Uganda’s Economy Grows 6.4% as Tax Revenue Hits Annual Target

Uganda’s economy grew by 6.4 percent in the 2025/26 fiscal year, up slightly from 6.3 percent the previous year, as the government hit its annual tax revenue targets.

Nominal gross domestic product reached 250.4 trillion Ugandan shillings, equivalent to about $55.4 billion or $69.3 billion, climbing from 227.9 trillion shillings a year earlier, Ecofin Agency reported.

Tax Revenue Reaches 34.05 Trillion Shillings

Finance Minister Henry Musasizi presented the Annual Budget Performance Report and the Macroeconomic and Fiscal Performance Report for the 2025/26 fiscal year to Parliament’s Committee on Budget, chaired by Amos Kankunda.

Government collected 37.99 trillion shillings in total revenue and grants during the period. Tax revenue climbed 14 percent to reach 34.05 trillion shillings, hitting the administration’s annual collection target.

“Government continued implementing strategic interventions aimed at increasing household incomes, promoting enterprise development and accelerating economic transformation,” Musasizi told Parliament, listing the Parish Development Model, Emyooga, and development financing through the Uganda Development Bank among key drivers.

Parish Development Model Disbursements Reach 92 Percent

The 2025/26 period marked the first year of implementing the Fourth National Development Plan and the Tenfold Growth Strategy, which targets a $500 billion economy by 2040.

Disbursements reached 92 percent of the funding allocated to the Parish Development Model, a program designed to help households finance small businesses and other income-generating activities. The economic strategy focuses on agro-industrialization, tourism, mineral-based industrial development, and science and technology.

Loan repayments under the Parish Development Model also increased during the fiscal year. Cumulative recoveries through the Wendi platform reached 5.466 billion shillings as of November 3, 2026, according to the official budget report.