Presenting Uganda's sh72 trillion budget : As it happened

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 BUDGET READING 2025 

Presented and edited by Joseph Kizza
(Scroll down this page to view earlier updates)
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 6:46 PM  

 END OF LIVE TEXT PAGE 
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 6:45 PM  

HOUSE ADJOURNED SINE DIE

Speaker Anita Among has adjourned the House sine die. This means no date of resumption has been appointed.

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 6:40 PM  

Museveni ends budget speech
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 6:36 PM  

'Digital number plates are for anti-crime, not fines'

"The issue about digital number plates is not fines. It is anti-crime," says the President, following mounting public outcry over what has been described as excessive fines imposed on traffic offenders in recent weeks.

Referencing the murder this week of 45-year-old Mukono school director Godfrey Wayengera, a victim of kidnap, Museveni says: "I cannot accept Ugandans dying because of an incomplete infrastructure."

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 6:33 PM  

'They will have to answer'

"What are the districts doing with the sh1.3 billion sent to them [for road maintenance]?" asks Museveni, following complaints reaching him about poor feeder roads in different parts of the country.

"I am now going to send my spies quietly to check on some of these roads and once I find the road is not worked on and yet the government people are there — the CAO [chief administrative officer] is there, he is quiet, the DISO is there, the GISOs are there — I will go for them. They will have to answer.

"If the sh1.3 billion is not enough, tell us," says the President.
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 6:28 PM  

'President is the modern king'

"The big changes that are happening in Uganda are by the following actors," says Museveni, listing them as:

▪️ National Resistance Army/UPDF that liberated the country and has been ensuring peace ever since
▪️ Wealth creators in the four sectors of agriculture, manufacturing, services and ICT
▪️ Government scientists that make innovations
▪️ Responsible members of the political class that have been supporting the NRM programmes

"It is, therefore, not fair for some actors to spoil these successes," says the President.

"Some people say they give bribes because Museveni is always giving the khaki [brown] envelop to members of the population. Do not draw water mixed with mud. Do not mix up issues. The brown envelops I give are part of the ancient tradition here. It is called okurongoora. It is the king who does that to the singers or wrestlers, etc. President is the modern king. You are not kings. I have a budget for that.

"I do not sell my cows to get money to kurongoora singers. Stop trying to be like the one who is bigger than you."
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 6:21 PM  

'Do not accept petty money from politicians'

On corruption, President Museveni says voters need to know that practices of bribes and fundraising are overthrowing the voter's power.

"You are overthrowing your own power by electing people because they have given you money — because then you are bound to elect leaders that will work with the central government to solve the problems of the voters such as infrastructure, supervising wealth funds that are being stolen by parish chiefs, etc," he says.

"Do not accept petty money from politicians and throw away your power to elect a leader that can kwemerera (supervise) the money sent to you through the parish or to fight corruption in your area.

"Once we solve the problem of political corruption that has paralyzed the populist politicians, it will be easy to fight the corruption of the public servants."
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 6:00 PM  

Museveni expresses his disappointment over what he calls the current political class' failure to revive the spirit of undugu to inspire the ultimate realization of political federation.

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 5:56 PM  

'Uhuru but no undugu'

"We should never allow trade imbalances among member states to persist," says President Museveni, as he re-echoes the three historical missions of prosperity, strategic security, and brotherhood and the four ideological principles of patriotism, pan-Africanism, socio-economic transformation, and democracy.

He talks about what could have been with the realization of one political authority: East African Federation.

He says it's "pity" that while nations achieved uhuru (independence), they did not achieve undugu (brotherhood).
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 5:21 PM  

The President says he will focus on the two areas he promised to talk about at the end of his State of the Nation Address last week: East African federation and corruption.

He starts with a historical account of the birth of the East African federation idea.
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 5:19 PM  

Museveni also points to the section where the finance minister spoke of Uganda's economic stability.
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 5:17 PM  

Museveni delivers Budget Speech

The Speaker invites the President to deliver his Budget Speech. He obliges and starts off by making selective references to finance minister Kasaija's delivery.

He cites where the minister mentioned that in nominal terms, the size of the economy is estimated at sh226.3 trillion ($61.3 billion) in FY 2024/25 rising from sh203.7 trillion ($53.9 billion) in FY 2023/24.  This is equivalent to $174.2 billon in Purchasing Power Parity terms.

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 5:14 PM  

Minister concludes Budget Speech

After a delivering his speech of nearly three hours, finance minister Matia Kasaija steps off the lectern with concluding remarks addressed the the different stakeholders in the country.

"Uganda’s economy has taken off," he says. "The economic fundamentals – GDP growth, price stability, currency stability, jobs, export and FDI receipts – are in good shape, and highly competitive regionally and globally."

Kasaija dedicates the 2025/26 budget "to all the wealth creators, particularly the youth and women."
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 5:07 PM  

'Uganda’s debt is sustainable'

The finance minister says the stock of Uganda's public debt is projected at $31.5 billion, equivalent to sh116 trillion, by end June 2025. 

