Uganda to Cut Public Spending, Domestic Borrowing in FY 2026/27

Uganda’s government has announced plans to cut public spending by 4.1% and reduce domestic borrowing by 21.1% in the 2026/27 financial year. The Ministry of Finance says the austerity measures are meant to create space for major infrastructure investments, including the East African Crude Oil Pipeline (EACOP), mineral value chain development, and the long-awaited Standard Gauge Railway.

Officials argue the move will reduce inflationary pressure and ease debt sustainability concerns. However, civil society actors warn that cuts could affect social sectors like health, education, and rural development if not carefully managed.

The plan comes amid growing public concern over rising food prices and high unemployment, forcing government to balance between growth and social safety nets.