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Economics That Works: How PS Ggoobi has saved Uganda’s Shs 2 Trillion In Repurposed Budgeting

By Executive Editor

Since 2021, when Ramathan Ggoobi was appointed the Permanent Secretary, the Ministry of Finance, Planning and Economic Development, and Secretary to the Treasury, the economist has ensured that the country cuts on reckless borrowing.

His intentional decision has so far saved the country over Shs 2 trillion.

Part of the strategies that resulted in realization of the said amount include cuts on procurement of new cars for politicians and public servants, halting of salary enhancements, delaying salary enhancements and limiting workshops, among others.

For instance, in the 2022/2023 Financial Year, the country saved Shs 1.7 trillion.

This money (Shs 1.1 trillion) was injected into the Parish Development Model (PDM). The other balance was given to scientists to create more innovations that are expected to result in job creation.

On travels abroad alone, the country has saved Shs 149 billion. In the last FY, Shs 241 billion was budgeted for travels abroad. However, in the next FY, only Shs 92 billion has been allocated for travels abroad.

Speaking at the high-level post-budget dialogue organized by ACODE recently, Ggoobi said that “We are restoring fiscal discipline in the government.”

“We are learning to live within our means. We are decreasing government expenditure. We are cutting Supplementary Budgets,” he said.

The Kampala Gazette understands that the government has cut supplementary budget allocation from Shs 6.3 trillion in the FY 2022/2023 to nearly Shs 3.5 trillion in the FY 2023/2024.

According to Ggoobi, the country’s economic outlook remains very positive and that “the focus will be to reduce domestic borrowing and ensure that the country collects enough revenue locally.”

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