Of this, he says external debt accounts for $15.49 billion, equivalent to sh56.3 trillion, and domestic debt $16 billion, equivalent to sh59.77 trillion. 

"As a ratio of GDP, our public debt is estimated at 51.26 percent, which is consistent with the Charter of Fiscal Responsibility," says Kasaija.

"Madam Speaker, Uganda’s debt is sustainable and is projected to remain so in the medium to long term. The debt has financed investments that support private sector growth by providing the requisite infrastructure." 
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 5:03 PM  

TAX MEASURES

Next up, the finance minister presents key highlights of changes in the tax laws.

He says the government has granted a three-year income tax holiday for start-up businesses established by citizens after July 1, 2025.

The government has granted an exemption from capital gains tax on transactions where an individual transfers asset to a company they have established but also under their control.

The government has granted an income tax exemption to Bujagali Energy Limited for one year up to June 30, 2026 in accordance with our contractual obligations. 

The government has removed stamp duty on mortgages and agreements. 

The government has extended the waiver period of any interest and penalties outstanding as at 30th June 2024, provided that the taxpayer pays the principal tax by June 30, 2026. 

On Electronic Fiscal Receipting and Invoicing System (EFRIS), the penalty structure has been amended so that the penalty for non-compliance will instead be twice the tax owed by the taxpayer.  

"We have increased the taxes on cigarettes to discourage consumption but also generate additional revenue," says Kasaija.

"The government has removed the excise duty rate of 30 percent or sh950 per litre, whichever is higher, on beer manufactured from barley that is grown and malted in Uganda, because it was redundant.

"Also, Government has adjusted the excise duty on beer manufactured with local raw material content of at least 75 percent by weight of its constituents, excluding water, to 30 percent or Shs 900 per litre from 30 percent or sh650 per litre, whichever is higher. 

"I have imposed a small fee of one percent of the customs value on taxable items under the common external tariff. This measure seeks to align Uganda’s tax policy with those of other EAC partner states, where similar fees have been imposed," says the finance minister.

The government has also imposed an export levy of $10 per metric tonne of wheat bran, cotton cake or maize bran to encourage local value addition, particularly in the production of animal feeds. 

"The NRM Government has listened to our traders dealing in imported textiles for value addition. As they requested, the import duty on imported fabrics has been reduced," says Kasaija.

"Effective  July 1, 2025, the duty will be $2 per kilogramme or 35 percent, whichever is the higher, down from $3 per kilogramme or 35 percent, whichever is higher. In addition, the import duty on garments has been reduced to $2.5 per kilogramme or 35 percent, whichever is higher, from $3.5 per kilogram or 35 percent, whichever is higher."
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 4:48 PM  

Sh72.376 trillion budget

The finance minister says the total resource envelope for FY 2025/26 amounts to sh72,376,481,502,103.

He then goes on to break down the details of the resource envelope and expenditure allocations.
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 4:47 PM  

On eliminating domestic arrears

We learn that the government has put in place a strategy to eliminate domestic arrears in three financial years starting FY 2025/26. 

Kasaija says payment of domestic arrears will prioritize  suppliers of goods and services, contractors, and compensations for land and to war claimants.

"Madam Speaker, I have increased the allocation for domestic arrears to sh1.4 trillion from sh200 billion provided this financial year."

To prevent accumulation of new arrears, starting next financial year, the finance ministry says it will implement the following measures:

▪️ enforcement of the commitment control system
▪️ sanctioning accounting officers responsible for creation of any new arrears
▪️ providing and ringfencing adequate counterpart funding for multi-year projects

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 4:45 PM  

Shielding Ugandans from disasters

To manage natural disasters, Kasaija says the Government invested sh200.3 billion in early warning systems, mitigation interventions and provision of relief items to affected households and communities in the disaster-prone areas. 

For FY 2025/26,  the finance minister has provided sh20.7 billion plus a Contingency Fund of sh169 billion to support disaster management. 

He says he has also provided sh12.4 billion for improving meteorological services and early warning systems to improve efficiency and accuracy of weather forecasting for agriculture, air travel, and climate change tracking. 

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 4:42 PM  

Legislation and oversight

Kasaija announces that sh1.03 trillion has been allocted for legislative processes, public engagements and outreach, providing parliamentary oversight of democracy and governance, and ensuring accountability for public funds and implementation of public programmes.

In the financial year ending this June, Parliament held 75 sittings and passed 35 bills, concluded 3 petitions, passed 45 resolutions and adopted 53 reports.

"Most importantly, the turnaround time for enactment of legislation has reduced significantly," says the finance minister.
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 4:40 PM  

Administration of justice

The finance minister tells Parliament that he has provided sh602.7 billion next financial year under the Administration of Justice Programme for;

▪️ strengthening alternative dispute resolution
▪️ increased use of technology in justice delivery
▪️ building more courts to improve access to justice
▪️ increasing the civil jurisdiction of magistrates’ courts
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 4:38 PM  

Dealing with corruption

Kasaija underlines that the government is stepping up the fight against corruption.

