The Permanent Secretary, Ministry of Finance, Planning and Economic Development has ordered accounting officers to pay government suppliers on time, and avoid accumulation of arrears.
PS Ramathan Ggoobi made these orders while releasing Shs 1.811.08 billion to government ministries for Quarter II of the Financial Year 2020/21. A copy of the release statement is available below this story.
Details show that Shs 80 billion out the released cash will go to clearing arrears.
During the release at Finance headquarters in Kampala on Wednesday, Ggoobi, tasked civil servants to ensure that they pay wages, salaries, pensions and gratuity by 28th of every month.
He ordered display of the payrolls for salaries and monthly pension on Government institutions’ notice boards every month, timely submission of performance reports and accountability and clearance of domestic arrears.
The release
The funds (5.811.08 billion), is 25.5% of the government approved budget (excluding External Financing, Appropriate in Aid and Public Debt).
The fund, according to Ggoobi, has priorities in health and social protection, agriculture and industry, governance and Uganda Revenue Authority (URA), Judiciary and Legislation.
Ggoobi said during the period under review, the economy grew by 3.4 percent and that the size of the economy in normal terms increased to Shs 147, 962 billion in 2020/21 from 139, 689 billion in 2019/20.
“Performance so far this financial year indicates that the economy has continued on its recovery path following the partial reopening of the economy,” he said.
According to Ggoobi, inflation has remained low and stable.
He, however, says that inflation is expected to rise through 2021 but is projected to remain below 5% target.