Overview:
Speaking during the release, Patrick Ocailap, the Deputy Secretary to the Treasury, urged accounting officers to ensure timely payment of salaries, pensions, and gratuities — not later than the 28th of every month.
The Ministry of Finance, Planning, and Economic Development (MoFPED) has released funds for the second quarter of the 2025/2026 financial year amounting to over UGX 18 trillion, bringing the total amount disbursed so far this year to UGX 38.6 trillion.
This represents 53.4 percent of the national budget, estimated at UGX 72 trillion.
Speaking during the release, Patrick Ocailap, the Deputy Secretary to the Treasury, urged accounting officers to ensure timely payment of salaries, pensions, and gratuities — not later than the 28th of every month.
“Why delay payment when you have the money?” Ocailap asked, emphasizing adherence to the Public Finance Management Act.
He cautioned accounting officers against committing government funds without confirmed financing and warned of penalties for delayed payments for goods and services. Ocailap also advised against recruiting new staff without verifying the availability of wage resources.
On procurement, he reminded institutions that the government has banned payments for services in foreign currency, and called for quarterly finance committee meetings to align spending with approved priorities.
Civil Society Raises Concerns
Representatives from civil society questioned the pace of local government compliance and the handling of salary-related disputes.
Paskal Muhangi of the Civil Society Budget Advocacy Group (CSBAG) noted that by the end of September, only 25 percent of local governments had submitted their development plans, despite all 176 being required to do so by March 2025.
Muhangi also questioned government efforts to end the ongoing teachers’ strike over pay disparities.
In response, Ocailap reiterated that salary enhancements would be catered for in the 2026/2027 budget, urging teachers to return to work.
Jane Nalunga, Executive Director of SEATINI Uganda, expressed concern over the delays, warning that some local governments could be implementing projects without approved development plans. She called for expedited submissions to ensure alignment with the National Development Plan (NDP) IV.
Funding Priorities Under NDP IV
The second-quarter release focuses on key pillars of NDP IV, with major allocations including:
- Agriculture and Agro-industrialisation – UGX 320 billion
- Tourism Development – UGX 53.65 billion for branding, marketing, and sectoral operations
- Science, Technology, and Innovation – UGX 124.25 billion through the Ministry of ICT and NITA-U
- Mineral-based Industrial Development (Oil & Gas) – UGX 16.64 billion under the Petroleum Authority of Uganda
Infrastructure and Human Capital
Infrastructure remains a top spending area, with the Ministry of Works and Transport receiving UGX 1.7 trillion, representing 82 percent of its annual budget. Funds will cover road maintenance and Entebbe International Airport upgrades.
The Ministry of Energy and Mineral Development received UGX 361 billion for rural electrification, power transmission, and generation projects.
Meanwhile, Kampala Capital City Authority (KCCA) was allocated UGX 145 billion for road works and waste management, while the Ministry of Kampala and Metropolitan Affairs received UGX 292 billion.
Under Human Capital Development, the health sector received:
- UGX 471 billion for general health services
- UGX 205.4 billion for National Medical Stores
- UGX 84.85 billion for the Uganda Cancer Institute and Heart Institute
Local governments collectively received UGX 390.78 billion to support project implementation.
Security, Governance, and Revenue Mobilisation
Key allocations under governance and security include:
- Defence: UGX 642.8 billion
- Police: UGX 261 billion
- Prisons: UGX 89.6 billion
- State House: UGX 83.97 billion
- Office of the President: UGX 114 billion
- Internal Security: UGX 34.9 billion
- External Security: UGX 18.56 billion
The Electoral Commission received UGX 52.7 billion, completing its full budget allocation ahead of the upcoming political season.
For revenue generation:
- Uganda Revenue Authority (URA): UGX 114 billion
- Uganda Registration Services Bureau: UGX 8.45 billion
- National Citizenship and Immigration Centre: UGX 61.42 billion
- Lotteries and Gaming Regulatory Board: UGX 3.06 billion
The ministry also released UGX 187 billion toward clearing domestic arrears, pending final verification by the Auditor General.
Conclusion
The Ministry of Finance emphasized that all entities must align expenditure with approved budgets and maintain strict financial discipline.
With over half the annual budget already released, the government says it expects timely implementation of projects and enhanced service delivery across sectors.