Budget Speech: Uganda's economy set for fastest growth in 30 years as oil production starts

• Musasizi projects Uganda's economy will grow by 10 per cent in FY2026/27.

• Commercial oil production is expected to start later this year.

• Uganda's economy is projected to reach $69.3 billion by June 2026.

• The FY2026/27 national budget stands at Shs84.3 trillion.

Uganda's economy is on course for its fastest growth in more than three decades, with the government projecting double-digit expansion in the 2026/27 financial year as commercial oil production begins.

Presenting the national budget before Parliament on June 11, 2026, Finance Minister Henry Musasizi said the country's economic outlook remains strong, supported by low inflation, rising exports, growing investment and increasing business confidence.

"The economy is stable, growth is accelerating, inflation is low, exports are rising, investment is increasing and confidence in Uganda's future remains strong," Musasizi said.

He said economic growth for the 2025/26 financial year is estimated at 6.4 per cent, up from 6.3 per cent recorded the previous year.

The minister said the size of Uganda's economy is projected to reach approximately $69.3 billion (Shs250.4 trillion) by the end of June 2026, while GDP per capita is expected to rise to $1,420, equivalent to about Shs5.1 million per person.

Musasizi said the start of commercial oil production later this year is expected to accelerate growth to 10 per cent in the 2026/27 financial year.

"This will mark Uganda's first return to double-digit growth since the economic reforms of the 1990s," he said.

He added that faster economic growth would create jobs, raise household incomes and generate more resources for education, healthcare, infrastructure, security and other public services.

The minister delivered the budget for the 2026/27 financial year, which stands at Shs84.3 trillion, making it Uganda's largest spending plan to date. Parliament approved the budget in April. 

According to government figures, domestic revenue will finance the largest share of the budget at Shs44.18 trillion. Other sources include domestic borrowing, external financing, petroleum revenues, grants and local government revenues. 

The 2026/27 budget is aligned to the Fourth National Development Plan and the government's strategy to grow Uganda's economy tenfold over the coming years.