"We are automating all Government processes to reduce human interaction and ensure traceability, investing in more performance and forensic audits, and enforcing accountability," he says.
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 4:36 PM  

The finance minister says he has provided sh9.9 trillion for:

▪️ consolidating Uganda’s security through continued modernization and professionalization of the security agencies
▪️ improving the welfare of the security forces
▪️ undertaking general elections in 2026
▪️ increasing access to justice, law and order services
▪️ strengthening immigration and border security
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 4:34 PM  

On war claimants

In his speech, Kasaija says that security, good governance and the rule of law "are the foundation for socio-economic transformation".

He says that a total of sh142.9 billion has been paid to 53,592 claimants under the cattle compensation in the Acholi, Lango, and Teso sub-regions since financial year 2021/22.

"I have provided Shs 80 billion next financial year to pay the remaining claimants. In addition, I have provided sh15 billion for ex-gratia (akasiimo) of the Luwero War victims," says the finance minister. 

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 4:28 PM  

Kasaija says that in 2025/26, he has provided sh308.9 billion "to further support infrastructure development in industrial parks, including roads, waste management, drainage, and utilities; and sh187 billon for capitalization of UDC".
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 4:26 PM  

Energy development

Kasaija goes on to mention the milestones registered in the development of Uganda's energy infrastructure. For instance, he says installed electricity generation capacity has now reached 2,051.6 megawatts.   

"Access to electricity has increased to 60 percent from 57 percent in FY 2023/24, after connecting over 197,000 new customers."

He says sh1.04 trillion has been allocated for priority interventions, including additional investment in UEDCL to ensure affordable, efficient, and reliable distribution of electricity to consumers.

Other interventions here include enhancing access to electricity as well as commencing development of new power generation plants to meet the growing demand.  
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 4:23 PM  

Sh6.92 trillion for...

The finance minister says he has provided sh6.92 trillion next financial year for integrated transport and infrastructure services, including roads, bridges, railways, water transport and air transport. 
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 4:19 PM  

Air transport...

Kasaija says the competition brought about by Uganda Airlines "has forced other regional airlines to reduce the cost of air tickets".

"The airline is supporting trade and tourism in addition to business air travel. The national airline is now the largest operator and has 24 percent market share of all air travel out of Entebbe Airport, up from four percent in 2019. 

"Its revenue has increased to sh319 billion in FY 2023/24 from sh28 billion in FY 2019/20," he says.
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 4:19 PM  

Water transport...

Kasaija says the government will continue to operate and maintain ferries next financial year in addition to continued development of Bukasa Port, completing construction of the two ferries for Bukungu-Kaberamaido-Kagwara, and the two ferries for Lake Bunyonyi.
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 4:18 PM  

Railway transport...

The minister says that in 2025/26, railway transport priority interventions will include;

▪️ completing the rehabilitation of the Tororo-Gulu Metre Gauge Railway line
▪️ refurbishment of the Mukono-Jinja Metre Gauge Railway line
▪️ construction of the Standard Gauge Railway from Kampala to Malaba

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 4:18 PM  

On infrastructure devt

The finance minister says the government is revamping the road and drainage infrastructure within the entire Greater Kampala Metropolitan Area (GKMA).  "A total of sh1.4 trillion has been dedicated to improving roads and drainage within GKMA."

He adds: "To deal with traffic congestion arising out of the gridlock generated by roundabouts, all major junctions are being improved and signalled with traffic lights. The Kampala Flyover and Road Upgrading Project has been completed."

Kasaija says construction of 10 bridges is ongoing at an average of 74.7 percent progress.

"Government has significantly increased the budget for road infrastructure development. I have allocated an additional sh790 billion, bringing the total budget for roads to Shs 4.28 trillion," he says, before mentioning the projects that will be prioritized in FY 2025/26.
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 4:12 PM  

Sh835.98b for STI

The minister says that to support Business Process Outsourcing (BPO), the government has licensed over 50 companies that have created over 10,000 jobs mainly for the youth that provide online services internationally.

Then on creative arts, he says the government provided s10 billion to the creative arts industry "to support the artists to recover from the effects of COVID-19, and create a revolving fund to support young talents to create wealth and jobs".

Kasaija says sh835.98 billion has been allocated STI, including ICT and the creative arts industry. 
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 4:09 PM  

On Science, Technology and Innovation

We learn that the government invested in vaccine development and commercialization as well as innovations in therapeutics, diagnostics and other healthcare tools

It has also invested in a coffee factory in Ntungamo to fast-track local value addition to coffee. The banana value addition facility in Bushenyi district in western Uganda has started production.

"Government has continued to expand internet connectivity and digital infrastructure across the country," says Kasaija. "The geographical coverage of broadband internet connectivity stands at 72 percent of the country, covering 4,387 kilometres."
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 4:06 PM  

On Science, Technology and Innovation

In his speech, the finance minister says Science, Technology and Innovation  (STI), which includes ICT and creative arts, "provide an important avenue for the country to develop high-tech exports and add new sources of growth and jobs".

