Ramathan Ggoobi, the Permanent Secretary of the Ministry of Finance, Planning and Economic Development and Secretary to the Treasury emphasized the importance of fiscal discipline and proper wage management as he announced the Shs 5.899 trillion first quarter expenditure releases for the financial year 2024/25. “No recruitment should be done without clearance from the Ministry of Public Service after ascertaining the availability of adequate wage from this Ministry,” Ggoobi stated on Tuesday. He highlighted that accounting officers must ensure every promotion and re-deployment of staff is supported by adequate wage provisions. “All Government operations this financial year will underpin fiscal discipline, budget credibility, commitment to service delivery, and timely project execution,” he added.
The first quarter release, covering July to September 2024, represents 21.3% of the discretionary budget and provides a detailed view of the distribution of funds across various sectors. The biggest beneficiaries were wages and salaries, which received a substantial allocation of Shs 1.990 trillion. This amount includes Shs 323.50 billion for pension and gratuity, Shs 308.75 billion for local governments—of which Shs 112.28 billion is designated for education capitation grants for the third term of the school year—and Shs 95.26 billion for public universities, the Uganda Management Institute, and the Law Development Centre to meet semester requirements.
The significant allocations toward wages, public investments, and security institutions highlight the government’s priorities in maintaining stability and advancing infrastructure projects. However, the comparatively lower allocations to specific health institutions and smaller agencies indicate potential areas of concern, particularly in critical service delivery sectors.
The focus on local government grants and the National Medical Stores underscores a commitment to improving public health and local governance. Meanwhile, the substantial funds directed toward the Uganda National Oil Company (UNOC), including Shs 124 billion for equity acquisition in the East African Crude Oil Pipeline, emphasize the strategic importance of the oil sector in Uganda’s economic future.
Ggoobi reiterated the necessity for accounting officers to ensure timely payment of salaries, pensions, and gratuities by the 28th of every month. He also stressed the importance of displaying payrolls for salaries and monthly pensions on government institutions’ notice boards each month. Additionally, accounting officers must prioritize the timely payment of service providers and clearance of domestic arrears to prevent further accumulation and penalties. “I wish to emphasize this—there should be no creation of arrears,” he said.
In summary, the first quarter budget release reflects the Ugandan government’s strategic allocation of resources to key sectors while highlighting areas that require careful management to ensure effective service delivery and fiscal responsibility.