KAMPALA – The Ministry of Finance and Economic Development has suspended all expenditure on end of year festivities.
In a circular to all accounting officers of central and local governments, as well as state-owned enterprises and public corporations, the ministry’s permanent secretary/secretary to the treasury, said the suspension was because the government was faced with expenditure pressures.
“As you are aware, the economy is faced with expenditure pressures and as such, the government is undertaking efficiency measures, which entail the need to adjust spending during this festive season in all Ministries, Agencies and Local Governments (MALGs),” the circular dated December 9, reads.
Patrick Ocailap, the deputy secretary to the treasury, signed the circular on behalf of the finance ministry’s permanent secretary, Keith Muhakanizi.
“Consequently, this is to direct you not to organize Christmas and end of year parties, as well as not to engage in the printing of Christmas cards, diaries, calenders, buying of Christmas gifts and hampers, and anything else related to such expenditures,” the circular adds.
The ministry, however, urged the ministries, departments, and agencies to utilise electronic options to deliver the relevant messages.
In July this year, the government implemented budget cuts in ministries, departments, and agencies, and this mainly affected budgets on; travel abroad, workshops, seminars as well as training.
Muhakanizi then in a July 9 circular to all accounting officers revealed that the cuts take effect in the first quarter of the 2020/21 Financial Year.
However, items such as rent, utilities, salaries, pension, and gratuity as well as verified arrears were given first priority, in what Muhakanizi explained that it was a measure to stimulate the economy following the devastating effects of the COVID-19 pandemic that caused the lockdown of most businesses.