The Ministry of Finance, Planning and Economic Development has released Shs5.899 trillion for government expenditure in the first quarter of the new financial year (2024/25).
The Shs5.899 trillion represents 21.3% of the discretionary budget and it comprises Shs1.990.28 trillion for wages, Shs3.371.91 trillion for non-wages, Shs337.53 billion for GoU Development, and Shs199.3b for arrears.
Speaking at the release of the funds in Kampala on Tuesday, Finance Permanent Secretary and Secretary to the Treasury Ramathan Ggoobi said Shs 323.50 billion is for Pension and Gratuity, Shs 308.75 billion will to Local Governments, including Education Capitation Grants (Shs. 112.28 billion) to cater for Third Term of the school year; Shs 95.26 billion to all Public Universities, Uganda Management Institute and Law Development Centre in line with the semester requirements.
Ggoobi said Shs43.77 billion for examination bodies i.e. Uganda National Examination Board (UNEB) and Uganda Business and Technical Examinations Board (UBTEB); while all missions abroad have been allocated Shs100.58 billion (representing 50% of their Annual Budget).
The National Council of Sports has been allocated Shs 124.63 billion, which included payment of AFCON commitment fees, equivalent to USD 30 million;
Referral Hospitals have been allocated Shs 22.58 billion; Uganda Cancer Institute – Shs12.31 billion; Uganda Heart Institute – Shs7.06 billion; and Uganda Blood Transfusion Services (UBTS) – Shs 4.1 billion.
A total of Shs 21.85 billion has been allocated for medical interns’ salaries; while Shs 173.68 billion has been released to National Medical Stores (NMS) for the purchase of essential drugs and medicines.
The Ministry of Defense and Veteran Affairs has been given Shs 253.30 billion, Uganda Police Force – Shs 56.43 billion, Uganda Prisons Services – Shs 44.79 billion, ISO – Shs 28.08 billion; and ESO – Shs 19.44 billion.
Parliament has been allocated Shs 153.60 billion, Judiciary – Shs 47.40 billion, Auditor General – Shs 10.11 billion, Science Technology and Innovation – Shs 124.63 billion; and Uganda National Oil Company (UNOC) – Shs 124 billion for Equity acquisition in the East African Crude Oil pipeline (EACOP).
Domestic arrears amounting to Shs 199.83 billion have been catered for, and the International Court of Justice (ICJ) award to DRC of Shs 247 billion is also included.
Contract staff salaries have got Shs 21.76 billion; URA – Shs 14.34 billion; KCCA – Shs 22.67 billion; MoFPED Shs 14.53 billion to cater for Resource Enhancement and Accountability Programme (REAP) and Uganda Intergovernmental Fiscal Transfers Programme (UGI FT); while Local Government grants of Shs 229.27 billion, representing one third of the development grant allocations; have been allocated.
Ggoobi stressed that the release is in line with the government’s continued effort of fiscal consolidation through coordinated fiscal and monetary policy.
He said all Accounting Officers must ensure that they pay salaries, pensions and gratuity by the 28th of every month.
“There should be a display of the payrolls for salaries and monthly pension on Government institutions’ notice boards every month. Accounting Officers must prioritize payment of service providers on time and clearance of domestic arrears to avoid further accumulation of arrears and penalties,” Ggoobi said.
“I wish to emphasize this —there should be no creation of arrears; NO recruitment should be done without clearance from the Ministry of Public Service after ascertaining availability of adequate wage from this Ministry,” he added.
Ggoobi said all Accounting Officers are required to ensure that every promotion and re-deployment of staff made to a different cost center should be backed up by adequate wage provision.
He said all Government operations this financial year will underpin fiscal discipline, budget credibility, commitment to service delivery and timely project execution.
