Prime
Gov't releases Shs4.8 trillion for first financial quarter
Mr Ramathan Ggoobi, the Permanent Secretary to the Treasury. PHOTO | FILE
What you need to know:
- Mr Ggoobi reiterated the need for strict adherence to the guidelines issued by the finance ministry in the budget execution circular for this financial year.
- Services to be quoted in Uganda shillings, and names of all civil servants not verified during the payroll audit by the Auditor General to be deleted from the payment system by the end of this month.
The government, through the Ministry of Finance, has released Shs4.8 trillion for the first quarter (Q1) of the financial year 2023-2024, representing 16 percent of the discretionary budget in the Shs52.7 trillion approved budget for this financial year.
Mr Ramathan Ggoobi, the Permanent Secretary to the Treasury (PSST), explained that the Q1 expenditure limits and releases for this financial year were derived based on the work plans and procurement plans of government ministries, departments, and agencies (MDAs) in relation to the available resources.
The Shs4.8 trillion release for Q1 includes Shs1.8 trillion for wages (representing 25 percent of the wage budget), Shs170 billion for pension payments for retired civil servants, and Shs147.7 billion to cater for gratuity payments in this quarter.
"The release for wages also includes a 50 percent release for Missions Abroad to hedge them against loss of poundage," Mr Ggoobi said during a press briefing in Kampala on July 19.
"Under the education sector, the capitation grants for schools have been fully provided to cater for term three of the school year," he added.
Other sectors that received substantial allocations in the Q1 release are Uganda Medical Stores (Shs140 billion), Uganda National Roads Authority and Ministry of Works and Transport (Shs50 billion), and Shs111.6 billion for arrears under institutions.
"Out of the Shs111.6 billion for arrears, Shs10.4 billion is for salary arrears, while Shs101.2 billion is for pension and gratuity arrears," Mr Ggoobi said.
Shs91 billion will be shared by Universities in line with the semester requirements as follows: Makerere University (Shs31.2 billion), Kyambogo University (Shs17.4 billion), MUBS (Shs8.6 billion), UMI (Shs3.8 billion), Mbarara University (Shs3.9 billion), and Shs4.1 billion will go to Gulu University, among others.
At least Shs250 million has been allocated to each Local Government for road maintenance.
In a category summary for the Q1 release, Shs1.8 trillion was released for wages, 2.7 trillion for non-wage expenditures, Shs198 billion for government development projects, and Shs111 billion to be spent on arrears.
The PSST emphasized the need to keep expenditures within the available resources to ensure fiscal discipline, controlled borrowing, and macroeconomic stability.
Mr Ggoobi further noted that all accounting officers must ensure that wages, salaries, pensions, and gratuities are paid by the 28th of every month.
"There should be a display of payrolls for salaries and monthly pension on government institutions’ notice boards every month," he added.
While announcing the Q1 release, Mr Ggoobi reiterated the need for strict adherence to the guidelines issued by the finance ministry in the budget execution circular for this financial year.
These include no recruitment for civil servants apart from replacements, all contracts for works, goods, and services to be quoted in Uganda shillings, and names of all civil servants not verified during the payroll audit by the Auditor General to be deleted from the payment system by the end of this month.
