The Secretary to the Treasury, Ramathan Ggoobi, has directed accounting officers across ministries, departments, and agencies not to sign contracts or Memoranda of Understanding (MoUs) with development partners on governance-related projects without prior Cabinet approval.
The directive, issued in the second budget call circular for the 2026/27 financial year, requires that any governance financing proposals undergo consultations with key institutions, including the Ministry of Finance, Planning and Economic Development, the Ministry of Justice and Constitutional Affairs, the Ministry of Foreign Affairs, and the Ministry of Internal Affairs.
"As you finalize your budgets for FY2026/27, you are directed NOT to enter into agreements or Memoranda of Understanding with Development Partners on governance issues without prior clearance from Cabinet," Ggoobi warned, adding that deviations would constitute a breach of Cabinet directives.
The circular also revised the 2026/27 national budget resource envelope to Shs78.249 trillion, up from the earlier Shs69.399 trillion, instructing accounting officers to align estimates with the new ceilings and prioritize efficient resource allocation.
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Ggoobi stressed that the ceilings are final and non-negotiable once submitted.
The Treasury underscored continued investment in the Parish Development Model, noting that since July 2021, government has injected Shs3.788 trillion to capitalize 10,589 eligible PDM Saccos.
Local governments have been instructed to fully budget for activities under the programme's sustainability and acceleration phase, including parish action plans and the SPEAR report.
In a separate directive, accounting officers must obtain clearance from the Ministry of ICT and National Guidance before procuring ICT goods and services.
This follows the establishment of the Government Digital Registry, intended to eliminate duplication and improve efficiency in public digital systems.
"This registry enables real-time visibility of existing digital systems across Government and identifies areas of potential duplication or inefficiency," Ggoobi said.
The Treasury also signaled stricter enforcement of budget execution discipline. A new Accounting Officers' Budget Discipline Charter will require adherence to work plans, timely submissions, strong internal controls, and personal accountability to Parliament for proper use of public funds.
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Officials warned that accounting officers who fail to strengthen fiscal efficiency or implement Auditor General recommendations could face penalties, while high performers may be rewarded.
These measures underscore government efforts to tighten fiscal management, streamline digital investments, and strengthen accountability as Uganda prepares its 2026/27 National Budget.
