Kampala — The Ministry of Finance, Planning and Economic Development has raised red flags over increasing manipulation of the budgeting process by both central and local government accounting officers, describing it as a new conduit for misappropriating public funds.
Speaking during a high-level meeting on budget execution for the financial year 2025/2026, Permanent Secretary and Secretary to the Treasury (PSST) Ramadan Ggoobi revealed that investigations had uncovered what he termed “Budget Games,” where institutions deliberately inflate funding requests beyond actual needs.
“Somehow, accounting officers intentionally request more funds than required,” Ggoobi stated, adding that the problem is especially prevalent among Human Resource Officers, Procurement Officers, and Accountants.
The meeting brought together Accounting Officers from Central and Local Governments, Public Universities, Regional Referral Hospitals, and Uganda’s Missions Abroad, with the goal of ensuring better execution of the national budget.
Ggoobi highlighted several unethical practices, including what the ministry has dubbed the “Padding Play” — a technique where Ministries, Departments, and Agencies (MDAs) overstate their resource needs.
Another tactic is the use of the “crisis card,” where MDAs claim disastrous consequences if their inflated budget demands are not met.
“The Ministry of Finance Budget Analysts have been tasked to deepen analysis and eliminate these budget games,” Ggoobi noted.
He expressed concern over declining integrity among public servants, citing poor compliance with the Ethical Code of Conduct as a root cause.
A payroll audit by the Office of the Auditor General unearthed multiple anomalies such as unauthorised recruitments, mischarges, ghost workers, unapproved loan deductions, and delays in processing pensions and gratuity.
With the full decentralisation of pension and gratuity processing now under the control of individual votes, Ggoobi reminded Accounting Officers that they are wholly responsible for managing salaries and pension systems through the Integrated Personnel and Payroll/Human Capital Management (IPPS/HCM) system.
In response to staffing challenges, local government representatives appealed for additional wage provisions to support recruitment and called for better coordination between local and central entities.
Ggoobi also announced that the longstanding issue of low remuneration for Chief Administrative Officers, City Clerks, and Municipal Clerks had been addressed. Their monthly salary has been raised significantly — from 1.8 million to 12.75 million Ugandan Shillings.
He reiterated government’s commitment to fiscal discipline, saying, “The Government remains dedicated to advancing the fiscal consolidation plan by boosting revenue collection, streamlining expenditure and reducing the fiscal deficit.”
The session was chaired by Head of Public Service and Secretary to Cabinet Lucy Nakyobe, who urged the Accounting Officers to embrace integrity, efficiency and accountability.
“Do not commit government without adequate resources. Ensure zero tolerance for the creation of domestic arrears. Do not commit beyond cash limits,” she warned.
Nakyobe also emphasized the need for quick project implementation, streamlined procurement processes, and publication of clear service delivery standards.
She concluded by challenging Accounting Officers to be at the forefront of fighting corruption and ensuring timely, equitable service delivery.
English 