Defence and Security will take lion share of Uganda’s 2025/6 national budget totaling to 9.9trillion this website has learnt.
Recently Parliament approved Uganda budget of Shs 72.376 trillion budget for the 2025/26 financial year.
Out of the total budget, only Shs 37.2 trillion is expected to come from within Uganda itself (through taxes and fees), while Shs 11.3 trillion will be borrowed locally, and another Shs 11.32 trillion will come as loans and grants tied to development projects.
There’s also Shs 10.02 trillion set aside for refinancing existing debts essentially using new loans to pay off old ones. On top of that, another Shs 11.33 trillion is going into interest payments alone. This means a significant portion of Uganda’s money will be used to manage debt, rather than finance new development.
Security remains a major focus, receiving Shs 9.9 trillion more than the allocations for transport, agriculture, or even health. This continues a long-standing trend of placing heavy emphasis on defence and policing, even in times of economic strain.
A significant Shs 2.2 trillion is going toward roads, while Shs 2.175 trillion has been set aside for the long-awaited Standard Gauge Railway.
The health sector has received sizeable international support—over Shs 1 trillion from the Global Fund and nearly Shs 200 billion from GAVI. But domestic health spending remains modest in comparison to the country’s needs.
The Uganda Heart and Cancer institutes got Shs 65.5 billion and Shs 42.1 billion respectively for much-needed upgrades, while Shs 623.5 billion was allocated to supply medicine across public hospitals. In education, the budget is pushing forward with secondary school expansion (Shs 244.9 billion) and vocational training (Shs 54.4 billion).
Energy projects, including the Karuma Hydroelectric Power Project and rural electrification, received several hundred billion shillings. Meanwhile, climate-resilient agriculture and irrigation programmes got Shs 127.9 billion, a necessary investment as Uganda continues to face erratic weather patterns and droughts.
Government has allocated Shs 450 billion to the Electoral Commission for 2026 general elections.
On domestic arrears and historical claims, government has allocated Shs 8 billion to clear cattle compensation in Acholi, Lango and Teso.
WHAT’S NEW IN THE 2025/26 BUDGET?
• Total Budget: Shs 72.3 trillion
• Local Revenue: Shs 37.2 trillion
• Borrowing: Shs 11.3 trillion (domestic) + Shs 11.32 trillion (external)
• Top Priority: Development Plan Implementation (Shs 29.5 trillion)
• Security Sector: Shs 9.9 trillion
• Debt Interest Payments: Shs 11.33 trillion
• Health Medicines: Shs 623.5 billion
• Education Expansion: Shs 244.9 billion
• Roads & Rail: Over Shs 4.3 trillion
• Elections: Shs 450 billion
• PDM & Emyooga: Over Shs 1.1 trillion combined
