Uganda, May 6 -- Government continues to face growing fiscal pressure after spending significantly exceeded revenue collections in the first seven months of the 2025/26 financial year.

The State of the Economy report released by the Bank of Uganda indicates that the economy is grappling with widening budget deficits, rising debt servicing costs, and weaker-than-expected domestic revenue performance at a time when government expenditure continues to expand. The report shows that government spent more than planned, yet it collected less revenue.

During the period, recurrent expenditure such as wages and salaries reached Shs24.13 trillion, exceeding the target by at least Shs300b.

The increase was largely driven by higher grants to local ...