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| Uganda’s finance ministry |
Uganda’s finance ministry says expenditure amounting to Ush 5.9 trillion (Ksh 206.7B) has been released to cater for its spending in the first quarter of 2024/25 financial year.
The released amount which is equivalent to 21.3pc of discretionary expenditure for this year amounting to Ush 72.1 trillion will go towards paying wages, non-wages, government development priorities and pay arrears.
The East African Community (EAC) member state has allocated Ush 1.99 trillion to cater for wages, Ush 3.4 trillion for non-wages, Ush 337.5 billion for government development and Ush 199.8 billion to clear unpaid arrears.
“Accounting Officers must prioritize payment of service providers on time and clearance of domestic arrears to avoid further accumulation of arrears and penalties. I wish to emphasize this, there should be no creation of arrears,” said Ramadhan Ggoobi, Permanent Secretary of Treasury.
According to Ggoobi, the Q1 exchequer releases for July to September are in line with the government’s fiscal consolidation plans through fiscal and monetary policy.
“All government operations this financial year will underpin fiscal discipline, budget credibility, commitment to service delivery and timely project execution,” he added.
Treasury projects the economy to grow between 6pc and 6.5pc this year before expanding by another 7pc next year supported by increased investment, agro-forestry, tourism, mineral development and ICT.
Additionally, the country inflation rate has remained within target bands, reaching 3.9pc last month.
By Ronald Owili