The Ministry of Finance, Planning and Economic Development has issued revised guidelines for the issuance of Certificates of Financial Implications (CFIs), aimed at streamlining the budgeting process and strengthening accountability in the formulation of government policy and legislation.
The guidelines, published in June 2025, replace the 2015 version and introduce a more rigorous framework to assess the financial, socio-economic, and equity implications of legislative and policy proposals. The move follows persistent complaints of delays, weak impact assessments, and lack of clarity around institutional responsibilities in the previous process.
“The revised guidelines are designed to ensure timely, accurate, and comprehensive evaluations of the cost and benefits of public interventions,” said Mr. Ramathan Ggoobi, Permanent Secretary and Secretary to the Treasury, in a foreword to the document.
He added, “They also provide the foundation for automating this critical government function.”
Under Uganda’s Public Finance Management Act and the Rules of Parliament, every new Bill whether government or private member, must be accompanied by a Certificate of Financial Implication. Similarly, Letters of Financial Clearance are required for Cabinet memoranda on matters such as new policy proposals, loan agreements, statutory appointments, and ratification of treaties.
Among the major changes is the introduction of an institutionalised three-tier review system:
Regulatory Fiscal Assessment Committees (FACs) at the Ministries, Departments and Agencies (MDA) level must first approve proposals.
A second review is done by Programme Working Group (PWG) FACs.
Final scrutiny is undertaken by an Apex FAC at the Ministry of Finance before a certificate or clearance letter is issued.
The guidelines also require Ministries, Departments and Agencies (MDAs) to submit a Statement of Financial Implications (SFI) at least 60 days before seeking Cabinet or parliamentary approval. The SFI must include detailed estimates of budget impacts, economic and distributional analysis, stakeholder consultations, and risk assessments.
To further enhance accountability, the guidelines prescribe the use of Discounted Cash Flow models, Economic Net Present Value (ENPV) calculations, and distributional assessments—especially for vulnerable populations such as women, children, PWDs, and small businesses.
The Ministry also signaled plans to automate the CFI process, introducing tracking mechanisms and databases to monitor submissions, reduce paperwork, and improve transparency.
“These guidelines not only align with international best practices, but they are also grounded in the legal and policy frameworks of Uganda, including Vision 2040 and the National Development Plan,” the document states.
MDAs will now be held to stricter standards when proposing new legislation or reforms. Proposals lacking solid financial backing or thorough impact assessments risk rejection or conditional approval.
Additionally, private members proposing legislation must now collaborate with responsible MDAs to ensure the submission of a compliant financial impact statement.
With Uganda’s fiscal space under pressure and increasing scrutiny on public spending, the Finance Ministry’s move is expected to inject much-needed discipline and foresight into policy planning. The revised CFI guidelines serve as both a gatekeeper and a compass—ensuring public resources are used prudently and policies are aligned with national priorities.
