Gov't releases 2026/27 budget call, trims spending plan

Uganda’s Ministry of Finance has released the First Budget Call Circular (BCC) for the 2026/27 financial year, outlining government priorities, spending ceilings, and indicative funding for local governments.

Issued by Permanent Secretary and Secretary to the Treasury (PSST) Ramathan Ggoobi, the circular sets the tone for the next budget cycle and aligns planning with the forthcoming Fourth National Development Plan (NDP IV) and the government’s Tenfold Growth Strategy.

Resource Envelope Shrinks

According to the BCC, Uganda’s preliminary resource envelope for FY 2026/27 is projected at Shs 69.399 trillion, down from Shs 72.376 trillion in the current 2025/26 financial year.

Despite the overall decline, domestic revenue collections are expected to rise to Shs 40.090 trillion, up from Shs 36.806 trillion in 2025/26—signalling continued pressure on the Uganda Revenue Authority to widen the tax base.

Budget Strategy and Priorities

Ggoobi stressed that budget preparation must go beyond “firefighting” current challenges. “Accounting officers must anticipate future needs, integrate long-term priorities, and align plans with the Tenfold Growth Strategy and NDP IV,” he said.

The BCC also references the Agro-Industrialisation, Tourism, Minerals, Oil and Gas, and Science (ATMS) priorities, alongside enablers such as infrastructure, governance, and human capital development.

Directives to Ministries and Agencies

Among the key directives, ministries, departments, and agencies are required to:

Deepen public participation in the budget process.
Build consensus and eliminate “budget games” that distort allocations.
Embrace tax-inclusive budgeting to improve transparency.
Prioritise core mandates instead of spreading resources too thinly.

Local governments have been provided with indicative planning figures to begin aligning their budgets with national priorities and the Medium-Term Expenditure Framework.

This is the first in a series of budget call circulars that will refine spending priorities and resource allocations before the 2026/27 budget is tabled in Parliament. The process comes at a time when Uganda is balancing ambitious growth targets under NDP IV with fiscal constraints, debt pressures, and rising demands on domestic revenue mobilisation.