The government has raised the bar for the Uganda Revenue Authority (URA), tasking it to collect over Shs40 trillion in taxes to bankroll the Shs69.399 trillion national budget for the 2026/27 financial year—leaving the country to plug the remaining gap through borrowing.
Finance State Minister Henry Musasizi said domestic revenue collections are projected to hit Shs40.090 trillion, marking a Shs2.863 trillion jump from the Shs37.227 trillion expected in FY 2025/26.
Government officials argue the ambitious target is achievable, citing stronger economic growth, an expanding tax base, and tighter tax administration.
“This growth will be driven by higher economic activity, improved compliance, reforms in non-tax revenue, and better enforcement,” Musasizi said.
He defended the heavier burden placed on URA, saying domestic revenue mobilisation is central to the government’s Tenfold Growth Strategy, which aims to sharply reduce reliance on debt.
“Over the medium term, domestic revenues will rise significantly through new tax policy measures, stricter administration, elimination of non-productive exemptions, accountability for tax incentives, and increased oil and gas revenues once production begins,” he said.
The optimism is partly backed by URA’s recent performance. In FY 2024/25, the tax body exceeded its Shs31.37 trillion target, collecting Shs31.63 trillion—an overperformance of more than Shs262 billion.
