A major contributing factor was the delay in paying wages and salaries across key sectors, including the judiciary, health, and prison services.
The Finance Ministry's latest economic performance report highlights a significant shortfall in government expenditure for October 2024.
Total government spending amounted to Shs2,810.99 billion, falling short of the planned Shs3,289.34 billion.
This 14.5% underperformance was attributed primarily to delays in fund absorption by Central Government votes.
A major contributing factor was the delay in paying wages and salaries across key sectors, including the judiciary, health, and prison services.
These delays resulted in a shortfall of Shs130.53 billion in compensation-related expenses, further dragging down overall government expenditure.
The under-expenditure raises concerns about the efficiency of public financial management systems, particularly in critical sectors that directly impact service delivery.
While lower spending may ease short-term fiscal pressures, it risks undermining employee morale and disrupting essential public services.
The report underscores the need for improved budget execution and timely disbursement of funds to ensure critical sectors are adequately supported.
With the economy facing broader challenges, addressing these inefficiencies is crucial for maintaining public trust and achieving fiscal and developmental targets.
