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How govt’s Shs16 trillion for quarter three will be shared

Secretary to the treasury Ramathan Ggoobi addresses journalists on the expenditure releases for FY 2024/25 in Kampala on January 21, 2025. PHOTO/HANDOUT 

What you need to know:

  • The Finance ministry says the Quarter Three expenditure limits for FY2024/2025 were derived from the quarterly workplans and procurements plans of MDAs and taking into consideration the projected resources inflows.


The Ministry of Finance, Planning and Economic Development yesterday released Shs15.64 trillion for public expenditure for quarter three for ministries, departments and agencies (MDAs).

The ministry also clarified that all the money that had been budgeted for the institutions that have since been rationalised has been transferred to host ministries/institutions.

The ministry explained that the current policy development aims at making public service more efficient, and that it is not about budget cuts but rather budget redistributions in sectors which matter most and require more funding. 

Speaking during the release of Quarter Three Budget expenditure for Financial Year (FY)2024/2025, the Permanent Secretary/Secretary to the Treasury, Mr Ramathan Ggoobi, said the Quarter Three expenditure limits for FY2024/2025 were derived from the quarterly workplans and procurements plans of MDAs and taking into consideration the projected resources inflows. 

“This ministry is finalising the full transfer of budget functions for the institutions affected by the rationalisation of government agencies and public expenditure (RAPEX) process. Upon approval by Parliament, the budgets will be transferred to the host institutions. As a result, there should be no gap in service delivery,” he said.

Mr Ggoobi said non-wage recurrent bill is Shs282.28b for pension and gratuity; Shs308.75b to Local Governments. Of this, Shs112.28b is for education capitation grants to cater for the first term of the school year, and Shs36.6b for health institutions under the Local Governments.

Wealth creation funds include Shs529b for Parish Development Model (PDM) and Shs30b for Uganda Development Corporation.

The government released Shs92.75b to all public universities, Uganda Management Institute and Law Development Centre in line with Semester Two requirements.

In the same vein, Shs45.77b goes to the Ministry of Gender, Labour and Social Development to cater for the operational budget, as well as subventions under the ministry, including the Social Assistance Grants for empowerment (SAGE) requirements. 

About the entire economy, Mr Ggoobi said Uganda’s economy grew by 6.7 percent during the first quarter of the FY2024/2025 covering the months of July, August and September 2024/2025 compared to 5.6 percent recorded in the same period of the FY2023/2024.

“This growth has been broad-based mainly driven by food crop production (agriculture); agro processing and construction (industry); and wholesale trade and transport activities (services),” he said.

Mr Ggoobi explained that high frequency indicators of economic activity have continued to show further improvements in the first half of the financial year. The Purchasing Managers Index, which gives an indication of business operating conditions in the economy, was at 53.1; the Composite Index of Economic Activity, that is used to monitor economic trends, at 170.65; while the Business Tendency Index was recorded at 59.65 in December 2024.

Mr Ggoobi said whereas headline inflation increased to 3.3 percent in December 2024, from 2.9 percent in November, driven mainly by increased demand during the festive season, the overall inflation remains subdued and within the policy target of five percent due to close coordination of fiscal and monetary policies.

About the Uganda shilling, Mr Ggoobi said since the start of the financial year, the Uganda shilling has maintained relative stability against the US dollar.

In the external sector, Uganda’s total export earnings in the first quarter of FY2024/2025 amounted to $2.262b. This translates to a growth of 21.8 percent compared to export earnings of $1.857b recorded for Quarter One of 2023/2024.

Mr Ggoobi said this growth was majorly due to coffee exports as both the amount of coffee exported, and international price went up significantly. Additionally, other exports, including minerals products, flowers, simsim, and tobacco contributed to the improvement in the amount of earnings from exports.

Similarly, Uganda’s import bill also grew to $3.161b in Quarter One of FY2024/2025 compared to $2.746b in Quarter One of FY2023/2024. This was on account of the increased value of and volumes of non-oil imports over this period.

Mr Ggoobi said as a result of the higher increase in imports compared to exports (nominally), the trade deficit between Uganda and the rest of the world widened by 1.2 percent from $888.38m in Quarter One of FY2023/2024 to $898.66m in Quarter One of FY2024/2025.

Foreign Direct Investment and Remittances

Mr Ggoobi explained that remittances for Quarter One of FY2024/2025 were $389.06m compared to $360.13m recorded for the same quarter of the previous financial year, implying a growth of eight percent.

