Authority of Uganda.
Science, Technology, and Innovation: Shs124.25 billion for digital innovation and ICT infrastructure.
Security and Governance
Security and governance institutions also received significant allocations; Ministry of Defence and Veteran Affairs: Shs642.85 billion. Uganda Police Force: Shs161.62 billion. State House: Shs83.97 billion. Uganda Prisons Service: Shs89.67 billion. Office of the President: Shs114.13 billion. ISO and ESO: Shs34.59 billion and Shs18.56 billion, respectively
Electoral Commission: Shs52.71 billion, completing the full funding of its Shs450 billion electoral roadmap for the 2026 general elections.
Infrastructure Development: Works Ministry tops Q2 Releases
The Ministry of Works and Transport received the largest share of the Q2 release of Shs1.703 trillion, with Shs878.68 billion from the Government of Uganda and Shs825 billion from external sources. These funds will support road construction, maintenance, and the completion of Entebbe International Airport.
The Ministry of Energy and Mineral Development got Shs361.55 billion to finance rural electrification, transmission line construction, and power generation projects such as Karuma Hydropower.
The Kampala Capital City Authority (KCCA) received Shs145.68 billion, while the Ministry of Kampala and Metropolitan Affairs was allocated Shs292 billion under the Greater Kampala Metropolitan Urban Development Project.
Human Capital and Local Governments
In the social sectors, the Ministry of Health received Shs471 billion, National Medical Stores (NMS) got Shs205.61 billion, and the National Council of Sports obtained Shs236.77 billion.
The Ministry of Education and Sports received Shs 172.21 billion, while Public Universities were allocated Shs 144.62 billion to support higher education and research.
Local Governments shared Shs390.78 billion, including Shs252.44 billion for capital development projects and Shs138.35 billion for conditional and non-conditional grants.
Domestic arrears and revenue mobilization
The Ministry released Shs187 billion to settle domestic arrears, including utilities, rent, and contributions to international organizations, pending validation by the Auditor General for the remaining balance.
Revenue-generating entities also received funding, with Uganda Revenue Authority (URA) allocated Shs114.9 billion, Uganda Registration Services Bureau (URSB) getting Shs8.45 billion, and National Citizenship and Immigration Control receiving Shs61.42 billion.
“These releases demonstrate government’s continued commitment to ensuring timely implementation of programs that enhance service delivery, infrastructure, and economic transformation,” Ocailap emphasized.
He reaffirmed that the Treasury would continue to monitor budget execution closely to ensure transparency, efficiency, and value for money in the utilization of public resources.
