The Minister of State for Finance (General Duties), Henry Musasizi, has defended the proposed increase in the government’s total resource envelope, saying it is aimed at supporting key priorities for the 2026/27 financial year.
Speaking to journalists at Parliament after a meeting of the NRM Caucus,Musasizi said he will present draft budget estimates next week.
He said the total resource envelope is projected at Shs 84.2 trillion, up from Shs 72.4 trillion in the current financial year, reflecting an increase of about Shs 11.6 trillion.
Of the total, Shs 44.5 trillion is expected to be raised through tax revenue.
Musasizi said the budget will prioritise sectors such as peace and security, roads, railways, electricity, scientific innovation and regional programmes including restocking in Teso, Lango and Acholi.
He added that the allocations also cater for salary enhancements for primary school teachers, arts teachers at secondary level, technical and vocational education staff, and security personnel.
About Shs 1.8 trillion has been earmarked for transport infrastructure, including counterpart funding for the Kampala–Jinja Expressway, the Standard Gauge Railway (SGR) and the rehabilitation of the metre gauge railway.
The minister said funds will also support electricity, roads and water infrastructure in industrial parks.
He said Shs 1.16 trillion has been allocated to address wage shortfalls and salary enhancements for teachers, technical staff and scientists, including those in the Uganda People’s Defence Forces.
In addition, Shs 918 billion will go towards national road maintenance and the rehabilitation of small businesses under the government’s “Emyooga” initiative.
Musasizi reaffirmed the government’s commitment to increase teachers’ salaries by 25 percent in phases, with the goal of achieving a full increment within four years.
On tax policy, he said the government plans to introduce measures across Value Added Tax, stamp duty, Pay As You Earn, excise duty, import duty, export duty and income tax.
He said workers earning less than Shs 300,000 per month will be exempted from Pay As You Earn tax in a move aimed at supporting low-income earners, despite an estimated revenue loss of Shs 96 billion.
He added that higher earners will face increased taxation, with those earning above Shs 10 million falling into the top income bracket.
Musasizi also warned retiring public servants to submit their pension documents on time to avoid delays, noting that the government has provided adequate funding for pensions.
On fuel prices, he attributed recent fluctuations in petrol and diesel costs to global instability, including tensions involving Iran, Israel and the United States.
He said the government has proposed an increase of Shs 200 per litre on fuel under the excise duty framework.
Meanwhile, the government chief whip Hamson Obua said the caucus resolved to support the proposed National Sovereignty Bill.
He said the bill seeks to operationalise constitutional rights, regulate foreign financial inflows and ensure they are used for legitimate purposes.
Obua said the proposed law is consistent with practices in Commonwealth countries and is intended to strengthen national sovereignty.
