Finance releases Shs 18 trillion for second quarter spending

The ministry of Finance, Planning and Economic Development has released Shs 18 trillion for the second quarter of the 2025/2026 financial year, bringing the total funds released so far to Shs 38.6 trillion, representing 53.4 per cent of the approved Shs 72 trillion national budget.

Speaking during the release in Kampala, Patrick Ocailap, the deputy secretary to the treasury, urged accounting officers to ensure the timely payment of salaries, pensions, and gratuities by the 28th of every month, noting that delayed payments were unacceptable when funds are available.

“Why delay payment when you have the money?” Ocailap questioned, warning against committing government resources without verifying funding availability.

He cautioned that accounting officers who delay payments for goods and services or recruit new staff without confirming budget provisions would be penalised. He further reminded them that government had banned procurement and payment for services in foreign currencies, urging strict compliance with the Public Finance Management Act.

The Civil Society Budget Advocacy Group (CSBAG) questioned why most local governments had not yet submitted their development plans. Paskal Muhangi, representing CSBAG, said only 25 per cent of the 176 districts had complied by the end of September, despite the March 2025 deadline.

He also queried the government’s plan to resolve the ongoing teachers’ strike over salary enhancement. In response, Ocailap reiterated that salary adjustments would be included in the 2026/27 budget, urging teachers to return to class.

Jane Nalunga, executive director of SEATINI Uganda, expressed concern that some local governments were operating without approved development plans, warning that this could derail implementation of the National Development Plan IV (NDP IV).

Sector Allocations The release prioritised key pillars of NDP IV, including agriculture, tourism, infrastructure, energy, and human capital development.

Agriculture and Agro-industrialisation – Shs 320 billion
Tourism, Wildlife and Antiquities – Shs 53.65 billion for marketing and branding activities
Science, Technology and Innovation – Shs 124.25 billion through the Ministry of ICT and NITA-U
Mineral-based industrial development (Oil & Gas) – Shs 16.64 billion under the Petroleum Authority of Uganda
Defence – Shs 642.8 billion
Police – Shs 261 billion
Prisons – Shs 89.6 billion
State House – Shs 83.97 billion Office of the President and Internal Security – Shs 114 billion and Shs 34.9 billion, respectively
External Security Organisation (ESO) – Shs 18.56 billion
Electoral Commission (EC) – Shs 52.7 billion, completing its annual allocation amid heightened political activity
Infrastructure (Works and Transport) – Shs 1.7 trillion (82% of the sector’s annual budget), covering road maintenance and Entebbe Airport works
Energy and Mineral Development – Shs 361 billion, including rural electrification and power transmission
Kampala Capital City Authority (KCCA) – Shs 145 billion for roads and waste management
Ministry for Kampala and Metropolitan Affairs – Shs 292 billion
Health – Shs 471 billion
National Medical Stores – Shs 205.4 billion
Cancer and Heart Institutes – Shs 84.85 billion
Local Governments – Shs 390.78 billion
Domestic Arrears Clearance – Shs 187 billion, pending verification by the Auditor General
Uganda Revenue Authority (URA) – Shs 114 billion
Uganda Registration Services Bureau (URSB) – Shs 8.45 billion
National Citizenship and Immigration Centre – Shs 61.42 billion
Lotteries and Gaming Regulatory Board – Shs 3.06 billion

Ocailap urged all entities to convene finance committee meetings to set priorities aligned with quarterly allocations, emphasizing efficiency, transparency, and timely project execution.