By Africa Links 24
Published on 2024-01-30 06:04:14
The ministry of Finance, Planning, and Economic Development (MOFPED) has directed government statutory bodies to prioritize their expenditures, despite having the freedom to use their money as they wish under the constitution. This directive comes in light of negative public reactions towards the purchase of high-end new vehicles for past speakers of parliament, while other government obligations such as salaries, wages, arrears, and projects remain unfulfilled.
Ramathan Ggoobi, permanent secretary and secretary to the treasury (PSST), emphasized that while the constitution allows such institutions freedom, they will now have to spend according to the priorities of the government. This directive extends to statutory votes, including parliament and judiciary, with an emphasis on prioritizing critical needs and ensuring value for money, particularly with private contractors partnering with the government.
Ggoobi also stressed the need to reduce the demand for supplementary budgets, which has been a cause for public uproar due to the government’s spending amid dwindling resources. He mentioned that he had blocked requests worth Shs 3.5 trillion from various ministries, departments, and agencies to control the surge in supplementary budget requests.
The PSST also justified the need for some expenditures that surfaced in the supplementary budget, such as security and classified expenditures, emphasizing that these could not wait and were not open for debate.
Julius Mukunda, chief executive officer of Civil Society Budget Advocacy Group (CSBAG), challenged the ministry over some items included in the supplementary budget, questioning why expenditures for international meetings and the national census had to be part of emergency funding.
In response, Ggoobi explained that some projects were too big to be covered in the annual budget and required either borrowing or requesting supplementary funds. He also emphasized the government’s commitment to fiscal consolidation through boosting revenue collection, rationalizing government expenditure, and controlling government borrowing.
Overall, the ministry released a total of Shs 4.974 trillion for the third quarter, bringing the total released for the year to Shs 19.921 trillion, with 78.9% of the planned budget spent so far. However, the total expected to be spent, including supplementary budgets, comes to Shs 29 trillion. It’s clear that the government is working to manage debt and expenditure while boosting revenue collection and targeted spending.