He then highlights the milestones achieved in the development of the knowledge economy, including the completion and operationalization of the Kiira vehicle plant in Jinja.
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 4:00 PM  

Sh875.8 billion for mineral-based industrial development

Kasaija says that sh875.8 billion has been allocated next financial year for mineral-based industrial development including oil and gas. He says that in the oil and gas sector, the Tilenga and Kingfisher oil projects are on track for first oil production in 2026. 

He also says that Kabalega International Airport is nearly complete, and over 700 kilometres of roads have been constructed in the Albertine Region to support commercial production of oil and gas.

Additionally, Government is expediting the finalization of the 1,443-kilometre East African Crude Oil Pipeline (EACOP), which is now 58 percent complete.

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 3:55 PM  

Sh430b for tourism

Minister Kasaija says Uganda’s tourism sector "continued to recover", with tourist arrivals increasing by 7.7 percent to 1.37 million in 2024, from 1.27 million in 2023. 

He adds that tourism earnings grew by 26 percent to $1.28 billion in 2024, up from $1.02 billion in 2023. 

The finance minister says he has allocated sh430 billion towards direct investment in tourism next financial year, which is in addition to about sh2.2 trillion provided for other tourism support investments.

He says the focus next financial year will be on:

▪️ branding and marketing of Uganda as a tourism and investment destination
▪️  infrastructure development in tourism sites
▪️ construction of refreshment centres and highway sanitation facilities
▪️ improving and enforcing hospitality standards and training
▪️ promoting health tourism by investment in specialised health facilities. 
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 3:52 PM  

Sh1.86T for agro-industrialization

A total of sh1.86 trillion has been allocated next financial year towards deepening agro-industrialisation, says the finance minister.

He says these funds will support investments in:

▪️ agricultural research
▪️ agricultural inputs including fertiliser
▪️ water for irrigation
▪️ extension services
▪️ agro-processing and value addition
▪️ post-harvest handling and storage facilities
▪️ inspection, surveillance, certification, enforcement of quality standards, and market access. 
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 3:49 PM  

More on agro-industrialization

We also learn that government established five zonal agricultural mechanization centres in Namalere, Buwama, Bunghokho, Agwata and Sanga to support equipment access and tractor hire services.

Government also introduced the large-scale commercial farmer interest-free credit facility of sh175 billion.

"This facility will help to increase production and productivity for improved food security and exports. The loan facility can be accessed through Government-owned banks, namely Post Bank, Housing Finance Bank, and Pride Bank Limited," says Kasaija.
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 3:45 PM  

On agro-industrialization

The finance minister tells Parliament and the nation at large that the interventions in agro-industrialisation in FYs 2024/25 and 2025/26 "have prioritized research, increase in productivity, commercialisation and value addition in agriculture".

He mentions some of the key achievements in 2024/25 as including research and genetics development of selected value chains as well as increasing agricultural production and productivity.

The minister says another 145 solar-powered irrigation and water supply schemes have been completed across the country. 

"Government completed Usake Dam in Kaabong, and Ongunga Dam in Katakwi for livestock, irrigation and fish farming. In addition, 5,251 small- and medium-scale irrigation schemes were established in 135 districts."

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 3:42 PM  

Minister Kasaija says that in order to accelerate full monetization of the economy through the various wealth creation programmes, he has provided sh2.43 trillion in FY 2025/26.
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 3:38 PM  

Wealth creation initiatives

The finance minister says wealth creation programmes have "proved effective in integrating lower-income Ugandans into the economy". He goes on to highlight the "opportunity-equalizing initiatives that Government has implemented", including their respective shares of the national budget for FY 2025/26.

They include;

▪️ Parish Development Model (PDM) - sh1.059 trillion 
▪️ Agriculture Credit Facility (ACF) - sh50 billion
▪️ Uganda Development Bank (UDB) - sh1 trillion
▪️ Emyooga - sh100 billion
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 3:30 PM  

Shs 366.1b for water, sanitation & environment

"Madam Speaker, to improve the quality of life, Government continues to invest in the provision of safe water, improve sanitation and ensure protection of the environment," says the finance minister. 

He adds that he has provided an additional sh366.1 billion next financial year for water resources management, climate change mitigation, natural resources, and environment.

Here, the priority interventions include:

▪️ construction of water supply infrastructure to increase service in underserved communities in rural, urban, and refugee settlements
▪️ increasing rehabilitation and expansion of existing Water, Sanitation and Hygiene (WASH) infrastructure
▪️ increasing forest and wetland cover. 
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 3:26 PM  

Sh404.9b for social protection

Minster Kasaija says sh404.9 billion has been set aside for social protection in FY 2025/26.

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 3:21 PM  

Sh5.04 trillion for education & sports

Listing some of the milestones achieved in the education sector, the minister says the government provided access to UPE for 9.52 million learners and 995,116 learners under USE and Universal Post O’ Level Education and Training.

He also says over 5,192 students, both on degree and diploma programmes, benefitted from the Higher Education Students’ Loan Financing Scheme.

