KAMPALA – The Ministry of Finance has announced budget cuts to foreign travel, workshops and seminars as well as training in all government ministries, departments and agencies.
In a circular dated July 9, Mr Keith Muhakanizi, the Permanent Secretary/Secretary to the Treasury, said the cuts, which take effect, are in line with limited revenue projections as a result of the Covid-19 pandemic.
“The expenditure limits are based on the government annual cash plan adjusted to take into account projected revenue performance during 2020/2021 due to the effects of Covid-19 on the overall economic growth and revenue generation,” the circular reads in part.
Mr Muhakanizi said items such as rent, utilities, salaries, pension, and gratuity as well as verified arrears will take first priority
The new adjustments are based on recommendations by a committee led by Gen Caleb Akandwanaho, aka Salim Saleh.
In June, President Museveni said Gen Caleb Akandwanaho, aka Salim Saleh, had cited areas for budget cuts that would save at least Shs5.3 trillion.
“As a consequence of discussions with the OWC, to refocus this year’s Budget priorities…consumptive expenditure items such as travel abroad, workshops and seminars, etc, have been suppressed,” Mr Muhakanizi states.