Ministry of Finance has put into effect the budget cuts proposed by Gen Salim Saleh, the head of Operation Wealth Creation-OWC.
The cuts take effect in the first quarter of 2020/2021 Financial Year (FY) according to the circular issued by Keith Muhakanizi, the Permanent Secretary/Secretary to the Treasury.
The budget cuts affect travel abroad, workshops and seminars as well as training. Items such as rent, utilities, salaries, pension, and gratuity as well as verified arrears will take first priority, in what the government perceives as a measure to stimulate the economy following the devastating effects of the Covid-19 pandemic and the resultant lockdown.
All ministries, agencies and departments are directed to stick to the guidelines regarding expenditure limits for the quarter that runs from July to September, and only entities with approved accounting officers will receive money.
This implies that accounting officers are not expected to release any cash to activities in the category listed in the table for the first quarter.
“The expenditure limits are based on the government annual cash plan adjusted to take into account projected revenue performance during 2020/2021 due to the effects of Covid-19 on the overall economic growth and revenue generation,” reads Mr Muhakanizi’s circular addressed to the Chief Administrative Officers.
He directed accounting officers to ensure prompt payment, mainly of salaries, pension and gratuity by the 28th of every month.
In June, shortly after Parliament passed the Shs45.5 trillion Budget, President Museveni said Gen Caleb Akandwanaho, aka Salim Saleh, had cited areas for budget cuts that would save at least Shs5.3 trillion.
The directive was followed by a prompt meeting between technical officers of government and officials from OPM, which is headed by Gen Saleh to harmonise the Budget.
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