Government has reduced the 2025/26 National budget to UGX57.441Trn, a drop from the current UGX72Trn, and revealed that in the coming financial year, there will be no new taxes introduced but rather, there will be a revision of the current tax laws.
The revelation was made by the Minister of State for Finance Planning and Economic Development, Henry Musasizi, while tabling the 2025/26 National Budget Framework Paper, where he also revealed that Uganda’s economy has fully recovered from the effects of the COVID-19 pandemic, that battered businesses.
“Our preliminary resource envelop is UGX57.441Trn, and we shall raise this money through domestic and external sources and I wish to also inform the House that in the next Financial Year, we don’t intend to introduce new taxes. We shall only do the Bills to clean up, but there shall not be any new tax introduced next financial year,” said Musasizi.
Musasizi added, “Uganda’s economy has fully recovered and is on the right growth path driven by investments in the tenfold economic growth areas. Currently, there is high optimism business and investment optimism in Uganda, with inflation contained at 2.9%, way below the policy target of 5%.”
According to the Minister, the 2025/26 budget will continue to prioritize the flowing economic fundamentals; Peace and Security, Roads, railway and electricity, Irrigation, Reducing cost of capital, Human Capital development in health and education as well as water, international relations and disaster management.