“Similarly, Foreign Direct Investment (FDI) registered a growth of 25.4 percent in Quarter One of FY2024/2025 compared to the same quarter of the previous year. Total FDI in Quarter One of FY2024/2025 was $799.46m compared to $637.58m,” he said. 

How released funds have been distributed within institutions

Health institutions’ operation funds have been released as follows  


Amount in billion and millions of shilling

Referral hospital including Mulago and Butabika

                                                        Shs35.9b

Uganda Cancer Institute

                                                      Shs 6.84b

Uganda Heart Institute

                                                      Shs 7.52b

Uganda blood transfusion services

                                                         Shs5.78b

To carter for subvention under Ministry of health

                                                       Shs21.85b

National medical Stores

                                                    Shs110.65b



Operational funds for security institutions


Ministry of defnce and Veteran Affairs

                                                      Shs348.3b

Uganda Police Force

                                                      Shs83.38b

Uganda prison Services

                                                      Shs40.11b

Internal Security organisation  

                                                      Shs28.08b

External Security Organisation

                                                       Shs18.71b

ATMS


Agro-industrialization  (A) for interventions under the Ministry of Agriculture Animal Industry and Fishers  NARO, national Animal Genetic Resources, Center and Data Bank (NAGRC& DB)

                                                      Shs15.73b

National Agricultural Advisory Services, Cotton Development organization Dairy Development Authority Cotton Development Organisation, Uganda Coffee Development Authority, but awaits Parliamentary approval to move funds to MAAIF

                                                             Shs3b



Tourism Development, Ministry of Tourism, Wildlife and Antiquities and Uganda Tourism Board   

                                                      Shs34.05b



Mineral based industrial development including oil and Gas (M) for Uganda National Oil Company

                                                           Shs63b

Petroleum Authority of Uganda

                                                        Shs4.65b

Science, Technology and Innovation including ICT (S) for interventions under Science, technology and Innovation, Ministry of ICT and National Guidance and National Information Technologies Authority   

                                                            Shs85b

Parliament

                                                     Shs166.83b

Judiciary

                                                      Shs58.23b

Auditor General

                                                         Shs16b

Missions Abroad

                                                        Shs115b

Non Ta Revenue entities


National Citizenship


Uganda Registration services Bureau


Uganda Lotteries and Gaming Board


Development budget


Catering for the development requirements that is both government of Uganda and external financing  

                                                      Shs3.314trn

Agro Industrialization

for interventions under the Ministry of Agriculture Animal Industry and Fishers  NARO, national Animal Genetic Resources, Center and Data Bank (NAGRC& DB), National Agricultural Advisory Services, Cotton Development organization Dairy Development Authority Cotton Development Organisation, Uganda Coffee Development Authority, will be transferred after Parliamentary approval

                                                     Shs52.30b

Tourism development for going projects in Ministry of Tourism Wildlife and antiquities for development of source of the Nile project  

                                                       Shs4.66b

Science, Technology and Innovation including ICT (S) for interventions under Science, technology and Innovation, Ministry of ICT and National Guidance and National Information Technologies Authority   

                                                      Shs40.92b



Enablers of the ATMS


Security:  Ministry of defnce and Veteran Affairs

                                                   Shs469.16b

Uganda police force for construction of new apartments blocks in Naguru and Kotido, contractual obligations for intelligence system and classified assets

                                                     Shs78.89b

State House


Uganda Prisons services for seed production, completion of two soli storage facilities and construction of prisoners and staff accommodation   

                                                        Shs3.54b

Directorate of government analytical laboratory for completion of the DNA bank and pending certificates

                                                        Shs3.93b

Infrastructure


Ministry of Works AND Transport

                                                     Shs396.55b

Ministry of Energy and Mineral Development to cater for rural electrification.

                                                     Shs243.34b

Transmission lines, capacity charges for electorMax and mineral development  

                                                         Shs5.5b

Ministry of Kampala Capital City and metropolitan affairs for the implementation of the Greater Kampala Urban development project

                                                   Shs111.58b



Human Capital Development  


Ministry of Education and Sports

                                                    Shs124.45b

Capital development for universities

                                                     Shs15.95b

Ministry of Health

                                                   Shs264.78b

Uganda Cancer Institute and Uganda Heart Institute Shs43.42 billion


Regional referral hospitals

                                                        Shs6.85b

Local Governments

                                                    Shs231.64b