In Uganda, the Ministry of Finance has announced substantial expenditure releases totaling Ush 5.9 trillion (approximately Ksh 206.7 billion) for the first quarter of the 2024/25 financial year. This amount represents 21.3% of the total discretionary expenditure budgeted for the year, which amounts to Ush 72.1 trillion. The released funds are earmarked to cover various government expenditures, including wages, non-wage expenses, key development priorities, and clearing unpaid arrears.
Specifically, Ush 1.99 trillion has been allocated for wages, highlighting the government’s commitment to its workforce. Non-wage expenditures are set at Ush 3.4 trillion, while Ush 337.5 billion is designated for crucial government development initiatives. An additional Ush 199.8 billion will be used to settle outstanding arrears, underscoring efforts to maintain financial discipline and avoid the accumulation of further debts and penalties.
Ramadhan Ggoobi, the Permanent Secretary of Treasury, emphasized the importance of timely payments to service providers and the clearance of domestic arrears to prevent financial backlog. He reiterated the government’s stance on fiscal consolidation through both fiscal and monetary policies, aimed at ensuring budget credibility, enhancing service delivery, and promoting the timely execution of development projects throughout the fiscal year.
Looking ahead, Uganda’s Treasury projects economic growth ranging between 6% and 6.5% for the current financial year, with expectations of a further expansion to 7% in the subsequent year. This optimistic outlook is bolstered by increased investments across various sectors such as agro-forestry, tourism, mineral development, and information and communication technology (ICT).
Furthermore, Uganda’s inflation rate remains stable within target bands, registering at 3.9% last month. This controlled inflation rate indicates a favorable economic environment conducive to sustainable growth and development initiatives outlined in the government’s fiscal plans.
The release of these funds and the strategic allocation across priority areas underscore Uganda’s commitment to economic stability, growth, and effective financial management amid both domestic challenges and global economic uncertainties. As the fiscal year progresses, stakeholders will monitor closely the implementation of these expenditures to ensure alignment with national development objectives and continued economic resilience.
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