Government allocates UGX 10.75 trillion to debt repayments in Q2 budget release
The Ugandan government has allocated 10.75 trillion UGX for debt repayment in the second quarter of the 2026/2027 budget. This move comes amid rising inflation and the depreciation of the Ugandan shilling, forcing the government to prioritize debt obligations over other services.
Why it matters
High debt servicing costs limit the government's ability to fund essential public services, reflecting broader economic instability in the region.
Uganda’s Ministry of Finance has released Shs21.82 trillion for government expenditure in the second quarter of the 2026/2027 financial year, with nearly half of the money earmarked for debt repayments and refinancing as economic pressures mount.
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