Government releases UGX 18.4 trillion to drive infrastructure, wages, and service delivery in Q2

Kampala, Uganda — The Government of Uganda has released UGX 18.43 trillion to Ministries, Departments, and Agencies for the second quarter (Q2) of the 2025/26 financial year, reinforcing its commitment to infrastructure development, wage payments, and improved service delivery.

This brings total releases for the first half of the financial year to UGX 38.61 trillion, representing 53.4% of the UGX 72.38 trillion approved national budget.

Announcing the development in Kampala, Mr. Patrick Ocailap, the Deputy Secretary to the Treasury (DST) at the Ministry of Finance, Planning and Economic Development, said the funds are meant to sustain implementation of government programs under the Ten-Fold Growth Strategy while promoting fiscal efficiency and accountability.

Key priorities for the second quarter

The Q2 release focuses on critical areas that directly impact citizens — infrastructure, wages, and human capital development.

Major allocations include:

UGX 7.07 trillion for debt and treasury operations
UGX 2.13 trillion for wages and salaries across government
UGX 1.70 trillion for infrastructure, including roads, transport, and completion of Entebbe International Airport projects
UGX 471 billion for the health sector, covering hospitals, medical supplies, and national referral institutes
UGX 172 billion for education and sports, including public universities and sports councils

Other key sectors receiving funding are agro-industrialization (UGX 320 billion), tourism (UGX 53.6 billion), and science, technology, and innovation (UGX 124 billion). Local governments will receive UGX 390.8 billion to support service delivery and capital projects, while UGX 187 billion has been earmarked for verified domestic arrears.

Fiscal discipline and accountability emphasized

Mr. Ocailap underscored the importance of prudent financial management, directing accounting officers to ensure efficiency, avoid waste, and uphold transparency.

“All accounting officers must ensure salaries, pensions, and gratuities are paid by the 28th of every month,” he said. “No new recruitment should be done without clearance from the Ministry of Public Service, and all government payments must be executed in Uganda Shillings.”

He further instructed ministries and agencies to prioritize timely payment of suppliers and avoid commitments beyond available budget limits to prevent the accumulation of arrears.

Growth and stability

The release comes against a backdrop of steady economic expansion. Uganda’s economy grew by 6.3% in FY2024/25, up from 6.1% in FY2023/24, with the economy’s nominal size increasing to UGX 227.88 trillion.

Inflation averaged 3.8% in the first quarter of FY2025/26, rising slightly to 4.0% in September due to higher food prices. The Ugandan shilling appreciated to an average of UGX 3,497 per US dollar in September 2025, driven by strong remittances and export inflows.

Meanwhile, exports surged by 55% in the last quarter of FY2024/25, narrowing the trade deficit by 21%, signaling improved external performance.

Transparency and public engagement

Reaffirming the Ministry’s commitment to openness, Mr. Ocailap urged the public, media, and civil society to access detailed budget information via the Budget Transparency Portal at www.budget.finance.go.ug

“Our goal is to ensure that every shilling allocated delivers measurable value for Ugandans,” he emphasized. “These releases are designed to keep government programs on track, sustain growth, and strengthen accountability.”