Uganda says it plans to cut external budget support by 84 per cent

Uganda says it plans to cut external budget support by 84 per cent year-on-year from the start of the next financial year in July.

The finance ministry announced late on Wednesday that this assistance, which typically comes in the form of loans and grants, is projected to fall from over $586 million to $92.72 million.

It did not give a reason for the reduction but says the government is keen on "implementing strategies to boost domestic revenue mobilisation".

Uganda’s economy is experiencing a recovery, with revenue projected to rise by 9 per cent in the 2026 to 2027 financial year.

It is hoping to commence crude oil production this year and the International Monetary Fund last year predicted revenues from sales could lift the economic growth rate into double digits.

The government also plans to cut its domestic debt issuance next financial year by 21.1 per cent from the previous period to help trim its ballooning public debt.