Kasaija says that in preparation for CHAN and AFCON27, the government has so far spent sh496.8 billion for the construction of Hoima and Akii Bua Stadia as well as the associated training facilities across the country.  He adds that government will spend a total of sh1.34 trillion to get these facilities completed.

He says sh5.04 trillion has been allocated for priority interventions in the sector.
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 3:18 PM  

Health priorities

The minister says health sector interventions will include:

▪️ Functionalising Health Centre IVs
▪️ Strengthening primary healthcare and community health services
▪️ Scale-up of National e-Health Infrastructure
▪️ Promotion of nutrition education and reproductive health
▪️ Continued deployment of Community Health Extension Workers
▪️ Strengthening the National Ambulance and Emergency Referral System
▪️ Construction of specialised health facilities for cancer and cardiovascular care 
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 3:13 PM  

Sh5.87 trillion for health

The minister goes on to provide accountability for financial year ending and the priorities for FY 2025/26.

In the health sector, for instance, he says the government continued to invest in saving the lives of Ugandans by providing sh721 billion for healthcare supplies, general and essential medicines under the National Medical Stores (NMS). 

"Government continued to improve healthcare infrastructure and equipment," says Kasaija, adding that government also implemented interventions for preventive healthcare for disease prevention and promotion of healthy lifestyles. 

The minister says he has allocated a total of sh5.87 trillion for the health sector for FY 2025/26. 
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 3:09 PM  

Of revenue collection...

The minister says the government plans to collect sh37.2 trillion in domestic revenue in FY 2025/26, which will finance about 60 percent of the national budget. He says the rest of the budget will be financed through borrowing and grants.
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 3:09 PM  

Of revenue collection...

Turning to fiscal performance, the finance minister says Uganda's revenue collection is projected at sh31.9 trillion this financial year ending June 2025, which is equivalent to about 14.3 percent of total domestic economic output or GDP.

The total expenditure outturn is estimated at sh51.53 trillion this financial year, excluding Bank of Uganda securities and domestic refinancing (debt rollover). 

The budget deficit is estimated at 7.6 percent of GDP, says Kasaija.
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 3:06 PM  

Tourism earnings, remittances grow

Kasaija also reveals that Uganda's tourism earnings have grown by 13.1 percent to $1.52 billion in 12 months to March 2025, from $1.36 billion during the same period in 2024. 

He says this "impressive" growth is attributed to the sustainable peace, increased competitiveness of Uganda’s tourism industry and Government investment in strategic tourism infrastructure, including Uganda Airlines. 

We also learn that remittances from Ugandans living and working abroad increased to $1.4 billion from $1.33 billion.

Kasaija says Uganda has maintained its top ranking as one of the best investment destinations in Africa. 
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 3:04 PM  

We also learn from the finance minister that the year ending March 2025, the Middle East was Uganda’s top export destination, followed by the East African Community (EAC), Asia and the European Union.

The main export commodities to these markets were coffee, industrial and mineral products, he says.
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 3:01 PM  

'Historic coffee export earnings'

On external sector development, the finance minister says total exports of goods and services for the 12 months to March 2025 is $11.8 billion, up from $ 9.56 billion for the same period in 2024.

He also tells Parliament that "this financial year, first time in the history of Uganda, coffee export earnings not only exceeded the one-billion-dollar mark, but are on track to double to $2 billion per year".

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 2:58 PM  

The minister says the price of money has reduced to an average of 17.7 percent per year in March 2025 from 18.1 percent in November 2024. 

He says the decline was partly driven by the slight reduction in the Bank of Uganda reference interest rate and increased lending at lower interest rates to lower-risk borrowers.

Kasaija also says the stock of private sector credit grew to sh23.3 trillion in March 2025 from sh21.9 trillion last June, representing a growth of 6.4 percent. 
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 2:56 PM  

Inflation 'under control'

Kasaija tells Parliament that Uganda's inflation is "under control". 

He says that by the end of May 2025, the speed at which prices of goods and services rose "slowed to 3.4 percent, compared to 4.1 percent in the same period a year ago".

He adds that the country's inflation is expected to remain below the policy target of five percent per annum.

On exchange rate, Kasaija says the Uganda shilling has been among the few most stable currencies in Africa, adding that the shilling appreciated by four percent year-on-year in April this year compared to the same month in 2024. 
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 2:53 PM  

'Economy to grow faster'

The minister says Uganda's economy is expected to "grow faster" by at least seven percent in FY 2025/26, and to double digits at the onset of oil and gas production. 

He adds that the size of the economy is projected to expand to sh254.2 trillion ($66.1 billion) in FY 2025/26. 

Kasaija says this will translate into a higher GDP per capita of $1,324 in FY 2025/26 compared to $1,263 estimated for 2024/25.
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 2:51 PM  

'Economy has strengthened its resilience'

In his speech, finance minister Kasaija says Uganda's economy "has strengthened its resilience to domestic and external shocks, and is estimated to grow by 6.3 percent this financial year 2024/25".

