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The Government of Uganda recorded a fiscal deficit of Shs 1,807.72 billion (1.807 trillion) in April 2025, according to the Ministry of Finance’s latest monthly economic performance report. This figure exceeds the projected deficit of Shs 1,213.07 billion (1.213 trillion) for the month, largely due to lower-than-anticipated tax and non-tax revenues, alongside increased expenditure.

A fiscal deficit occurs when government spending surpasses its available financial resources.

In April, the government collected Shs 2,180.09 billion (2.180 trillion) in tax revenue, falling short of the monthly target of Shs 2,279.51 billion (2.279 trillion) by Shs 99.42 billion. All three major tax categories experienced shortfalls to varying extents.

Total government expenditure during the month stood at Shs 4,236.71 billion (4.236 trillion), surpassing the planned figure of Shs 3,782.74 billion (3.782 trillion).

Taxes on international trade were the most affected, missing the target by Shs 53.06 billion. Collections in this category amounted to Shs 863.35 billion compared to the target of Shs 916.42 billion. The shortfall was primarily attributed to lower-than-expected fuel imports, which impacted petroleum duty collections—achieving only 76.8% of the projected figure.

Domestic indirect taxes, commonly referred to as consumption taxes, also fell short. These amounted to Shs 629.86 billion, below the target of Shs 664.86 billion, resulting in a deficit of Shs 35.00 billion. Most of this gap came from Value Added Tax (VAT), which underperformed by Shs 24.71 billion, while excise duty accounted for a shortfall of Shs 10.29 billion.

Several goods—including soft drinks, cooking oil, spirits (waragi), and sugar—recorded lower-than-expected tax collections. Additionally, key sectors such as construction, real estate, trade, and hospitality (including hotels and restaurants) registered lower VAT revenues than projected for the month.