Overview:
The agreement sets out clear roles and responsibilities for both institutions in the management of public financial operations. It is aimed at strengthening coordination, transparency, and efficiency in how government funds are handled.
The Permanent Secretary and Secretary to the Treasury (PSST), Ramathan Ggoobi, on Tuesday signed a renewed Service Level Agreement (SLA) with the Governor of the Bank of Uganda (BoU), Michael Atingi-Ego, at the Ministry of Finance, Planning and Economic Development (MoFPED).
The agreement sets out clear roles and responsibilities for both institutions in the management of public financial operations. It is aimed at strengthening coordination, transparency, and efficiency in how government funds are handled.
Key areas covered under the SLA include management of government bank accounts, receipt and disbursement of funds, clearing and settlement of both local and international payments, management of letters of credit for Ministries, Departments and Agencies (MDAs), provision of internet banking services, and settlement of government debt obligations. These functions are central to the effective functioning of government financial systems, particularly in ensuring secure, timely, and accurate public transactions.
This is the first SLA signed between MoFPED and the central bank since the COVID-19 period, during which emergency spending and rapid fiscal decisions exposed the need for more streamlined and responsive systems. The updated SLA takes into account recent changes in financial regulations, advances in technology, and the evolving needs of public service delivery.
PSST Ramathan Ggoobi noted that the new agreement comes at a time when the government is deepening its commitment to digital transformation, fiscal discipline, and enhanced accountability. He emphasized that aligning financial operations with new realities would ultimately improve service delivery and public trust. On his part, BoU Governor Michael Atingi-Ego reaffirmed the central bank’s support for Uganda’s ongoing Public Financial Management (PFM) reforms, stressing that the institution remains committed to ensuring that all government transactions meet the highest national and international standards.
The new SLA is expected to enhance collaboration between the Ministry and the Bank of Uganda, reduce financial risk, improve the timeliness of public payments, and support broader goals of macroeconomic stability, effective budget execution, and sound financial governance.