The Ministry of Finance, Planning and Economic Development has announced several new policies in its National Budget Framework Paper for 2026/27. These policies aim to grow the economy and improve people’s lives. The government wants to use these initiatives to help the country grow and develop.
The Ministry said Uganda’s economy will grow by 10.4% by the end of the 2026/27 financial year. This is much higher than the expected 6.6% growth at the end of 2025/26. The main reason for this strong growth will be the start of oil production, which will bring in money and create jobs across different sectors.
The Ministry stated in the National Budget Framework Paper that Uganda’s economy was forecasted to expand by 10.4 percent by the close of the 2026/27 financial year, marking a significant growth rate from the estimated 6.6 percent at the end of 2025/26, and that this robust growth outlook would be primarily driven by the commencement of oil production, which was expected to generate substantial revenue and stimulate productivity through strong intersectoral linkages.
The Ministry listed important factors that will help the economy grow. These include making government work better, keeping the country safe, and having the state play a bigger role in development. The start of oil production in 2026 will create jobs and bring in money. The government plans to manage the economy well to prevent oil money from causing economic problems. Other factors include improving education and skills training for people throughout their lives, and supporting private businesses to drive growth and create jobs. The government also plans to build and maintain important infrastructure like roads, housing, water systems, factories, and internet services. Finally, the country will produce more electricity by using different energy sources like solar, thermal, and hydropower.
The Ministry’s budget plan follows the Fourth National Development Plan and the Charter for Fiscal Responsibility. It also addresses gender equality, fairness, and balanced development across the country.
With these plans in place, Uganda’s GDP is expected to grow from 251.450 trillion shillings, which equals $0.068 trillion, in 2025/26 to 290.315 trillion shillings, which equals $0.077 trillion, in 2026/27. This growth should increase income per person to $1,527.1 from $1,399.5 by the end of 2025/26. When measured in Purchasing Power Parity, which is called PPP, GDP is expected to increase from $0.194 trillion in 2025/26 to $0.218 trillion in 2026/27.
The Ministry’s predictions depend on several things. These include the government successfully carrying out its policy plans and the world economy remaining stable. If these growth targets are reached, it would be a major achievement for Uganda’s economy and would likely help the country develop faster.
