Uganda has stepped up efforts to strengthen budget discipline, credibility and accountability, with the Ministry of Finance, Planning and Economic Development (MoFPED) warning Accounting Officers that failure to comply with public-finance rules could trigger sanctions, including withheld releases and removal from office.
The reforms were highlighted by the Permanent Secretary and Secretary to the Treasury (PSST), Dr. Ramathan Ggoobi, during a recent meeting with Accounting Officers from Central and Local Governments.
The measures form part of the Government’s broader implementation-reform agenda for the 2026/27 financial year, which places greater emphasis on fiscal discipline, accountability, efficiency and results from public spending. The FY2026/27 Budget Execution Circular was issued by MoFPED on July 13, 2026.
At the centre of the reforms is an attempt to tighten control over how public funds are planned, released and spent, while reducing procurement inefficiencies, payment delays and practices that undermine the credibility of the national budget.
Counterpart funding moves to Treasury
Under the new arrangements, counterpart funding will be centralised under the Treasury Operations Department.
Ministries, Departments and Agencies (MDAs) will be required to submit their counterpart-funding requirements on a quarterly basis, allowing the Treasury to better coordinate cash-flow requirements and prioritise funding.
The move is intended to strengthen cash management and reduce fragmented requests for counterpart funding across government institutions.
Government pushes joint procurement
Government is also strengthening joint procurement for common-use items, including vehicles, information technology equipment and tyres.
The items will be procured through national framework agreements, with the Ministries responsible for ICT and Works expected to take the lead in their respective areas.
The approach is designed to standardise procurement, improve value for money and reduce duplication across government entities.
The procurement reforms are part of a wider push to digitise and strengthen public procurement and internal controls. Government has identified procurement reform and digitisation as key components of its implementation “clean-up” agenda.
Payroll deadlines tightened
Accounting Officers have also been directed to ensure timely salary and pension payments.
Under the new guidance, salaries should be paid by the 28th of every month, while pensions should be paid by the 15th.
The Government is simultaneously transitioning institutions to the Human Capital Management (HCM) system, with the transition expected to have been completed by July 2026.
The reforms are intended to improve payroll management, strengthen control over the public service wage bill and reduce delays in payments.
Government insists on tax compliance and Uganda shilling contracts
Accounting Officers have further been reminded to remit taxes and National Social Security Fund (NSSF) contributions by the 28th day of each month.
Government is also reinforcing its policy of conducting public contracts in Ugandan shillings.
Except for missions abroad and specific agreements with development partners where foreign currency arrangements are required, contracts are expected to be denominated in Uganda shillings.
The policy is aimed partly at limiting the exposure of government projects to exchange-rate fluctuations. Similar guidance has previously been included in MoFPED budget-execution instructions.
PDM enters sustainability phase
The Parish Development Model (PDM) has now entered its sustainability phase, with Shs1.059 trillion allocated to the programme for the current financial year.
Local governments have been directed to strengthen recovery of PDM loans through the Wendi platform and ensure that beneficiaries are not charged access fees.
The emphasis on loan recovery comes as Government seeks to move the programme from large-scale initial financing toward a more sustainable revolving model.
New controls on public investment projects
MoFPED has also tightened requirements for the management and reporting of public investment projects.
Accounting Officers have been directed to use project-management and reporting tools on the Integrated Bank of Projects (IBP).
In addition, 28 projects that have exited the public investment portfolio are expected to upload their completion and evaluation reports during the current quarter.
The measure is intended to improve tracking of project outcomes and ensure that Government can assess whether completed investments delivered the intended results.
Ggoobi warns against ‘budget execution games’
A major focus of the new approach is the Government’s warning against what MoFPED describes as “budget execution games.”
Accounting Officers have been cautioned against manipulating budget allocations or execution patterns in ways that undermine approved priorities.
The warning builds on previous budget-execution guidance in which Ggoobi cautioned against practices such as deliberately over-budgeting for wages and later seeking to reallocate the money to other expenditure categories toward the end of the financial year.
The Government is seeking to shift public spending away from an expenditure-driven model toward one focused on tangible results and value delivered to citizens.
Finance Minister Henry Musasizi made a similar call last week, urging planning, accounting and procurement officials to work together to improve budget implementation, financial discipline and service delivery.
Accounting Officers face tougher sanctions
MoFPED has warned that failure to comply with the Budget Execution Circular for FY2026/27 could have serious consequences for Accounting Officers.
Potential sanctions include non-renewal of contracts for Accounting Officer positions, withholding of budget releases, suspension from the Integrated Financial Management System (IFMS), public disclosure of non-compliance and referral to oversight institutions.
The tougher enforcement approach reflects Government’s stated intention to make budget discipline a core component of performance management.
The FY2026/27 Budget Speech already provided for all Accounting Officers to sign a budget discipline and accountability charter containing sanctions for breaches of accountability rules in the planning, budgeting and execution of public resources.
The reforms come as Uganda seeks to improve the efficiency of public spending while implementing the Fourth National Development Plan and the Tenfold Growth Strategy.
For MoFPED, the challenge is no longer simply allocating money in the national budget, but ensuring that approved resources are released, spent and accounted for in a manner that produces measurable results for citizens.
