The Ministry of Finance Planning and Economic Development has released Shs4.676 trillion for the first quarter of the Financial Year 2022/23. This was confirmed by the Permanent Secretary who doubles as the Secretary to the Treasury, Ramathan Ggoobi.
The released funds which exclude debt financing will cater for Wages (Shs.1.6 trillion), pension and gratuity (Shs230 billion), Arrears (Shs662 billion), Security Agencies (Shs721 billion), Judiciary (Shs47.6 billion), Parliament (Shs175 billion) and Health Institutions (Shs160 billion).
Others include; the recurrent expenditure for Local Governments (Shs96 billion), Universities (Sh.98 billion) and Agriculture Institutions (Shs13 billion).
This financial year, parliament approved Shs 48.13 trillion budget. Of that, Shs 6.7 trillion is expected from External Financing in terms of loans and grants. At least Shs 15.17 trillion of the total budget will be used to finance debt.
Currently, the country’s public debt stands at Shs 69.5 trillion (USD 19.54 Billion). Of this, domestic and external debt is Shs 25.4Trillion (USD 7.2 Billion) and Shs 44trillion (USD 12.4 Billion). The public debt is projected to increase by the end of this financial year and the end of the FY 2022/2023.
“Our debt is sustainable. We have been borrowing in a sustainable manner to ensure that we are able to pay our debts without constraining the local markets and causing more challenges to the government’s ability to deliver,” Ggoobi said.
He said the Ministry of Finance will not entertain supplementary budgets this Financial Year, which are not for security or industrial policy purposes, themselves accommodated within the three percent of the appropriated budget as provided for in the law.
“We are fully aligned with Bank of Uganda to ensure that the level of liquidity out there is managed to reduce the rate at which the prices of goods and services has been rising,” he said.
To mitigate the current inflationary trend, Ggoobi said the government is mindful of its aggregate level of spending. “This partly underpins the cash limits that we have issued.”