He says that in nominal terms, the size of the economy is estimated at sh226.3 trillion ($61.3 billion) in FY 2024/25 rising from sh203.7 trillion ($53.9 billion) in FY 2023/24. 

He says this is equivalent to $174.2 billon in Purchasing Power Parity terms.

He also says the "impressive" economic performance has been driven by the President’s "commitment and deliberate investment in wealth creation initiatives" — and he goes on to list these initiatives over the last decade.

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 2:48 PM  

Focus on people, wealth creation

Kasaija says Uganda's budget for 2025/26, and over the medium term, "is focused on people and wealth creation", thus the theme remaining:

Full monetization of Uganda’s economy through commercial agriculture, industrialization, expanding and broadening services, digital transformation and market access. 
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 2:45 PM  

Achievements

The minister highlights some achievements realized in the last 15 years. For instance, he says, Uganda's economy more than tripled to sh226.3 trillion ($61.3 billion) in FY 2024/25 from sh64.8 trillion ($27.9 billion) in FY 2010/11.

He says that in 2024, Uganda graduated from the category of Least Develope Countries (LDCs) and that the country's life expectancy has improved.

"The population living within a five-kilometre radius of a health facility is now 91 percent," adds Kasaija, also pointing out that poverty has decreased to 16.1 percent in FY 2023/24 from 24.5 percent in FY 2010/11.

The finance minister also says inequality has declined, installed electricity generation capacity has increased fourfold and that they economy has diversified from the traditional 3Cs (coffee, cotton and copper) and 3Ts (tobacco, tea and tourism) to "a more sophisticated economy".
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 2:40 PM  

Kasaija says the 2025/26 budget will conclude the implementation of the current NRM Manifesto and start the implementation of the Fourth National Development Plan (NDPIV). 

"For the next 15 years, the successive National Development Plans will implement the Tenfold Economic Growth Strategy — aimed at expanding the size of the economy to $500 billion by 2040, from $61.3 billion estimated this financial year 2024/25."

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 2:38 PM  

'Uganda among fastest growing economies'

Kasaija honours President Museveni for his leadership "that has built a resilient, stable, transformative and competitive economy that is attractive to investors".

He then goes on to say that "Uganda is among the fastest growing economies in the world and is projected to become the fastest growing by 2031, according to the Harvard Growth Lab".

The minister points this growth to "a unique economic ideology...built on the four principles of socio-economic transformation, patriotism, Pan-Africanism and democracy".
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 2:36 PM  

 BREAKING NEWS  

Finance minister delivers Budget Speech

In his introduction, minister Kasaija says he is presenting to Parliament and the people of Uganda the national budget "on behalf of His Excellency the President".

He goes on to say that he will:

▪️ Provide accountability on the performance of the commitments made by the NRM Government for the first half of the Uganda Vision 2040
▪️ Present the recent performance of the economy and outlook
▪️ Account to the people of Uganda on the commitments that Government made for the financial year 2024/25 as well as the and priority areas of the 2025/26 budget
▪️ Highlight the financing strategy for the 2025/26 budget.
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 2:33 PM  

After Speaker Among concludes her opening remarks, she invites finance minister to deliver the Budget Speech (on behalf of the President).

He obliges and walks over to the lectern to do so.
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 2:14 PM  

Parliamentary sitting under way

The House, chaired by Speaker Anita Among, is now well and truly in session. Anthems start us off.

A prayer will follow.

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 2:06 PM  

 BREAKING NEWS 

President Museveni arrives

President Yoweri Museveni, accompanied by First Lady Janet Museveni, is now at Kololo. They are received by Parliament's hierarchy, led by Speaker of Parliament Anita Among and her deputy, Thomas Tayebwa.

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 1:55 PM  

More arrivals...

Kololo continues to fill up.

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 1:40 PM  

 BREAKING NEWS 

Finance minister arrives at Kololo

The man with the brown briefcase has arrived at the venue. Finance minister Matia Kasaija is soaking up all the attention.

Out of his vehicle on a warm Thursday afternoon, the minister, briefcase in one hand, walks on the red carpet towards the well-ornated tent. But before he gets there, he pauses for a photo opportunity with other ministers of his docket.

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 1:28 PM  

Finance minister heads to Kololo

Live TV images are showing the official vehicle of finance minister Matia Kasaija on its way to Kololo Ceremonial Grounds, the venue for today's parliamentary sitting.

All eyes will be on him. It's going to be a long speech, that I can say. He has done this a couple of times before, so he is definitely set.
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 1:21 PM  

An East African affair

Meanwhile, other East African nations are also presenting their respective budgets today.

For instance, to Uganda's east, Kenya's Cabinet Secretary for the National Treasury and Economic Planning, John Mbadi Ng’ongo, is set to present the nation's 2025/2026 budget his afternoon.

In Rwanda, finance minister Yusuf Murangwa will also do the same, as will his Tanzanian counterpart Dr Mwigulu Nchemba.

