Finance Minister Henry Musasizi today presented the Charter for Fiscal Responsibility (CFR) for FY2026/27–FY2030/31 to the Parliamentary Committee on Budget, chaired by Rwampara County MP Amos Kankunda.
The CFR outlines Government’s fiscal strategy to maintain macroeconomic stability, ensure debt sustainability and create fiscal space for strategic public investments & private-sector-led growth.
This third Charter follows the expiry of the second Charter at the end of FY2025/26 and will guide Government’s fiscal policy and budget decisions over the next five years.
It was developed in consultation with key stakeholders including the Bank of Uganda, Auditor General’s Office, Uganda Bureau of Statistics, Parliamentary Budget Office, Petroleum Authority of Uganda, National Planning Authority, Uganda Revenue Authority and Civil Society Organisations.
A key objective of this CFR is to keep public debt on a sustainable path. Government projects nominal public debt to peak at 55.1% of non-oil GDP in FY2027/28, before gradually declining to 50% by FY2030/31. The debt rule will remain the key fiscal anchor guiding budget decisions and supporting long-term debt sustainability.
The Charter also sets a path to reduce commercial borrowing relative to domestic non-oil revenue from 33.7% in FY2026/27 to 19.3% by FY2030/31, while total interest payments are projected to fall from 32.5% to 20% of domestic non-oil revenue over the same period.
Government further plans to progressively reduce the fiscal deficit, excluding oil revenue, from 6.6% of non-oil GDP in FY2026/27 to 1.5% by FY2030/31. The fiscal objectives are aligned with the NRM Manifesto, NDP IV, the Ten-Fold Growth Strategy and the East African Monetary Union convergence criteria.
Minister of State for Planning Amos Lugoloobi said achieving the fiscal targets will depend significantly on the performance of Government projects, noting that macroeconomic indicators are ultimately influenced by how well public investments perform.
Lugoloobi said project performance has therefore been placed at the forefront during the new fiscal period, with the Ministry reviewing projects in the Integrated Bank of Projects one by one to assess their progress and ensure they deliver the expected economic outcomes.
The Charter also provides for prudent management of petroleum revenues. A maximum of 0.8% of the preceding year’s non-oil GDP outturn in oil revenue will be transferred to the Consolidated Fund for budget operations, while the remainder will be transferred to the Petroleum Revenue Investment Reserve, managed by the Bank of Uganda.
The overarching goal of the Charter is to support socioeconomic transformation of Ugandans while maintaining macroeconomic stability, debt sustainability and prudent management of petroleum resources.
