Kampala, Uganda | The Secretary to the Treasury, Ramathan Ggoobi, has barred Accounting Officers in Ministries, Departments and Agencies (MDAs) from signing contracts or Memoranda of Understanding (MOUs) with development partners on governance-related projects without prior clearance from Cabinet.
In the Second Budget Call Circular issued on February 13, 2026, Ggoobi directed that as MDAs finalise their budgets for the 2026/27 financial year, they must not enter into agreements with development partners on governance issues without Cabinet authorisation.
He explained that any financing proposals on governance matters would first undergo a consultative process involving the Ministry of Finance, the Ministry of Justice and Constitutional Affairs, the Ministry of Foreign Affairs, and the Ministry of Internal Affairs.
He warned that strict adherence to the directive was required and that any deviation would amount to a breach of Cabinet Minute 164 (CT 2025).
The Ministry of Finance also revised the resource envelope for FY2026/27 to UGX78.249 trillion, reflecting an increase of UGX8.85 trillion from the UGX69.399 trillion earlier communicated in the First Budget Call Circular.
Ggoobi asked Accounting Officers to revise their detailed budget estimates in line with the updated Indicative Planning Figures (IPFs), stressing that the ceilings were final and would not be subject to post-submission negotiations.
He urged them to prioritise allocation efficiency to maximise impact through strategic use of available resources.
Ggoobi revealed that since July 1, 2021, Government has injected UGX3.788 trillion into the Parish Development Model (PDM), capitalising 10,589 eligible PDM SACCOs across the country.
He said the programme has now transitioned into the Sustainability and Acceleration Phase, to be implemented on a village-by-village basis.
He therefore directed all Local Government Accounting Officers to fully budget for activities under this phase using the Extension, Production and Marketing grants.
He further noted that activities related to the compilation of the SPEAR report and development of Parish Action Plans should be financed through the Discretionary Development Equalisation Grant (DDEG).
In a move aimed at strengthening digital governance, Ggoobi also directed all MDAs and Local Governments to seek clearance from the Ministry of ICT and National Guidance before budgeting for or procuring ICT-related goods and services.
He said the requirement follows the establishment of the Governmental Digital Registry (GDR), a system designed to profile and maintain a comprehensive inventory of all Government digital assets.
According to him, the registry enables real-time visibility of existing systems and helps identify duplication and inefficiencies.
As such, he emphasised that no new digital systems, ICT infrastructure upgrades, software applications or digital transformation initiatives should be included in annual budget submissions without prior approval from the Ministry of ICT and National Guidance.
The circular also signalled a tougher stance on enforcement of budget discipline in the 2026/27 financial year.
Ggoobi indicated that Government would both reward and sanction Accounting Officers depending on their level of compliance with fiscal efficiency and budget execution standards.
He outlined plans to introduce an Accounting Officers’ Budget Discipline Charter, which would require strict adherence to approved work plans, timely budget submissions, strong internal controls and personal accountability to Parliament.
The charter, he noted, would also impose penalties on officers who fail to implement recommendations of the Auditor General or are found culpable of mismanaging public funds.
The latest measures reflect Government’s renewed push to streamline donor engagement on governance issues, tighten fiscal discipline and enhance accountability in the utilisation of public resources ahead of the new financial year.
