Uganda’s next national budget will prioritise stronger domestic revenue mobilisation, tighter fiscal management and greater use of private capital as the government prepares for an economy expected to expand sharply with the start of commercial oil production, Permanent Secretary and Secretary to the Treasury Ramathan Ggoobi has said.
Ggoobi made the remarks after issuing the First Budget Call Circular (BCC) to accounting officers and chief executive officers of state-owned enterprises and public corporations, guiding them on preparation of budget framework papers and preliminary estimates for the 2027/28 financial year.
He said the preliminary resource envelope for FY2027/28 stands at Shs79.22 trillion, down from Shs84.39 trillion for FY2026/27.
According to Ggoobi, the smaller resource envelope reinforces the need for the government to improve domestic revenue collection while reducing its dependence on borrowing and external financing.
Ggoobi outlines seven strategic shifts
Ggoobi said the FY2027/28 budget will be guided by seven strategic shifts, with revenue-led fiscal consolidation and prudent management of oil revenues among the key priorities. The Treasury will also focus on mobilising private capital and accelerating implementation of the government’s Tenfold Growth Strategy.
Ggoobi said the strategy will involve deeper investment in Agro-industrialisation, Tourism, Minerals and Science, Technology and Innovation (ATMS), which the government considers central to achieving faster economic transformation.
“Our strategy is to deepen investment in the ATMS as the principal drivers of tenfold growth,” Ggoobi said.
Oil raises growth projection to 9.1%
Ggoobi said Uganda’s economic growth is projected to accelerate to 9.1% in FY2027/28, from 7.6% projected for FY2026/27. He attributed the expected acceleration largely to the onset of commercial production of oil and gas, marking a significant shift in the country’s economic outlook.
The projection comes as Uganda prepares to enter the oil-producing phase, with the government expecting petroleum production to contribute to economic activity and government revenues.
Ggoobi, however, emphasised the need for prudent management of oil revenues, indicating that the expected petroleum windfall will have to be incorporated into the country’s fiscal framework carefully.
Shs79.22tn envelope signals fiscal restraint
The reduction in the preliminary resource envelope is significant because it comes at a time when government expects stronger economic growth. Ggoobi said the figure underscores the importance of strengthening domestic revenue mobilisation and limiting reliance on borrowing and external financing.
The approach points to a budget strategy in which available revenues will play a greater role in determining government spending, while private capital is expected to contribute more to financing productive investment.
Budget preparations begin
Through the First Budget Call Circular, Ggoobi directed accounting officers to prepare their FY2027/28 Budget Framework Papers in accordance with the approved Budget Strategy and the budget process calendar.
The documents will form part of the process through which government ministries, departments, agencies and public corporations develop their spending priorities ahead of the final national budget.
Ggoobi’s message is that the FY2027/28 budget will be prepared against a different fiscal backdrop: a smaller preliminary resource envelope, stronger emphasis on domestic revenues, greater mobilisation of private capital and the anticipated beginning of commercial oil production.
The government is consequently seeking to align its spending plans with the broader objective of accelerating growth through investment in the ATMS sectors while maintaining tighter control over public finances.
