The Ministry of Finance, Planning, and Economic Development has allocated over Shs1.2 trillion to ministries, departments, and agencies (MDAs) integrating functions from rationalized institutions.
In a letter dated 26 February 2025, the ministry instructed accounting officers to use the funds to implement new structures, updated mandates, and additional responsibilities.
While presiding over the House on 4 March 2025, Deputy Speaker Thomas Tayebwa read the Finance Ministry’s letter, which detailed the financial allocation. The government set aside Shs296 billion for recurrent expenditures, Shs940 billion for development costs, and Shs7 billion for statutory obligations.
“The purpose of this letter is to share Parliament’s resolution and request you to initiate the supplementary allocation in the programme budgeting system while submitting updated work plans,” the letter stated.
Tayebwa confirmed that Parliament had approved the transfer of budgets from rationalized agencies to the respective MDAs.
“What is crucial now is ensuring that the ministries and agencies take responsibility for executing their plans using the allocated funds,” he said.
Public Service Minister Calls for Faster Fund Transfers
Minister for Public Service Muruli Mukasa told Parliament that Shs29.6 billion had been allocated in the first quarter of the 2024/25 financial year to cover gratuity, pensions, and severance packages for affected employees.
He attributed delays in integrating agency functions into ministries to the Finance Ministry’s ongoing process of reallocating funds.
“Several institutions that have completed staff validation do not have the necessary wage allocations to pay salaries for retained employees. The Ministry of Finance must expedite the transfer of wage funds to the recipient MDAs,” Muruli Mukasa said.
Parliament urged the Finance Ministry to fast-track the release of funds to ensure a smooth transition and timely payments for affected workers.