Uganda’s government has released nearly US$4.4 billion for public spending in the third quarter of the 2025/26 financial year, underscoring its push to sustain economic recovery while meeting mounting debt obligations and funding priority sectors.
The Ministry of Finance, Planning and Economic Development said the funds equivalent to 16.5 trillion Ugandan shillings will finance wages, debt servicing, development programmes and key growth sectors between January and March.
Treasury data show that debt servicing and treasury operations accounted for the largest share of the quarterly release, reflecting the government’s rising public debt burden. About US$2.0 billion was allocated to domestic and external debt payments, including interest and principal repayments.
Spending on wages and salaries totalled roughly US$580 million, while non-wage recurrent expenditure, which includes operational costs across government agencies, amounted to about US$770 million.
Funding for development programmes stood at around US$137 million, while externally financed projects largely supported by multilateral lenders and bilateral partners received approximately US$870 million, the ministry said.
Finance officials said statutory obligations were fully funded in the quarter, including pensions, gratuity payments and allocations to constitutional bodies. Parliament received about US$24 million, the Judiciary roughly US$7.5 million, and the Office of the Auditor General about US$4.9 million.
The release also supports Uganda’s priority growth agenda under its Agro-industrialisation, Tourism, Minerals and Science, Technology and Innovation (ATMS) framework, which the government sees as central to accelerating economic transformation.
Under the plan, agro-industrialisation received about US$45 million, aimed at boosting agricultural productivity, value addition and farmer incomes. Mineral-based industrial development, including oil and gas activities linked to the country’s emerging petroleum sector, was allocated nearly US$125 million.
Spending on science, technology and innovation amounted to about US$44 million, while tourism development received roughly US$8.7 million, reflecting continued efforts to revive the sector after years of disruption caused by the COVID-19 pandemic.
Infrastructure remained a major focus. The Ministry of Works and Transport was allocated about US$360 million, largely for road construction and maintenance, while the Ministry of Energy and Mineral Development received close to US$125 million to support power generation, transmission projects and oil-related infrastructure.
Social sectors also featured prominently in the quarterly release. The Ministry of Health received about US$93 million, with additional funding channelled to the National Medical Stores, which was allocated roughly US$66 million to procure medicines and health supplies.
Public universities received about US$29 million, while local governments were allocated nearly US$140 million to support service delivery at the district and municipal levels.
Permanent Secretary and Secretary to the Treasury Ramathan Ggoobi said the release was aligned with the government’s commitment to maintaining fiscal discipline while supporting economic growth.
“The third-quarter release prioritises debt obligations, service delivery and key growth drivers, while ensuring that statutory expenditures are fully funded,” Ggoobi said in a statement.
Uganda’s economy has shown signs of recovery, supported by improved agricultural output, rising private consumption and stronger services activity. However, the government continues to face pressure from high debt servicing costs, which consume a significant share of public revenues.
Economists say the structure of the latest release highlights the balancing act facing authorities as they seek to stimulate growth while managing fiscal risks.
With the 2025/26 budget year entering its final months, attention will now turn to execution rates and whether development spending accelerates in line with government targets.
