Government demands fiscal discipline, zero tolerance for corruption in FY 2025/26 budget execution

The Ministry of Finance, Planning and Economic Development (MoFPED) Wednesday convened a crucial meeting with Accounting Officers from across the government spectrum, urging strict accountability, transparency, and a robust fight against corruption in the execution of the Financial Year 2025/26 budget.

The meeting, held at Speke Resort, brought together Accounting Officers from Central Government ministries, Local Governments, Missions Abroad, Regional Referral Hospitals, and Public Universities. It was chaired by the Head of Public Service and Secretary to Cabinet, Lucy Nakyobe, who set a firm tone for the upcoming fiscal year.

Ms. Nakyobe emphatically called on the Accounting Officers to uphold “high levels of accountability, transparency, efficiency, discipline, and integrity,” while also being “result-oriented” in their duties. She stressed that public services must be delivered equitably and in a timely manner, adding that Accounting Officers must personally champion the fight against corruption within their respective entities.

“You should guard against committing Government without adequate resources,” Ms. Nakyobe warned. “Accounting Officers should ensure zero tolerance to creation of domestic arrears. Do not commit beyond cash limits.” She further urged them to fast-track project implementation, streamline procurement processes, and develop and publish clear service delivery standards.

Permanent Secretary/Secretary to the Treasury (PSST) Ramathan Ggoobi highlighted the budget process itself as a significant avenue for increased corruption within government, often exploited through what he termed “budget games.” He noted that Human Resource Officers, Procurement Officers, and Accountants were particularly under scrutiny.

Ggoobi revealed that MoFPED Budget Analysts have been specifically tasked to deepen budget analysis to “stamp out these budget games.” Among the identified practices are “Padding Play,” where Ministries, Departments, and Agencies (MDAs) request more funds than genuinely required, and the “crisis card” game, where MDAs claim catastrophic public outcomes if their budget requests are not fully met.

Addressing the broader issue of public service integrity, PSST Ggoobi attributed declining standards to a lack of adherence to the Ethical Code of Conduct. He cited a recent payroll audit by the Auditor General’s Office, which uncovered widespread issues including unauthorized recruitments, mischarges, payment of staff outside official systems (IPPS/HCM), unauthorized loan deductions, payment of “ghost staff,” and delays in processing pensions and gratuity.

Ggoobi underscored that with the full decentralization of pension and gratuity processing to the vote level, Accounting Officers are now “entirely responsible” for managing their respective salaries, pension, and gratuity payrolls through the Human Capital Management (HCM) system.

On a positive note, PSST Ggoobi announced that the long-standing challenge of low pay for Chief Administrative Officers, City, and Municipal Clerks has been addressed, with their monthly salaries significantly increased from Shs. 1.8 million to Shs. 12.75 million.

Accounting Officers, particularly from Local Governments, raised concerns during the meeting, calling for improved coordination with central government ministries in service delivery and additional wage allocations for the recruitment of more staff.

Concluding his remarks, PSST Ggoobi reiterated the government’s steadfast commitment to fiscal consolidation. “The Government remains dedicated to advancing the fiscal consolidation plan by implementing strategies that boost revenue collection, streamline public spending, and lower the fiscal deficit,” he affirmed.

The meeting served as a strong reminder to all government entities of the critical need for prudent financial management and unwavering accountability in the upcoming fiscal year.