Government has released Shs21.82 trillion for the second quarter of the 2026/2027 financial year, with Shs10.75 trillion earmarked for debt and treasury operations, leaving the remaining funds to support public services, government operations and development programmes.
The release, announced on Thursday, October 15, 2026, represents approximately 26 percent of the approved annual budget and comes amid pressure on public finances from debt obligations, exchange rate movements and rising international oil prices.
Deputy Secretary to the Treasury Patrick Ocailap said the allocations were guided by government work plans, projected domestic revenue collections, available cash resources and anticipated external financing.
“The second quarter expenditure releases, therefore, seeks to sustain macroeconomic activity, protect essential public services, and finance strategic investments,” Ocailap said.
The Shs10.75 trillion earmarked for debt and treasury operations accounts for approximately 49.3 percent of the total quarterly release. The Ministry of Finance has not provided a detailed breakdown of this amount between principal repayments, interest payments and other treasury operations in the figures reviewed.
Beyond debt and treasury operations, government allocated Shs2.42 trillion for wages and salaries, Shs376.6 billion for pensions and gratuity, and Shs130 billion for verified salary, pension and gratuity arrears.
Parliament received Shs242.5 billion, the Judiciary Shs79.5 billion and the Office of the Auditor General Shs21.2 billion.
The Ministry of Works and Transport received Shs1.48 trillion to support transport infrastructure development and maintenance, making it one of the largest identified allocations among government ministries.
In the health sector, the Ministry of Health was allocated Shs416.5 billion, while National Medical Stores received Shs284.7 billion to support the procurement and distribution of essential medicines and medical supplies.
The education sector received funding through several allocations, with public universities collectively allocated Shs209.1 billion. The Ministry of Education and Sports received Shs154 billion to support its programmes and operations.
Local governments were allocated Shs457.4 billion, including Shs292.8 billion for capital development. Kampala Capital City Authority received Shs223.8 billion to support social services and city development projects.
The Ministry of Energy and Mineral Development was also allocated Shs 337.1 billion.
Director of Budget Hannington Ashaba said economic pressures, including inflation and exchange rate movements, required careful management of public resources.
“Every shilling spent must deliver value for money,”Ashaba said.
He also urged accounting officers to strengthen budget discipline and prevent the accumulation of unpaid bills.
Government has directed accounting officers to operate within expenditure limits communicated through a Treasury circular dated October 8, 2026, and comply with public financial management requirements.
The Ministry has also emphasised the need to validate outstanding salary, pension and gratuity claims, control spending commitments and prevent the accumulation of new arrears.
Currently, government seeks to balance expenditure on public services and development projects with its debt obligations, while maintaining fiscal discipline and debt sustainability.
