Govt releases Shs 15.64 trillion for third quarter of financial year 2024/25

This release is aligned with our continued effort to maintain fiscal discipline by directing resources towards Industrialisation, Tourism, Minerals, and Science, Technology and Innovation (ATMS) alongside their enablers
The Ministry of Finance, Planning, and Economic Development has released Shs 15.64 trillion for the third quarter of the 2024/25 financial year, marking 21.68% of the approved national budget.
This was announced by Ramathan Ggoobi, the Permanent Secretary and Secretary to the Treasury, during a press briefing held on January 21, 2025.
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The funds are aimed at supporting key government priorities, including salaries, operational budgets, and development projects.
“This release is aligned with our continued effort to maintain fiscal discipline by directing resources towards Industrialisation, Tourism, Minerals, and Science, Technology and Innovation (ATMS) alongside their enablers,” Ggoobi stated.
Ggoobi highlighted the robust performance of the economy, with GDP growth reaching 6.7% in the first quarter of the fiscal year, up from 5.6% during the same period in FY 2023/24.
Key growth drivers included food crop production, agro-processing, construction, wholesale trade, and transport activities.
Inflation remained stable within the 5% target, despite a slight rise to 3.3% in December 2024 due to festive season demand.
The Ugandan Shilling also showed resilience, appreciating by 0.4% in December, trading at an average of Shs 3,664.08 per US dollar.
Wages and Pensions: Shs 2.044 trillion has been allocated for wages and Shs 283.28 billion for pensions and gratuities.
Education: Shs 112.28 billion has been released for Education Capitation Grants, covering the first term of the school year.
Health: Shs 110.65 billion has been allocated to the National Medical Stores for essential drugs, while referral hospitals and institutions such as the Uganda Cancer Institute and Uganda Heart Institute received Shs 35.9 billion and Shs 7.52 billion, respectively.
Wealth Creation: Shs 529 billion has been provided for the Parish Development Model, alongside additional funds for Uganda Development Bank and Uganda Development Corporation.
Security: The Ministry of Defence received Shs 348.3 billion, while the Uganda Police Force and Uganda Prisons Service received Shs 83.38 billion and Shs 40.11 billion, respectively.
Development initiatives also received significant allocations, with Shs 3.314 trillion earmarked for various projects.
Notable investments include Shs 396.55 billion for transport infrastructure, Shs 264.71 billion for health sector projects, and Shs 124.45 billion for education expansion efforts.
Domestic revenue collection surpassed expectations, with Shs 15.33 trillion raised by December 2024 against a target of Shs 15.01 trillion, creating a surplus of Shs 326.83 billion. For the full financial year, Uganda Revenue Authority is expected to collect Shs 31.98 trillion.
“The economy is projected to grow between 6% and 6.5% this year, with inflation and the exchange rate remaining stable. Fiscal performance is expected to achieve 100% of the revenue target,” Ggoobi noted.
The Ministry has directed accounting officers to ensure prompt payment of salaries, pensions, and gratuities by the 28th of each month. Service providers are to be paid on time to avoid accumulating arrears.
Ggoobi warned against committing government funds without a budget and urged officers to prioritise efficiency in service delivery.