By Nanteza Ruth Walusimbi
NATIONAL
Minister of Finance, Matia Kasaija has assured Ugandans that despite the confusing global economic trends characterized with stiff trade tariffs, decrease in cheap credit, Government will ensure that Uganda’s economy isn’t mortgaged through external borrowing, but instead seek to raise revenue internally.
He made the pronouncement today, Thursday, 28th August, 2025 during a High-Level 9th Economic Growth Forum, held at Kampala Serena Hotel, while addressing key stakeholders on strategic policies and investment initiatives that will enhance Uganda’s economic resilience, accelerate productivity and boost competitiveness in pursuit of the Tenfold Growth, proposals the Ministry argues will inform the national budget priorities and growth strategy for FY 2026/27.
“I believe in value for money and we shall not allow arrears and leakages to cripple economic activity. We will reward those who perform and hold accountable those who do not. That is how we protect the budget, the taxpayer and the wealth creator. With the global financing tightening, Uganda must now look inward and raise our own revenue. That means saving more, widening the tax base fairly and making sure every shilling collected is put to good use.” said Kasaija.
It should be recalled that in order for Government to finance the UGX72.376Trn budget for 2025/26, Government intends to borrow UGX32.075Trillion which is equivalent to 44.3% of the national budget while UGX34.051Trillion will be raised through tax revenue collections by Uganda Revenue Authority, thus accounting for 47% of the total budget requirements.
The Minister’s remarks also come at the time when the Quarterly Debt Statistical Bulletin and Public Debt Portfolio Analysis for March 2025 indicated that Uganda’s total public debt stock increased to US$30.19 Billion (Shs107.294Trn) as at end March 2025 from US$29.06 Billion (Shs103.345Trn) as at end December 2024. Out of this, domestic debt constituted 51.19% (USD 15.45 billion/UGX 56.60 trillion) and external debt 48.80% (USD 14.74 Billion/UGX 53.95 trillion).
Ramathan Ggoobi, Secretary to Treasury also re-echoed the need for Uganda to maintain the discipline of paying it debts and arrears and ensure that all revenue generated from oil production is spent on investment not consumption to avoid the mistakes made by some oil nations.
The Keynote Speaker, Stefan Dercon, a Professor of Economic Policy at the Blavatnik School of Government and the Economics Department at the University of Oxford in the United Kingdom asked the Ugandan Government to ensure that Uganda invests in its oil revenue reasonably and not look at the changes in global geopolitics as an impediment to its goal of the ten-fold economic growth, but rather as an opportunity to diversity its economy and export markets.