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 12:49 PM  

📝 The Order Paper

Following last Thursday's State of the Nation Address parliamentary sitting, today's will be the second sitting of the first meeting of the fifth session of the 11th Parliament of Uganda. The presentation of the National Budget is done in fulfilment of Article 155(1) of the Constitution.

Here is the Order Paper for today's special sitting:

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 12:28 PM  

The theme

Full monetization of Uganda’s economy through commercial agriculture, industrialization, expanding and broadening services, digital transformation and market access.

That, up there, is the theme for the 2025/2026 National Budget.
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 12:15 PM  

💬 REACTIONS: 'Waiver is a good boost'

In Thursday's New Vision:

As you would expect, various stakeholders have been reacting to the proposals in the 2025/26 National Budget.

One of them is Thadeus Musoke Nagenda (pictured below), the chairperson of the Kampala City Traders' Association, who says he is happy with this year's budget because it addresses most of the traders' concerns.

He applauds the government for introducing a three-year tax holiday for startup businesses.

"The waiver is a good boost, and we are very happy with that. The infrastructure development is also good because it indirectly facilitates a reduction in the cost of doing business."

But Musoke also urged the government to address the cost of financing by reducing its appetite for domestic borrowing. "When the government borrows domestically, it competes with us and ends up complicating the process for us."

He appeals to the government to invest in evironment protection and also put up a specil fund for traders who want to change from importation to manufacturing.

John Walugembe (pictured below), the executive director of Federation of Small and Medium-sized Enterprises-Uganda, says this year's budget, like the previous one, focuses more on agro-industrialization, tourism, manufacturing, science and technology.

"There are so many exemptions I have noted in the budget aimed at boosting businesses. The new taxes will affect customers who choose to consume those products, such as beer and cigarettes," says Walugembe.

"Those are products of choise and not necessities. They are meant to deal with behaviours."

Margaret Nassanga (pictured below), the co-ordinator of Uganda Alcohol Policy Alliance, welcomes the tax, adding that a higher tax should have been instituted to make it more stringent.

"The government spends a lot on rehabilitating an alcohol addict. The cost of treating mental illnesses and addiction is too high."

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 11:45 AM  

New proposed taxes

In Thursday's New Vision:

When finance minister Matia Kasaija stands before the lectern to present the national budget, we expect him to announce a raft of changes in Uganda's tax regime.

One of the taxes introduced is an import declaration fee on goods for home use — expected to raise sh79 billion. Minister Musasizi said the revenue from this fee will be channeled to the construction of the Standard Gauge Railway, adding that this tax measure will "make imports more expensive, promoting import substitution and supporting local industries".

▪️ Sh305b released to kickstart SGR works

The government is also proposing a waiver on interest and penalties for taxpayers who voluntarily pay outstanding principal tax by June next year. This initiative is estimated to generate sh200 billion, and it aims to encourage voluntary compliance.

Following an outcry over excessive penalties for non-compliance with the Electronic Fiscal Receipting and Invoicing System (EFRIS), the government has been prompted to revise the penalties. Currently, businesses face a flat penalty of sh6 million per invoice. New penalties will be twice the tax owed.

The government plans to introduce an export levy on raw agricultural commodities such as wheat bran, cotton cake and maize bran — in a bid to promote local value addition. The products named there are currently exported as raw materials and reimported into Uganda as finished goods.

The government believes the new move will encourage agro-industrialization and boost local processing of animal feeds.

The government is also proposing a three-year income tax holiday for start-ups established by Ugandan citizens, with this exemption seen to encourage entrepreneurship. This will be a welcome relief for local start-ups, which usually grapple with high costs that limit their growth potential.

The government also seeks to eliminate stamp duty on agreements, memoranda of understanding (MoUs) and mortgage deeds to reduce borrowing costs for businesses and individuals.

The government also plans to impose a sh1,500 per litre tax on undenatured spirits of alcoholic strength of over 80 percent made from locally produced raw materials. Undenatured alcohol is ethanol that has not been mixed with other substances to make it unsafe for human consumption.

The government further proposed that sh1,700 per litre be imposed on locally produced spirits of alcoholic strength by volume of less than 80 percent.

The new tax laws will centralize the gaming and gambling payments gateway system that will be linked to the URA electronic notice system. Under the new law, an operator of a casino, gaming or betting activity shall only receive a wager or money staked. Only payouts will be made through the gaming and betting centralized payments gateway.

The tax measures imply that the gaming and betting industry will face stricter enforcement, ensuring all players contribue fairly to tax revenues.

Under the value added tax (VAT) amendment law, the government proposed exempting textile inputs from VAT. The law outlines the textile inputs for exemption as including;

▪️ wet processing operations and garmenting
▪️ cotton lint
▪️ artificial fibres for blending
▪️ polyester staple fibre
▪️ viscose
▪️ textile dyes and chemicals
▪️ garment accessories
▪️ textile machinery spare parts
▪️ industrial consumables for textile production
▪️ textile manufacturing machinery and equipment

The law will further see solar lanterns — deep cycle batteries, solar lanterns and raw materials for the manufacture of deep batteries — exempt from VAT.

