The Ministry of Finance, Planning and Economic Development has issued the Budget Execution Circular (BEC) for the Financial Year 2025/26, outlining key fiscal and administrative directives to guide implementation of the new budget. The circular sets the stage for the Fourth National Development Plan (NDP IV) and the Tenfold Growth Strategy, focusing on accelerating economic transformation, maintaining fiscal discipline, and enhancing transparency across government spending.
Permanent Secretary and Secretary to the Treasury (PSST) Ramathan Ggoobi issued the circular under the Public Finance Management Act, targeting all Accounting Officers across central and local governments, public corporations, and state-owned enterprises. He described the budget as a pivotal tool to drive Uganda’s development agenda while ensuring effective service delivery and responsible financial stewardship.
“This budget is a bridge to our future, aligning resources with the transformative goals of NDP IV and the aspirations of our people,” Ggoobi said.
Strategic Focus Areas
The FY 2025/26 budget emphasizes four production pillars—Agro-industrialisation, Tourism, Mineral-based Industry, and Science, Technology & Innovation (ATMS)—backed by enablers such as peace and security, infrastructure, human capital development, and anti-corruption. According to Ggoobi, these priorities are intended to “monetize the economy, drive value chains, and position Uganda for inclusive prosperity.”
Tightened Fiscal Controls and Domestic Arrears Clearance
The Ministry has allocated Shs 1.4 trillion to clear verified domestic arrears, with a firm warning to Accounting Officers against accumulating new debts. Ggoobi emphasized that those who sign contracts without verified budget allocations will face sanctions, including non-renewal of their appointments.
“We are committed to eliminating arrears within three years. Any new arrears created will lead to personal liability,” he cautioned.
All procurements and payments must be executed in Uganda shillings (UGX), in line with the budget appropriation, while in-year requests for additional expenditure will not be entertained, reinforcing the government’s fiscal consolidation agenda.
Tax Compliance and Accountability Measures
Accounting Officers must remit all taxes and social security deductions to the Uganda Revenue Authority (URA) and the National Social Security Fund (NSSF) on time. Ggoobi emphasized that delays will attract corrective action. An independent firm will vet all verified arrears to ensure fairness and transparency.
The Ministry will also publish quarterly performance reports, and defaulting officers risk suspension from the Integrated Financial Management System (IFMS) and public exposure. Officers have 30 days after the end of each quarter to submit compliance reports.
Empowering Local Governments and Grassroots Economies
The Parish Development Model (PDM) received Shs 1.096 trillion for FY 2025/26 to fund income-generating activities at the parish level. Under the Uganda Inter-Governmental Fiscal Transfers Programme (UgIFT), funds will complete key health and education infrastructure by December 31, 2025.
Ggoobi called for regular Finance Committee meetings and quarterly accountability days at the local government level to track performance and resource use. The State of the Parish Economy and Asset Register (SPEAR) will support local-level planning, while the new Area-Based Commodity Development (ABCD) Portal will consolidate commodity value chain data to inform investment.
Guarding Against Budget Misuse
Ggoobi warned against misuse of budget provisions through fabricated emergencies or exaggerated needs, urging Accounting Officers to remain focused on national priorities.
“This circular is our blueprint for transformative growth. We expect unwavering commitment to transparency, efficiency, and service delivery to realize NDP IV’s ambitions,” he stated.
With the 2026 general elections approaching, this year’s budget serves a dual purpose: advancing Uganda’s development goals and ensuring a stable, peaceful political agenda.
