Uganda will reduce its government spending in the next financial year, cutting the budget by 4.1% to 69.4 trillion shillings ($19.9 billion).
This is part of a plan to lower borrowing and manage interest payments, the Finance Ministry said in a statement released Wednesday.
Domestic borrowing will drop by over 21%, from 11.4 trillion to 9 trillion shillings. Despite the cuts, the government will keep funding major projects — especially the East African Crude Oil Pipeline, which is needed to start oil production. Other funds will go into mineral exploration and ongoing railway development.
This shift signals a balancing act: tightening the budget while pushing ahead with big projects to boost the economy.
