"We are projecting a growth rate of 4.3% ... based on the assumption that the negative consequences of the pandemic will subside with COVID-19 vaccinations," Finance Minister Matia Kasaija said in a statement.
Growth would also be powered by "accelerated returns from public infrastructure investments" in the oil and gas sector, he added.
Last month Uganda signed agreements with neighbouring Tanzania and international oil firms Total and CNOOC that will jump-start investments worth an estimated $15 billion.
That includes a pipeline through Tanzania to the Indian Ocean coast that will help Uganda export its crude, oilfield development and a refinery.
Uganda's oil fields were discovered in 2006 and are located in the Albertine rift basin near the border with Democratic Republic of Congo.
Kasaija said public debt was forecast to rise to 51.9% of GDP in the financial year starting July compared with 49.1% in the current year.
The surge in debt, he said, would be fuelled by "borrowing to finance key infrastructure projects, especially in the transport and oil & gas sectors".
Uganda's ballooning public debt has triggered concern from the political opposition, the central bank and even the finance ministry, which says it is worried repayments are consuming an increasingly disproportionate chunk of public resources.
Total public debt currently stands at about $18 billion, two thirds of which is held by external creditors.
Last month Uganda said it may approach its major creditors including China and the World Bank to negotiate a possible suspension of loan repayments amid a growing default risk.
(Reporting by Elias Biryabarema; Editing by Giles Elgood)
