Debt and Treasury Operations Take Up Nearly Half of Shs22 Trillion Budget Release

What the report says

Uganda’s Ministry of Finance has released Shs21.8 trillion for the second quarter of the 2026/27 financial year, according to Nile Post, with Shs10.75 trillion set aside for debt and treasury operations. That allocation is about 49.3% of the total release, leaving the remainder to cover wages, pensions, services and development spending across government.

The report says the release comes at a time of pressure on public finances, including a weaker shilling, higher borrowing costs, rising inflation and increased oil prices. Bank of Uganda recently raised its benchmark Central Bank Rate to 12%, which the article links to efforts to manage those pressures. Deputy Secretary to the Treasury Patrick Ocailap said the spending plan was based on government work plans, expected domestic revenue, available cash and external financing.

Nile Post noted that the finance ministry did not give a detailed split of the debt-and-treasury figure between principal repayment, interest and other operations. It also reported that accounting officers were told to stay within the limits in a Treasury circular dated October 8, 2026, and to comply with public financial management rules.

Beyond debt service, the release includes funding for salaries, pensions, Parliament, the Judiciary, infrastructure, health, education, local governments and Kampala Capital City Authority. The article said the figures show the challenge of balancing debt obligations with service delivery and investment, particularly when exchange-rate weakness raises the local cost of foreign-currency debt.