URA posts first monthly fiscal surplus, hits target

What the report says

The Independent Uganda, citing URN and Ministry of Finance data, reported that the Uganda Revenue Authority recorded a stronger-than-expected June revenue performance, helping government operations close the month with a fiscal surplus of about Shs517 billion. The outcome reversed an anticipated deficit of roughly Shs691 billion and was described as the first monthly net lending position since December 2025.

According to the report, URA collected Shs5.8 trillion in June, exceeding its target by about Shs800 billion. The surplus was mainly attributed to tax receipts, while non-tax revenue and grants were below projections. URA Commissioner General John Musinguzi Rujoki linked the result to stronger economic activity, improved administration and higher taxpayer compliance toward the end of the financial year.

The article also said the June performance helped make up for weaker collections earlier in the financial year. Denis Kugonza Kateeba, URA’s Commissioner for Domestic Taxes, said election-related disruptions in 2026 had slowed business activity and affected enforcement in the first half, before collections recovered as conditions normalised and measures such as tax amnesties and administrative reforms supported compliance. Gains were reported across income taxes, domestic consumption taxes and import-related collections.

Despite the revenue boost, government spending remained substantial. The Independent reported recurrent expenditure of about Shs3.5 trillion in June, slightly above target, partly linked to salaries, operations and supplementary budgets approved during the year. It also noted concerns from budget transparency advocates, including CSBAG’s Julius Mukunda, over large late-year supplementary appropriations. Development spending, meanwhile, fell below plan, with non-financial asset expenditure at about 80 percent of the monthly target.