Government has allocated Shs10.75 trillion, nearly half of its Shs21.82 trillion second-quarter budget release for the 2026/27 financial year, to debt and treasury operations, leaving the remainder to finance public services, infrastructure and other government programmes.
The Ministry of Finance, Planning and Economic Development said the release, covering the second quarter of the financial year, was equivalent to about 26% of the approved annual budget.
Patrick Ocailap, the acting Permanent Secretary and Secretary to the Treasury, said the funding was intended to sustain economic activity, protect essential public services and finance priority investments while maintaining fiscal and debt sustainability.
The expenditure limits were determined based on annual and quarterly workplans, projected domestic revenue collections, available cash resources and anticipated disbursements from external financing, according to the ministry.
Accounting officers across government institutions have been directed to operate within the expenditure limits communicated by the Treasury.
Debt takes largest share
Of the Shs21.82 trillion released, Shs10.75 trillion has been earmarked for debt and treasury operations, making it the largest expenditure category in the second-quarter allocation.
The government has also provided Shs2.42 trillion for wages and salaries across public institutions, while Shs376.6 billion has been allocated to pensions and gratuities.
Parliament will receive Shs242.5 billion, the Judiciary Shs79.5 billion and the Office of the Auditor General Shs21.2 billion.
The allocations cover government financing obligations, statutory payments and the operational requirements of public institutions alongside development expenditure.
Health and education allocations
The Ministry of Health has been allocated Shs416.5 billion to meet operational requirements, support GAVI vaccine programmes and procure ambulances for constituencies that have not yet received them.
National Medical Stores will receive Shs284.7 billion for the purchase of essential medicines and medical supplies.
The Uganda Cancer Institute and Uganda Heart Institute have been allocated a combined Shs165.5 billion for operations, specialised cancer and cardiovascular services, and development of the nuclear medicine and positron emission tomography (PET) centre.
National and regional referral hospitals will receive Shs94.5 billion.
In education, the Ministry of Education and Sports has been allocated Shs154.6 billion, while public universities will receive Shs209.1 billion.
Works, energy and city development
The Ministry of Works and Transport has received Shs1.48 trillion to support transport infrastructure development and maintenance, including activities involving Uganda Airlines, Uganda Railways, Kalangala Infrastructure Services and the Standard Gauge Railway.
The Ministry of Energy and Mineral Development will receive Shs337.1 billion for rural electrification, electricity transmission lines and power-generation projects.
Kampala Capital City Authority has been allocated Shs223.8 billion for social services and city development, particularly roads.
The Ministry of Kampala Capital City and Metropolitan Affairs will receive Shs67.9 billion for the Greater Kampala Metropolitan Area Urban Development Project, which covers roads, drainage and sanitation.
Agriculture, tourism and science
Under the government’s Agro-industrialisation, Tourism, Mineral-based development and Science, Technology and Innovation (ATMS) priorities, Shs224.5 billion has been allocated to agro-industrial research, innovation and related interventions.
Tourism development and promotion, including the Explore Uganda campaign, will receive Shs48.2 billion.
The Uganda National Oil Company and Petroleum Authority of Uganda have been allocated a combined Shs46.7 billion for interventions aimed at accelerating the country’s first oil production.
Science, technology and innovation initiatives, including internet connectivity, digitisation and the creative industry, will receive Shs372.9 billion.
The government has also allocated Shs260.5 billion to the National Council of Sports to accelerate preparations for the 2027 Africa Cup of Nations, which Uganda is scheduled to co-host with Kenya and Tanzania.
Security and local governments
The Ministry of Defence and Veteran Affairs has been allocated Shs414.7 billion, while the Uganda Police Force will receive Shs74.9 billion and the Uganda Prisons Service Shs92.2 billion.
The Office of the President will receive Shs118.4 billion. The Internal Security Organisation and External Security Organisation have been allocated Shs33.7 billion and Shs25.1 billion, respectively.
Local governments will receive Shs457.4 billion, comprising Shs164.6 billion in conditional and unconditional grants and Shs292.8 billion for capital development.
The Treasury has directed local government accounting officers to prioritise timely project implementation and service delivery within their approved allocations.
The Uganda Revenue Authority has been allocated Shs130.6 billion to facilitate revenue collection, while the Uganda Registration Services Bureau will receive Shs12 billion.
The government has also provided Shs130 billion to clear verified salary, pension, gratuity and utility arrears. Accounting officers have been instructed to validate claims before payment and avoid accumulating new arrears.
The second-quarter release sets spending limits for government entities, with actual expenditure expected to remain within approved allocations and available cash resources.
