Finance releases Shs16 trillion Uganda Government expenditure for 2nd quarter

Uganda’s Ministry of Finance, Planning and Economic Development has released Shs15.99 trillion as government expenditure for the second quarter of the current Financial Year 2024/2025.

The Shs15.99 trillion is for the quarter from October – December 2024, representing 22.2% of the approved budget.

The biggest chunk of the money (Shs4.599 trillion) has gone to the development requirements, which include what the government calls ATMS. These include agro-industrialisation, infrastructure, mineral development, tourism, human capital development and security.

Speaking at the release in Kampala on Tuesday, Finance Ministry Permanent Secretary and Secretary to the Treasury Ramathan Ggoobi said the Q2 release is in line with the continued effort of fiscal consolidation through coordinated fiscal and monetary policy.

He says there has been continued expansion of Uganda’s economy, affirmed by the recently released Quarterly GDP outturns for the second quarter of the calendar year 2024 (April – June 2024) which showed that the economy expanded by 6.6%.

“The high-frequency indicators of economic activity show improvements in the level of economic activity and positive sentiments by the private sector about doing business in the economy,” said Ggoobi.

He said with Government’s continued investment in the ATMS to grow the economy ten-fold and other strategic interventions, the economy is poised to grow between 6% – 6.5% this financial year, adding that in the subsequent years, economic growth is projected to be higher, driven by interventions being implemented under the ten-fold Growth Strategy.

He said inflation remains subdued, with annual headline inflation declining to 3.0% for the year ended September 2024,while the Uganda shilling has remained relatively stable.

QUARTERLY RELEASE BREAKDOWN

According to the quarterly release, agro-industrialisation has been allocated Shs385.22 billion, tourism development — Shs 14.65 billion; mineral-based industrial development including oil and gas — Shs 55.78 billion; and Science, Technology and Innovation including ICT — Shs 43.93 billion.

Others are; infrastructure, which includes; the Ministry of Works arid Transport — Shs 479.07 billion to cater for Standard Gauge Railway, Meter Gauge Railway, subventions and District, Urban and Community Access Roads; Uganda National Roads Authority (UNRA) — Shs 392.51 billion; Ministry of Energy and Minera1 Development (MEMD) — Shs 290.54 billion to cater for Rural electrification and transmission lines; and KCCA — Shs 193.86 billion (o/w Shs 115 billion will be drawn from the Petroleum Fund);

The other is Human Capital Development, which includes; Education — Shs 156.49 billion for interventions under Ministry of Education and Sports, UNEB, UBTEB, and Universities; Health — Shs 450.91 billion for MoH, UCI, UHI. These funds will support GAVI, Global Fund and outstanding obligations. Regional hospitals including Mulago and Butabika Hospitals were allocated Shs 8.15 billion; Social development — 8hs 53.28 billion for MoGLSD, EOC, UHRC; and Local governments — Shs 400.88 billion.

Shs 11.31 billion was allocated to the NTR votes of the Uganda Registration Services Bureau (URSB), National Citizenship and Immigration Control, Uganda National Bureau of Standards, and Law Development Centre (LDC).

The other is security where MoDVA has been allocated  Shs463.97 billion; Uganda Police Force — Shs 90.84 billion; Uganda Prisons Service — Shs 19.3 billion; Shs 11.13 billion for Internal Security Organization and External Security Organization; Directorate of Government Analytical Laboratory — Shs 18.8 billion for the completion of the DNA bank and pending certificates; and National Identification and Registration Authority — Shs 75.77 billion to cater for the advance payment for the National Security Information System.

Shs 1.991 trillion is to cater for wages and salaries across Government; Shs 281.78 billion is for Pension and Gratuity; and Shs 145.32 billion to Local Governments;

Shs 103.32 billion is to all Public Universities, Uganda Management Institute and Law Development Centre in line with the semester requirements;

Shs 37.37 billion is for Examination Boards i.e. Uganda National Examination Board (UNEB) and Uganda Business and Technical Examinations Board (UBTEB);

Ministry of Gender, Labour and Social Development to cater for Social Assistance Grants for Empowerment (SAGE) requirements — Shs 48.94 billion;

Health institutions’ operational funds have been released for:

1. Referral Hospitals including Mulago and Butabika Hospitals — Shs 36.97b
   1. Uganda Cancer Institute (UCI) — Shs 19.93 billion;
   1. Uganda Heart Institute (UHI) — Shs 7.1 billion;
   1. Uganda Blood Transfusion Services (UBTS) – She 4.14 billion;
   1. Subventions under Ministry of Health (MoH) — 8hs 21.85 billion for medical interns’ salaries;

f.       In addition, Shs299.74 billion has been released to National Medical Stores (NMS) for the purchase of essential drugs and medicines.

Operational funds for Security institutions

a.       Ministry of Defense and Veteran Affairs (MoDVA) — Shs

307.26 billion;

b.      Uganda Police Force — Shs 64.56 billion;

c.       Uganda Prisons Services — Shs 56.50 billion;

d.      Internal Security Organisation — Shs 28.08 billion; and,

e.       External Security Organisation — 8hs 23.41 billion.

Parliament — Shs 251.52 billion; Judiciary — Shs73 billion; Auditor General — Shs 13.48 billion; Science Technology and Innovation — 8hs 60.26 billion.

Revenue generating     entities       i.e.     National     Citizenship and Immigration Control — 8hs 67.07 billion; Uganda Registration Services Bureau — Shs 13.26 billion; National Lotteries and Gaming   Board         —      Shs    2.39  billion;          National              Environment Management  Authority   — Shs 12.34          billion;       and,  Uganda National Bureau of Standards — Shs 11.75 billion.

Statutory releases

i.        Contract staff salaries — Shs 20.81 billion;

ii.       Judiciary (Courts of Judicature) — Shs 22.20 billion;

iii.      Electoral Commission (EC) — Shs 18 billion;

iv.      Parliamentary Commission — Shs 22 billion;

v.       National Planning Authority — Shs 4.31 billion;

vi.      Directorate of Public Prosecution — Shs 5.OO billion.

Others

i.        Ministry of Justice and Constitutional Affairs — She 24.10 billion for the completion of JLOS House;

ii.       Inspectorate of Government — Shs 19.06 billion for the completion of IG Headquarters;

iii.      Ministry of Foreign Affairs — She 3.04 billion as requirement for security equipment and to repair the lifts;

iv.      All Missions — She 29.94 billion;

v.       Office of the Prime Minister — Shs 14.fi3 billion.