NO SALARY INCREMENT, VEHICLE PURCHASE & TRAVEL ABROAD: Museveni Government Sets Tough Conditions for 2023-2024 Financial Year

President Yoweri Kaguta Tibuhaburwa Museveni’s government, through its Ministry of Finance, Planning and Economic Development (MoFPED), has announced tough budgetary measures for Ministries, Departments and Agencies (MDAs) as well as public servants. The measures for the 2023-2024 Financial Year (FY) touch on salary increment, travel abroad and vehicle purchase, among others.

In his second budget call circular issued on February 15, 2023, Finance Ministry Permanent Secretary and Secretary to the Treasury (PSST) Ramathan Ggoobi noted that the Ugandan economy was projected to grow at between six per cent (6%) to seven per cent (7%) in FY 2023/24 up from 5.3% in this current FY 2022/23.

Meant to guide Accounting Officers to finalize the budget estimates for FY 2023/24, the second budget call circular (BCC) also indicates that the preliminary resource envelope for FY 2023/24 has been adjusted upwards to Shs 50.871 trillion from Shs 47.328 trillion in FY 2022/23.

According to PSST Ggoobi, there will be no new borrowing in the next financial year and this trend is expected to continue over the short to medium term.

Despite the growth projections and budget increment, government has moved to cut expenditure in the next financial year.

The circular indicates that no entity shall receive an increase in the next financial year’s budget. The Parish Development Model (PDM) allocation of Shs 1.059 trillion will be maintained in the budget for FY 2023-24.

Government will also restrict travel abroad to only the heads of the three Arms of Government (Executive, Parliament and Judiciary), and their Deputies.

Ggoobi also indicated that vehicle purchase will also be frozen in FY 2023/24, meaning that government does not intend to buy new vehicles for its officials in the next financial year.

The other measure, which government employees such as secondary school arts teachers and local government employees may not like, is the suspension of salary enhancement for one year.

It should be remembered that government increased salaries of science teachers, health workers and other scientists in the current financial year. You can see the current salary structure showing how much each category of government employees earns at the moment HERE.

You can also see the list of Uganda’s most highly paid government employees HERE.

https://www.pearltimes.co.ugst-kana-ss-shines-in-2022-uce-leads-in-sciences/