Biomass pellets have also been lined up for VAT exemption. The case for this is that it will promote environmental sustainability by encouraging the adoption of clean energy.

A zero tax rate has also been proposed on aircraft supply.

The proposed amendments also introduce the anti-fragmentation rule, a move aimed at combating tax evasion by preventing importers from intentionally splitting consignments to remain below the VAT registration threshold.

Tax on locally sourced raw materials for beer making increased from sh650 to sh900. The tax on imported starch has been raised from 25 percent to 35 percent.
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 11:26 AM  

Replacing TIN with NIN

In Thursday's New Vision:

Today's New Vision print edition reports that one of the tax changes expected to be announced by finance minister Matia Kasaija in his budget speech this afternoon is a shift from the tax identification number (TIN) to the national identification number (NIN).

The paper says the Government intends to replace the TIN with the NIN with effect from July 1 — as part of efforts to ease tax collection. This proposal was contained in the Tax Procedures Code (Amendment) Bill approved by Parliament in March this year and assented to by President Museveni.

Parliament's budget committee reasoned that replacing the TIN with the NIN ensures continuity even when the taxpayers' details such as names and address are updated. In the National Development Plan IV, it is also proposed that Ugandans start using NINs in all commercial transactions such as bank withdrawals and land sales.

In March, finance state minister Musasizi said the government had proposed "a modest tax policy measure" expected to generate an additional sh538.6 billion. He said the government would also generate sh1.8 trillion from the URA administrative measures.

Musasizi said the taxes are a crucial part of Uganda's social and economic transformation, designed to help enterprises grow, reduce the cost of doing business and enhance revenue mobilization in the coming financial year (2025/26) and the medium term.
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 11:17 AM  

'I will talk about corruption'

In his State of the Nation Address last Thursday, President Yoweri Museveni said he would talk about corruption and the East African federation in his Budget Speech today.

Finance state minister (general duties) Henry Musasizi had said that the government was stepping up efforts to eradicate corruption in revenue collection.

He said "we are recruiting more than 1,200 staff to boost our numbers and reach more taxpayers, especially high network individuals in businesses like construction and transport".

Meanwhile, URA commissioner general John Musinguzi Rujoki says no country can develop without taxes.

"As URA, we are required to collect that money very well and submit it to the finance ministry for development. As leaders, we have agreed that no one will work in URA without integrity. We want zero tolerance to corruption. We have also adopted new technology to enhance revenue collection."
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 11:10 AM  

'Fiscal prudence should remain a priority'

In Thursday's New Vision:

In their report to Parliament on the 2025/26 budget, legislators sitting on the parliamentary budget committee noted that over the years, budgets approved by Parliament have not performed well. They cited the 2023/24 budget of sh52.7 trillion, which was later revised to sh61.6 trillion through supplementary budgets.

The government was only able to raise and spend sh48.6 trillion, a performance of 78.9 percent outturn — mainly attributed to shortfalls in revenue outturns and external financing.

With this in mind, for the 2025/26 budget, Parliament's budget committee recommended that the government develops capacities to project reliable budget resources or cash flow.

"Fiscal prudence should remain a priority with policies aimed at containing the debt-to-GDP ratio below 50 percent. This is in addition to the acceleration of domestic recevnue mobilization by broadening the tax base, especially in the digital economy through strict enforcement mechanisms," reads the committee's report.

In a minority budget report, Kiira Municipality MP Ibrahim Ssemujju Nganda noted that whereas the budget contains huge allocations, little is allocated for socioeconomic development.

"Don't approve the budget until it is structured to deal with the country's socioeconomic challenges. The money for workshops, entertainment, travel, fuel, among others, should be re-allocated to education, health, agriculture and roads," he recommended.

"Let us look at 14 million Ugandans who walk barefoot, 15.7 million Ugandans have no jobs, sh1 trillion allocated to the Parish Development Model (PDM) and so on."
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 11:00 AM  

It's Budget Day!

Hello and welcome to New Vision's live text commentary as we build up to the reading of Uganda's 2025/2026 National Budget set for this afternoon (2pm) at Kololo Ceremonial Grounds in the capital Kampala.

All eyes will be on the man carrying the brown briefcase — finance minister Matia Kasaija — as he presents a sh72.376 trillion budget to Parliament during a special parliamentary sitting not far away from Parliament Avenue.

This is the first budget in the implementation of the the National Development Plan IV, which President Yoweri Museveni launched last week during the State of the Nation Address at Kololo.

Nearly half of this budget — sh34 trillion — is expected to be raised through revenue collections, and the rest will be raised through borrowing, non-tax revenue and external budget support.

The total budget for this financial year ending this June was sh72.1 trillion and the target for the Uganda Revenue Authority (URA) was sh31.369 trillion. Today's New Vision print edition reports that so far, the national tax agency has surpassed the half-year budget. Between July and December 2024, the taxman collected sh15.2 trillion, surpassing its sh14.9 trillion target.

As we build up to the afternoon session at Kololo, a reminder that all Vision Group TV and radio channels will broadcast the event live.