Uganda to Cut 2027/28 Spending by 6.2% as It Scales Back Borrowing
Uganda plans to spend 79.2 trillion shillings in 2027/28, down 6.2%, as it reduces reliance on borrowing and external financing.
Uganda intends to reduce public spending by 6.2% in the 2027/28 financial year, the finance ministry said, as the East African country moves to scale back borrowing.
The ministry said the government plans to spend 79.2 trillion Ugandan shillings ($20.1 billion) in the twelve months beginning next July, compared with 84.4 trillion shillings in the current period. The statement was posted on X.
The lower outlay reflects "reduced reliance on borrowing and external financing, and allocative efficiency", the ministry said. It did not provide details of how much borrowing would be trimmed.
Uganda has been working to bring down its growing public debt and the cost of servicing it. The central bank has said repayment obligations are eating into resources needed for health and education.
Economic growth for 2027/28 is projected at 9.1%, up from a revised forecast of 7.6% in the preceding period. The ministry attributed the acceleration to the start of commercial oil and gas production.
Uganda hopes to begin oil exports early next year from fields in its west, operated by France's TotalEnergies, China's CNOOC and the state-owned Uganda National Oil Company (UNOC).
In 2027/28, resources will be directed towards priority areas including agro-industrialisation, tourism and mineral development, which covers oil and gas, the ministry said.