Uganda government releases Shs4.9 trillion expenditure for 3rd quarter of FY 2023/24

The government of Uganda has released Shs4.974 trillion as expenditure for the third quarter of FY 2023/24.

Mr Ramathan Ggoobi, the Permanent Secretary in the Ministry of Finance, Planning and Economic Development, said the fiscal consolidation agenda guided the determination and issuance of Quarter Three expenditure limits.

“Q3 FY 2023/24 resources align with our commitment. The Parliament-approved supplementary budget reflects strategic priorities.  Stay tuned for insights on navigating macroeconomic challenges and steering Uganda towards sustainable development,” Mr Ggoobi, who is also the Secretary to the Treasury, told journalists on Monday, 29 January 2024.

He also revealed that the cumulative revenue collections for the period July to December amounted to Shs13.301 trillion against a target of Shs 14.169 trillion, implying a revenue shortfall of Shs 867.91 billion.

“The release has, therefore, prioritised salary, pension and gratuity, security related expenditure, social sectors of health and education and critical capital expenditures,” he added.

Mr Ggoobi said the released funding excludes debt, external financing and local revenue.

Of this, Shs 1.912 Trillion or 26.2% of the wage budget has been provided, based on payments made in the first half of the Financial Year.

“I wish to inform all stakeholders that this Ministry has received the Audit report on Wage payroll. Going forward this shall be our basis of providing funds for wage, as a first step in Government’s implementation of the AG’s recommendations,” he said.

Government, Mr Ggoobi added, is committed to fiscal discipline, by focusing on boosting revenue through efficient tax administration, streamlining expenditure for economic growth and prudent control over essential borrowing.

Shs336.3 billion has been provided to kick start the process of ensuring renewal of National IDs project (Shs192b) and for purchase of tablets that will be used in the National Population Census (Shs144.3b).

Shs90.211b has been provided to National Medical Stores to meet the obligations for purchase of essential drugs and medicines, Shs57.955b to referral hospitals, cancer and heart institute.

Shs550.859billion has been released for operations of security institutions i.e., Ministry of Defence (Shs403.082b), Police (Shs71.374b), Prisons (Ushs 41.427 billion) ISO and ESO (Ushs 34.975 billion).

A total of Shs117.b has been allocated to Education Institutions. This includes Shs28.076b for instructional materials, student loan schemes, and examination bodies under the Ministry of Education and Sports.

Public Universities, UMI, and LDC receive Shs84.537b, while UBTEB receives Shs4.594b for exam supervision and management. Shs249.294b has been released for Local Government Grants, including capitation grant of Shs136.5b to ensure timely opening of the first school term. Shs296.578 billion has been released for pension and gratuity for Q3. This includes the requirement for pension and gratuity for Local Governments.

𝐒𝐡𝐬 𝟐𝟑𝟎 𝐛𝐢𝐥𝐥𝐢𝐨𝐧 has been released for statutory votes i.e. Parliament (𝐒𝐡𝐬 𝟏𝟓𝟎.𝟗𝟔𝟐 𝐛𝐢𝐥𝐥𝐢𝐨𝐧), Electoral Commission (𝐒𝐡𝐬 𝟗.𝟒𝟓𝟗 𝐛𝐢𝐥𝐥𝐢𝐨𝐧, Judiciary (𝐒𝐡𝐬 𝟒𝟒.𝟖𝟖 𝐛𝐢𝐥𝐥𝐢𝐨𝐧) among others.

Nevertheless, Mr Ggoobi said Uganda’s economy is rebounding post-external/internal shocks since FY  2019/20.

“As of June 2023, it stood at Shs 184.89 trillion (US$49.5  billion), growing at a solid 5.2% in real terms. Positive signs of recovery,” he said.

“The Business Tendency Index rose to 59.41 in December 2023 from 58.73 in November 2023, indicating a positive outlook. An index above 50 suggests improvement in executives’ optimism about production, order levels, employment, prices, and access to credit,” he added.

The drivers of this expansion were: services growing at 6.2 percent (especially in trade, tourism, education, ICT, and arts and entertainment), agriculture at 4.8 percent (particularly fisheries activities at 8.6 percent, livestock at 8.8 percent, and food crops at 4.7 percent).