The government has released the first-quarter expenditure limits for the 2026/27 financial year, signalling the start of implementation of its ambitious budget with a strong emphasis on accelerating economic growth, creating jobs and improving service delivery.
Speaking at a press briefing in Kampala on Friday, the Permanent Secretary and Secretary to the Treasury (PSST), Mr Ramathan Ggoobi, said the first-quarter releases have been carefully designed to support Uganda’s economic transformation agenda while safeguarding fiscal discipline and debt sustainability.
The quarterly releases provide spending ceilings for Ministries, Departments and Agencies (MDAs), Local Governments and other government institutions for the period between July and September 2026.Mr Ggoobi said Uganda is entering the new financial year from a position of macroeconomic strength, giving government confidence to pursue its development priorities without compromising economic stability.
“Uganda enters the new financial year from a position of strong macroeconomic stability, characterised by accelerated economic growth, low inflation, a stable Uganda Shilling, increased exports and improving investor confidence,” Mr Ggoobi said.
He added: “The Quarter One expenditure releases have been carefully aligned to sustain this momentum while preserving fiscal and debt sustainability.”
Growth strategy
The Treasury chief explained that government spending during the new financial year will be guided by the Tenfold Growth Strategy, which seeks to transform Uganda into a $500 billion economy through strategic investments in productive sectors.
According to Mr Ggoobi, fiscal policy for the 2026/27 financial year is anchored on two broad objectives: financing Uganda’s economic growth drivers while ensuring prudent management of public resources.
The priority sectors include agro-industrialisation, tourism development, mineral beneficiation, science, technology and innovation, Information and Communication Technology (ICT), and the creative economy.These sectors have been identified as critical engines for increasing production, creating employment opportunities, expanding exports and raising household incomes.
Mr Ggoobi said government will continue directing scarce public resources to programmes capable of delivering measurable economic returns.”Every shilling released must contribute to economic growth, job creation and improved delivery of public services to citizens,” he said.
Prudent spending
The PSST emphasised that expenditure limits for the first quarter were determined after considering expected government revenues, available financing and the approved fiscal framework.
He said the approach is intended to ensure that spending remains within available resources while maintaining implementation of priority programmes.”The expenditure limits have been programmed in line with expected cash flows, availability of financing and the approved fiscal framework to ensure sustainable implementation of government programmes,” he said.
Government, he added, will continue enforcing expenditure controls by limiting non-essential spending while protecting strategic investments that directly contribute to economic transformation.
This approach, according to the Treasury, is expected to strengthen fiscal discipline while ensuring taxpayers receive value for money.
Priority sectors
Among the biggest beneficiaries of the first-quarter releases are security agencies, infrastructure projects and human capital development programmes.Funding has also been earmarked for ongoing government projects that require counterpart financing to unlock external funding from development partners.
The releases further provide resources for operational expenses of Ministries, Departments and Agencies, Local Governments and Uganda’s diplomatic missions abroad to ensure uninterrupted public service delivery.
Mr Ggoobi said government remains committed to completing ongoing infrastructure projects rather than spreading limited resources across too many new initiatives.The Treasury also allocated funds to support preparatory activities for the 2027 Africa Cup of Nations (AFCON), which Uganda will jointly host with Kenya and Tanzania.
Preparations include sports infrastructure, logistics and other strategic investments necessary to ensure the country successfully hosts the continental football tournament.
Accountability call
Beyond announcing the expenditure limits, Mr Ggoobi challenged Accounting Officers across government to ensure timely implementation of approved programmes.
He urged accounting officers to avoid unnecessary delays in procurement, project implementation and service delivery.According to the Treasury, the effectiveness of government spending will be judged not merely by how much money is released but by tangible improvements in the lives of Ugandans.
The PSST reminded accounting officers that citizens expect visible results from every public shilling spent.He stressed that proper planning, timely procurement and strict financial accountability would be essential if government is to achieve its ambitious development targets.
Transparency pledge
Mr Ggoobi reaffirmed government’s commitment to transparency in public financial management.He said making budget information publicly available enables citizens to understand government priorities and hold public institutions accountable.
“Access to budget information enables citizens to understand national priorities and demand accountability in service delivery,” he said.
The Treasury has in recent years increased publication of budget documents, expenditure releases and performance reports as part of broader public finance management reforms.Analysts say greater transparency strengthens public confidence while improving oversight of government expenditure.
Supporting economic momentum
The first-quarter releases come as Uganda continues to register encouraging macroeconomic indicators despite global economic uncertainties.Government has repeatedly pointed to declining inflation, a relatively stable exchange rate, improving export earnings and rising investor confidence as evidence that the economy remains resilient.
Officials believe maintaining fiscal discipline while investing strategically in productive sectors will help sustain high economic growth over the medium term.The Treasury argues that disciplined public spending, coupled with private sector investment, remains essential for achieving the country’s long-term development aspirations.
Beginning of budget implementation
The release of first-quarter expenditure limits officially marks the beginning of implementation of the FY2026/27 national budget.Government expects Ministries, Departments, Agencies and Local Governments to immediately commence execution of approved programmes in line with the National Development Plan and the Tenfold Growth Strategy.
With public expectations high, the coming months will test government’s ability to convert budget allocations into better roads, improved healthcare, quality education, enhanced security, increased agricultural productivity and expanded employment opportunities.
For Treasury, the message is clear: fiscal discipline must go hand in hand with efficient service delivery.As Mr Ggoobi put it, every shilling released must produce measurable results for ordinary Ugandans through faster economic growth, more jobs and improved public services.
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- Charles Gazza Kodili is a seasoned journalist with over 20 years of experience in the media industry. He holds a Bachelor of Arts degree in Mass Communication. He’s currently the Chief Editor at the Investigator.
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Interesting!