Uganda Government warns accounting officers over budget indiscipline

The government has released Shs23.03 trillion to finance expenditure in the first quarter of the 2026/27 financial year, warning accounting officers against spending outside approved budgets as it moves to tighten fiscal discipline.

The release, announced by the Ministry of Finance, Planning and Economic Development on Monday, represents 27 percent of the approved national budget and is based on implementation schedules, projected domestic revenue collections and expected external financing.

Permanent Secretary and Secretary to the Treasury Ramathan Ggoobi said the era of committing government to expenditure without budgetary provision was over, warning that accounting officers who breach the rules would face severe sanctions under the Budget Discipline and Accountability Charter.

“Any entity that commits government without a budget will be harshly handled,” Mr Ggoobi said.

He said the reforms are intended to restore credibility in public budgeting, improve payroll management, eliminate the accumulation of domestic arrears and ensure supplementary budgets are sought only for genuine emergencies.

Mr Ggoobi reiterated five mandatory rules that accounting officers must observe: no budget, no commitment; supplementary budgets are exceptional; zero tolerance for domestic arrears; no ready project, no budget; and no wage provision, no recruitment.

The Treasury also announced that counterpart funding for externally financed projects will now be managed centrally to safeguard financing for priority government programmes.

Other reforms include the rollout of a contributory public service pension scheme aimed at reducing the government’s long-term pension liabilities, as well as the elimination of state-funded public holiday celebrations as part of expenditure rationalisation measures.

Of the funds released for the first quarter, Shs10.83 trillion, more than half of the allocation, will finance debt servicing and Treasury operations, underscoring the growing burden of public debt on government finances.

Another Shs2.45 trillion has been allocated to salaries and wages across government institutions.

The Ministry of Works and Transport received the largest infrastructure allocation of Shs1.53 trillion, including funding for Uganda Airlines, Uganda Railways Corporation, Kalangala Infrastructure Services and the Standard Gauge Railway project.

Funding was also released for priority sectors under the government’s agro-industrialisation, tourism, minerals, including oil and gas, and science, technology and innovation agenda, as well as security, local governments, human capital development and domestic revenue mobilisation.

However, civil society organisations questioned whether the latest reforms would be effectively implemented.

Civil Society Budget Advocacy Group Executive Director Julius Mukunda said government should publish clear implementation plans and timelines for each reform to ensure they deliver tangible results.

“Budget reforms must go beyond announcements to clear implementation plans. Unless reforms are backed by regular public reporting, they risk becoming unfulfilled promises,” he said.

Arthur Bainomugisha, the Executive Director of the Advocates Coalition for Development and Environment (ACODE), urged government to strengthen the capacity of local governments to absorb allocated funds, saying unspent resources should not continue being returned to the Consolidated Fund.

He also expressed concern over the growing domestic debt burden, arguing that delayed payments to suppliers continue to constrain private sector growth and reduce business liquidity.