The government has set a domestic revenue target of Shs40 trillion for the 2026/27 financial year placing the Uganda Revenue Authority at the centre of efforts to finance national priorities.
The benchmark outlined in the 2026/27 National Budget Framework Paper reflects government’s push to deepen domestic resource mobilisation as pressure grows to fund public services while limiting borrowing.
Officials say the projected increase will be driven by improvements in tax administration, expansion of the tax base and stronger compliance across key sectors. Higher collections are expected from income tax, value added tax and excise duties as economic activity recovers and more businesses formalise.
The revenue outlook was presented by the Ministry of Finance, Planning and Economic Development which emphasised tighter enforcement, broader use of digital tax system, and closer coordination between URA and other agencies.
To meet the Shs40 trillion mark, authorities plan to intensify action against tax evasion, strengthen data driven audits and expand electronic fiscal devices. Government also plans to scale up taxpayer education to boost voluntary compliance alongside firm action against persistent noncompliance.
If achieved, the revenue is expected to support priority spending in infrastructure, health, education and social protection while reducing reliance on external financing.
URA has acknowledged the scale of the task but says ongoing reforms and institutional strengthening will improve collection efficiency. The authority notes that sustained stakeholder engagement will be critical to delivering the new benchmark.