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 |