Uganda’s economy continues to expand, says acting PSST Ocailap

15 October 2025, 10:42 am

By Ronald Ssemagonja

The Acting Permanent Secretary and Secretary to the Treasury (PSST) in the Ministry of Finance, Planning and Economic Development, Patrick Ocailap, has confirmed that Uganda’s economy is on a steady growth trajectory.

While addressing the media on the second-quarter expenditure releases for the Financial Year 2025/2026 at the Ministry’s headquarters in Kampala, Ocailap stated that despite global economic challenges, the country’s economy continues to expand. The event was also attended by representatives from the private sector, including SEATINI Uganda, who raised concerns about the nation’s rising debt levels.

“The economy continues to expand despite the challenges posed by global environmental conditions and geopolitical tensions that have disrupted supply chains in recent years. GDP growth is projected at 7 percent in FY2025/26 and above 7 percent in the medium term,” Ocailap said.

According to Ocailap, out of the Shs 72.38 trillion approved for the 2025/26 financial year, Shs 20.18 trillion was released in Quarter 1 and Shs 18.43 trillion in Quarter 2, bringing the cumulative release to Shs 36.1 trillion, representing 53.4 percent of the approved budget.

Key sector allocations include:

• Parish Development Model (PDM): Shs 554 billion
• Ministry of Health: Shs 471 billion
• Ministry of Education and Sports: Shs 172.21 billion
• Public Universities: Shs 144.62 billion
• National Medical Stores: Shs 205.61 billion
• Uganda Cancer Institute and Heart Institute: Shs 84.85 billion
• National Council of Sports: Shs 236.77 billion
• Kampala Capital City Authority (KCCA): Shs 145.68 billion — of which Shs 74.92 billion is from the government and Shs 70.77 billion is external funding for city development projects such as roads and drainage.

Ocailap reminded accounting officers to adhere to government financial management guidelines, including paying salaries, pensions, and gratuities by the 28th of every month as per the approved scales. He also emphasised the timely payment of service providers to prevent domestic arrears, cautioned against committing government funds without budgetary provision, and directed that all contracts and payments be made in Uganda shillings.

Additionally, he instructed accounting officers not to recruit staff without clearance from the Ministry of Public Service and to convene Finance Committee meetings to set priorities in line with approved budgets and available resources.