Government has tasked the Uganda Revenue Authority (URA) with collecting over shs 40 trillion to fund the shs69.399 trillion national budget for the 2026/27 financial year, with the remaining funds expected to come from borrowing.
Minister of State for Finance, Henry Musasizi, said domestic revenues are projected to reach shs 40.090 trillion, up from shs 37.227 trillion in FY 2025/26 — a nominal increase of shs 2.863 trillion.
“This rise is attributed to gains on account of higher economic growth, a widening tax base, improved administrative tax revenue collection measures, as well as reforms in non-tax revenue collection,” Musasizi said.
He defended the increase in URA’s collection target, noting that domestic revenues are expected to grow further in line with the Tenfold Growth Strategy.
“Over the medium term, domestic revenues will increase significantly, driven by continued growth, the introduction of new tax policy measures, enhanced tax administration, higher tax compliance, greater accountability for tax holidays, the elimination of non-beneficial exemptions that do not support the industrialisation agenda, and increased revenues from the oil and gas sector as the country begins production,” Musasizi said.
URA has a track record of exceeding targets. In FY 2024/25, the authority set a net revenue target of shs 31.37 trillion but collected shs 31.63 trillion, surpassing its annual target by more than shs 262 billion.
