A total of Shs15.7 trillion remained unspent in the last financial year, exposing deep inefficiencies in government project implementation despite a full national budget allocation of Shs78.708 trillion by Parliament.
According to budget performance figures, only Shs63.00 trillion was actually utilised by the end of the financial year, leaving a significant portion of approved funds idle.
While government spending on salaries and recurrent expenditure remained relatively strong, development spending—meant for roads, schools, hospitals, and other infrastructure—recorded the worst performance.
On wages, government spent Shs7.46 trillion out of the planned Shs8.18 trillion, achieving about 96 percent execution. Similarly, non-wage recurrent expenditure such as utilities, fuel, and office operations saw Shs45.66 trillion spent out of Shs52.42 trillion, translating to about 93 percent utilisation.
However, development expenditure lagged significantly. Out of Shs18.11 trillion allocated for capital projects, only Shs9.88 trillion was spent—representing roughly 65 percent absorption.
The underperformance in development spending has been attributed to a combination of structural and operational bottlenecks, including delays in procurement processes, prolonged land acquisition procedures, and capacity gaps among contractors.
Officials also cited frequent revisions of project designs during implementation, which further slowed execution timelines and disrupted planned delivery schedules.
The accounting officer noted that these challenges continue to undermine the pace of infrastructure development despite increased budget allocations in recent years.
To address the problem, the Ministry is considering reforms that would centralise “matching funds”—government contributions required to unlock donor-funded projects—under a single coordinating authority to improve efficiency and timeliness in project execution.
Meanwhile, the Auditor General has urged government to conduct deeper investigations into the persistent implementation gaps, warning that bureaucratic bottlenecks and systemic inefficiencies are preventing citizens from benefiting from critical public investments.
The report further calls for the removal of administrative “roadblocks” that continue to delay the delivery of essential infrastructure such as schools, roads, and hospitals, despite consistent budget allocations.
