The Minister of State for Microfinance Haruna Kyeyune Kasolo reveals that effective Financial Year (FY) 2024/25, grants (funds) directly transferred as “other Government Transfers” through MDAs to local governments will be streamlined in the respective local government votes to ensure efficiency & also limit duplication of efforts.

Kasolo, who was opening a Local Government Budget Consultations for Financial year (FY) 2024/25 in Masaka district clarified that this directive excludes external financing governed by financing agreements & funds created by an Act of Parliament.

Regarding the lack of funds for production & marketing, as well as ex-gratia for councillors in the budget for FY 2024/25, the Minister assured them. “I wish to inform you that this has been addressed through a supplementary based on the reported shortfalls,” the Minister said.

The finance ministry has conducted these budget consultative meetings in Lira, Hoima, Masaka & Arua.

Effective utilization of public resources

In Hoima, the acting Commissioner in charge of Budget Policy and Evaluation, John Muheirwoha, said the government is expediting the rationalization of government agencies to create efficiency gains with better coordination & effective utilization of public resources.

“This will involve merger and non-creation of new administrative units within the spirit of rationalization of public expenditure (RAPEX),” said Muheirwoha.

Budget priorities 

In Lira, Finance Ministry Commissioner, Moses Kabanda, representing the minister, said the next FY budget will prioritize agriculture production & value addition, climate change & management of food security, implementation of the Parish Development Model, accelerated development of the mineral sector & consolidation of infrastructure development to reduce the cost of doing business.

Other priorities will be security & good governance, human capital development, digitalization & automation of the economy as well as private sector development. 

“I implore all of us to embrace efforts towards the implementation of the Parish Development Model,” said Kabanda. 

Following the government’s decision to undertake a special payroll audit, recruitment of staff was put on hold awaiting the outcome of the audit by the Auditor General.

“Only recruitment on a replacement basis was permitted given that it is resource neutral. Guidance on new recruitment will be informed by the results of the audit,” said Kabanda.