The Ministry of Finance, Planning and Economic Development has released Shs15.99 trillion as government expenditure for the second quarter of the current Financial Year 2024/2025.
The Shs15.99 trillion is for the quarter from October – December 2024, representing 22.2% of the approved budget.
The biggest share of the money (Shs4.599 trillion) has gone to the development requirements, which include what the government calls ATMS. These include agro-industrialisation, infrastructure, mineral development, tourism, human capital development and security.
Speaking at the release in Kampala on Tuesday, Finance Ministry Permanent Secretary and Secretary to the Treasury Ramathan Ggoobi said the Q2 release is in line with the continued effort of fiscal consolidation through coordinated fiscal and monetary policy.
He says there has been continued expansion of Uganda’s economy, affirmed by the recently released Quarterly GDP outturns for the second quarter of the calendar year 2024 (April – June 2024) which showed that the economy expanded by 6.6%.
“The high-frequency indicators of economic activity show improvements in the level of economic activity and positive sentiments by the private sector about doing business in the economy,” said Ggoobi.
He said with Government’s continued investment in the ATMS to grow the economy ten-fold and other strategic interventions, the economy is poised to grow between 6% – 6.5% this financial year, adding that in the subsequent years, economic growth is projected to be higher, driven by interventions being implemented under the ten-fold Growth Strategy.
He said inflation remains subdued, with annual headline inflation declining to 3.0% for the year ended September 2024, while the Uganda shilling has remained relatively stable.
According to the quarterly release, agro-industrialisation has been allocated Shs385.22 billion, tourism development — Shs14.65 billion; mineral-based industrial development including oil and gas — Shs55.78 billion; and Science, Technology and Innovation including ICT — Shs43.93 billion.
Others are; infrastructure, which includes; the Ministry of Works arid Transport — Shs479.07 billion to cater for Standard Gauge Railway, Meter Gauge Railway, subventions and District, Urban and Community Access Roads; Uganda National Roads Authority (UNRA) — Shs392.51 billion; Ministry of Energy and Mineral Development (MEMD) — Shs290.54 billion to cater for rural electrification and transmission lines; and KCCA — Shs193.86 billion (o/w Shs115 billion will be drawn from the Petroleum Fund).
The other is Human Capital Development, which includes; Education — Shs156.49 billion for interventions under Ministry of Education and Sports, UNEB, UBTEB, and Universities; Health — Shs450.91 billion for MoH, UCI, UHI. These funds will support GAVI, Global Fund and outstanding obligations. Regional hospitals including Mulago and Butabika Hospitals were allocated Shs8.15 billion; Social development — Shs 53.28 billion for MoGLSD, EOC, UHRC; and Local governments — Shs400.88 billion.
Shs11.31 billion was allocated to the NTR votes of the Uganda Registration Services Bureau (URSB), National Citizenship and Immigration Control, Uganda National Bureau of Standards, and Law Development Centre (LDC).
The other is security where MoDVA has been allocated Shs463.97 billion; Uganda Police Force — Shs90.84 billion; Uganda Prisons Service — Shs19.3 billion; Shs11.13 billion for Internal Security Organization and External Security Organization; Directorate of Government Analytical Laboratory — Shs18.8 billion for the completion of the DNA bank and pending certificates; and National Identification and Registration Authority — Shs75.77 billion to cater for the advance payment for the National Security Information System.
Shs1.991 trillion is to cater for wages and salaries across government. Shs281.78 billion is for Pension and Gratuity; and Shs145.32 billion to Local Governments;
Shs103.32 billion is to all Public Universities, Uganda Management Institute and Law Development Centre in line with the semester requirements;
Shs37.37 billion is for Examination Boards i.e. Uganda National Examination Board (UNEB) and Uganda Business and Technical Examinations Board (UBTEB)
Ministry of Gender, Labour and Social Development to cater for Social Assistance Grants for Empowerment (SAGE) requirements got Shs48.94 billion.
In addition, Shs299.74 billion has been released to National Medical Stores (NMS) for the purchase of essential drugs and medicines.
