Uganda Finance Ministry releases Shs 21.82 trillion for Q2 budget

Uganda’s Ministry of Finance, Planning and Economic Development has released Shs 21.82 trillion for the second quarter of the 2026/2027 financial year. This amount represents approximately 26 percent of the approved annual budget. Of these funds, Shs 10.75 trillion is designated for statutory obligations, debt, and Treasury operations, while Shs 2.42 trillion is allocated for wages and salaries, and Shs 376.6 billion for pensions and gratuity.

Deputy Secretary to the Treasury Patrick Ocailap has urged government ministries, departments, and agencies to prioritize essential spending. He noted that rising fuel and food prices, alongside increased borrowing costs, necessitate cutting non-essential expenditures, such as travel, to maintain critical service delivery.

The budget release occurs amid economic challenges, including headline inflation reaching 4.6 percent in September and the Ugandan shilling weakening beyond Shs 4,000 against the US dollar. In response to these pressures, the Bank of Uganda raised the Central Bank Rate from 9.75 percent to 12 percent. While officials argue these measures are necessary to stabilize the currency, some economists have criticized the interest rate hike, suggesting that inflation is being driven by global market trends rather than domestic credit.