Ocailap addressing the press today at the ministry of finance headquarters
HABARI DAILY I Kampala, Uganda I Government, through the Ministry of Finance, Planning and Economic Development has released Shs 18.43 trillion to government institutions for the second quarter of the 2025/26 financial year.
This brings total disbursements to Shs 38.61 trillion or 53.4 percent of the approved national budget, according to Patrick Ocailap, the Acting Permanent Secretary and Secretary to the Treasury (PSST)
Addressing the press on Monday, Ocailap, who is also the Deputy Secretary to the Treasury, he said that the funds are intended to support implementation of the government’s Ten-Fold Growth Strategy.
He said the bulk of the released funds will go towards strengthening the production drivers of agro-industrialization, tourism, minerals, and science and technology.
“Recent GDP figures from the Uganda Bureau of Statistics show that real GDP grew by 6.3 percent in FY2024/25, up from 6.1 percent the previous year, increasing the size of the economy to Shs 227.88 trillion,” he said.
He attributed the growth to “a sustained recovery in aggregate demand, supported by government initiatives such as the Parish Development Model,” coupled with favorable weather and a stable macroeconomic environment.
Ocailap said that Uganda’s economy continues to expand despite the challenging global environment characterised by tighter financial conditions and geopolitical tensions. Key sector allocations for Q2
The ministry released Shs 7.70 trillion for debt and treasury operations, Shs 2.132 trillion for wages and salaries across government, Shs 339 billion for pension and gratuity and Shs 223.64 billion for Parliament, as well as Shs 64.06 billion for the Judiciary.
For the ATMS, Science, Technology & Innovation [STI], Shs 124.25 billion was disbursed to support digital transformation, innovation, and creativity through entities such as NITA and the Ministry of ICT and National Guidance.
When it comes to Agro-Industrialisation, Shs 320 billion was allocated to fund research, operations, and development projects aimed at enhancing agricultural productivity and value addition.
For Tourism Development, government released Shs 53.65 billion was released to the Ministry of Tourism, Wildlife and Antiquities and the Uganda Tourism Board to strengthen destination branding, marketing, and improve hospitality standards.
When it comes to Mineral-Based Industrial Development including oil and gas, Shs 16.64 billion was allocated to the Petroleum Authority of Uganda to support activities in the extractives sector.
When it comes to enablers of ATMS, the Ministry of Defence was given Shs 642.85 billion, the Uganda Police Force, Shs 161.62 billion and Shs 83.97 billion for State House operations.
The Uganda Prisons Service received Shs 89.67 billion, Office of the President Shs 111.13 billion, the Internal Security Organisation (ISO) Shs 34.59 billion, External Security Organisation (ESO), Shs 18.56 billion, the Electoral Commission was given Shs 52.71 billion, completing the full release of the Shs 450 billion budget for the electoral roadmap.
Ocailap reported that Uganda’s economy grew by 6.3 percent in FY 2024/25, up from 6.1 percent the previous year, with nominal GDP expanding to Shs 227.88 trillion, up from Shs 203.71 trillion in FY 2023/24.
“This growth was largely attributed to a sustained recovery in aggregate demand, supported by government initiatives such as the Parish Development Model [PDM].
Looking ahead, the economy is projected to grow by 7 percent in FY 2025/26, with medium-term growth expected to surpass 7 percent.
This, said the ministry of finance, will be driven by ongoing infrastructure investments, recovery in regional and global markets, and a more diversified production base.
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