Uganda’s economy is on course for its fastest growth in decades, with the government projecting a dramatic expansion driven by the commencement of commercial oil production later this year.
Presenting the National Budget for Financial Year 2026/27 at Kololo Ceremonial Grounds today Thursday 11th June 2026, Minister of Finance, Planning and Economic Development Henry Musasizi said growth is expected to accelerate to 10.2% in FY 2026/27 which would mark Uganda’s first return to double-digit growth since the economic reforms of the 1990s.
The minister said the projection reflects the success of the government’s long-term strategy of investing in security, infrastructure, wealth creation and productive sectors.
The economy is estimated to have grown by 6.4% in FY 2025/26, up from 6.3% the previous year.
By June 2026, GDP is projected at Shs250.4 trillion, or $69.3 billion.
According to the finance Minister, the Uganda shilling remains among Africa’s best-performing freely floating currencies.
Total resources for FY 2026/27 are Shs84.39 trillion, funded by domestic revenue of Shs45.96 trillion, domestic borrowing Shs11.97 trillion, refinancing Shs13.97 trillion, external budget support Shs1.22 trillion, and project financing Shs11.27 trillion.
Key allocations: wages Shs9.71 trillion; non-wage recurrent Shs33.28 trillion; development Shs22.05 trillion; debt refinancing Shs13.97 trillion.
With oil production expected later this year and key indicators improving; the government says Uganda is entering a new phase of accelerated growth that could transform the economic landscape and livelihoods nationwide.
Meanwhile, the Minister of Finance, Planning and Economic Development Henry Musasizi says the government has increased investment in education and skills development, with Shs 6.66 trillion allocated to the sector in FY 2026/27.
Musasizi said the education sector remains central to Uganda’s long-term development strategy and efforts to build a skilled workforce capable of supporting industrialization and economic transformation.
Among the key interventions announced in the budget is an additional Shs 568.65 billion earmarked for salary enhancement for primary school teachers and arts teachers in secondary schools and Business, Technical and Vocational Education and Training institutions.
Government says the salary increment is intended to improve teacher welfare, motivation and service delivery across the education sector.
According to the minister, approximately 9.52 million learners continue to benefit from Universal Primary Education while nearly one million learners are enrolled under Universal Secondary Education and Universal Post O-Level Education programs.
Government also reported progress in expanding access to secondary education through the completion of 90 additional seed secondary schools and the operationalisation of 259 seed schools across the country.