By The government has increased its projected expenditure for the 2026/27 financial year by 12.7 percent, setting the new budget ceiling at Shs78.2 trillion (about $21.78 billion), up from the earlier estimate of Shs69.4 trillion.
The Ministry of Finance announced the adjustment on Friday through its official X platform but did not provide detailed explanations for the higher spending target.
Government has previously indicated that next financial year’s allocations will heavily focus on strategic infrastructure and extractives projects. Key among them is the completion of the East African Crude Oil Pipeline (EACOP) to pave the way for the start of commercial oil production.
Other priority areas include the quantification and development of mineral resources such as iron ore, gold and copper, advancement of plans for a national oil refinery, and continued works on the standard gauge railway.
The revised spending plan signals government’s intention to accelerate large-scale investments aimed at boosting industrialisation and long-term economic growth in the upcoming fiscal year.
