Government releases shs15.64 trillion for 3rd quarter of FY 2024/25

KAMPALA, UGANDA | THE INDEPENDENT | The Ministry of Finance, Planning, and Economic Development has announced the release of UGX 15.64 trillion for the third quarter of the Financial Year 2024/25. This funding, covering the period from January to March 2025, represents 21.68 percent of the approved annual budget and aims to support critical government priorities, including wages, pensions, gratuities, development projects, and other recurring expenditures.

According to the release document, UGX 2.044 trillion has been allocated for wages and salaries across all government institutions, while UGX 128 billion has been designated for pensions and gratuities to ensure timely payments to retirees. Ramathan Ggoobi, the Permanent Secretary and Secretary to the Treasury (PSST) stated, “The Ministry is committed to meeting its financial obligations, and Accounting Officers are hereby directed to ensure that salaries, pensions, and gratuities are paid by the 28th of every month.”

Local governments have received UGX 200.75 billion to support various initiatives, including UGX 56.28 billion for education capitation grants for the first term of the school year and UGX 36.6 billion for health institutions, Goobi added. The government has prioritized wealth creation through key funds, allocating UGX 100 billion for the Parish Development Model (PDM), UGX 30 billion to the Uganda Development Bank, and UGX 31 billion to the Uganda Development Corporation.

“These funds aim to bolster economic growth, support small-scale enterprises, and enhance industrialization.”   Operational funding for public universities and institutions, such as the Uganda Management Institute and the Law Development Centre, totals UGX 92.75 billion. Additionally, the Social Assistance Grants for Empowerment (SAGE) program under the Ministry of Gender, Labour, and Social Development received UGX 45.77 billion to support vulnerable groups across the country.

The health sector remains a priority, with UGX 75.65 billion allocated to the National Medical Stores (NMS) for purchasing essential drugs and medical supplies, bringing the cumulative release to NMS to 85 percent of its approved budget. Additional funds have been allocated for specialized institutions, including UGX 35.9 billion for referral hospitals, UGX 6.84 billion for the Uganda Cancer Institute, UGX 7.52 billion for the Uganda Heart Institute, and UGX 5.78 billion for Uganda Blood Transfusion Services.

In the security docket, funding has been provided to maintain stability and improve infrastructure: UGX 41.3 billion for the Ministry of Defence and Veteran Affairs, UGX 83.38 billion for the Uganda Police Force, and UGX 40.11 billion for the Uganda Prisons Services. On the infrastructure front, the Ministry of Works and Transport has received UGX 150.55 billion to advance key projects, including the Standard Gauge Railway, Meter Gauge Railway, Kabalega International Airport, and Bukasa Port.

Additionally, UGX 68.34 billion has been allocated to the Ministry of Energy and Mineral Development to support rural electrification and mineral development.   The development budget for the quarter stands at UGX 3.314 trillion, targeting agro-industrialization, tourism development, and science, technology, and innovation.

Specific allocations include UGX 52.3 billion for agricultural initiatives under the Ministry of Agriculture, Animal Industry, and Fisheries; UGX 4.66 billion for the Source of the Nile tourism project; and UGX 40.92 billion for ICT and innovation projects.   Other significant allocations encompass UGX 112.71 billion for health projects, UGX 53.45 billion for education expansion endeavors, and UGX 67.64 billion for upgrading health and education infrastructure in local governments.

The PSST also emphasized the government’s commitment to fiscal discipline and efficiency, prioritizing timely payments by accounting officers, avoiding commitments of funds beyond allocated budgets, and ensuring all financial decisions align with approved work plans.

“The Q3 release aligns with our efforts to reallocate resources from old priorities to key growth drivers. Our focus remains on promoting technical efficiency and ensuring service delivery at the lowest cost,” said Ggoobi. To enhance transparency, Ggoobi encouraged citizens and stakeholders to access detailed budget information through the Ministry’s website and the Budget Call Centre.

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