HALF-YEAR BUDGET RELEASE (JULY-DECEMBER 2009) AND 3RD QUARTER (JANUARY-MARCH 2010)
CASH LIMITS FOR FY 2009/10
1.0 Introduction
As part of the Government policy to enhance accountability and transparency in public expenditure, the Permanent Secretary/Secretary to the Treasury informs all Accounting
Officers, other stakeholders and the General Public that the Ministry of Finance, Planning and Economic Development released funds for FY 2009/10 to various Government
Ministries, Departments and Agencies (MDAs) for the period July to December 2009 and Cash Limits/ Releases for January- March 2010. Starting from this Financial Year, funds are released on a quarterly basis as opposed to monthly, in order to allow MDAs sufficient time to plan and execute their programmes.
2.0 Half Year (July to December 2009) Releases to Central Government Votes
A total of Ushs 2,071,800,269,844/= was released to various Government Ministries, Departments and Agencies (MDAs) during the period July to December 2009 for both Development
and Non-Wage Recurrent expenditures as summarized in the table below.
Please note that the transfers to Local
Governments for the same period were published in the media during the month of December 2009.
3.0 Low Absorption of the Released Funds Analysis of the half year budget performance for the period July to December 2009 has revealed weak absorption of resources released to the various Government Ministries /
Department/ Agencies.
Of the funds released in the first half of the FY 2009/10, only 55% had been absorbed as of 30th December 2009.
4.0 Third Quarter Releases
The funds for the 3rd quarter of the FY 2009/10 have been made to ONLY those institutions which have submitted clear activity work plans, budget performance reports as spelt out
in my letter of 5th January 2010 and also demonstrated readiness to absorb the funds earlier released.
5.0 Central Government Transfers to Local Governments for the 3rd Quarter of FY 2009/10
i) Whereas over 90 local governments have submitted their second quarter progress reports and 3rd quarter work plans to Ministry of Finance, Planning and Economic Development, ONLY the Ministry of Water and Environment and Office of the Prime Minister have submitted the advice for Ministry of
Finance, Planning and Economic Development to release the funds as per the requirements.
Sector Ministries are informed that no release will be made on any local government grant without a written communication by a sector Ministry responsible for the grant confirming their satisfaction on the use of the funds for the previous quarter and
the future work plan.
This issue has already been brought to the sector Ministries under a separate communication. The 3rd quarter releases have been made to ONLY those local governments
which have been recommended by the Sector Ministries to access the release.
ii) Accordingly, the third quarter releases for the following grants have not yet been made pending the advice from the responsible sector Ministries.
School Facilities Grant (SFG);
Primary Health Care (Development);
Equalisation Grant;
UPE Capitation;
Rural Feeder Roads;
Primary Health Care (Non Wage);
Plan for Modernisation of Agriculture (PMA);
District Hospitals; and
Primary Health Care (NGO Non-Wage).
iii) The release for Rural Feeder Roads is only for the PRDP component. No release has been made for RRP provisions because the Ministry of Works and Transport has not advised
accordingly.
iv) As indicated in the earlier release circulars, with effect from third quarter of FY 2009/10, local Governments will
access funds for routine and periodic feeder roads maintenance from the Road Fund. Arrangements have been made to release these funds separately.
6.0 The Accounting Officers of the non compliant Votes should note that funds for the 3rd and 4th quarters will only
be released after submission of the acceptable performance reports and work plans.
7.0 The Ministry of Finance, Planning and Economic Development requests all the stakeholders and the general
public to follow up on the utilization of the above funds for proper delivery of public services.
All local government
Accounting Officers are requested to ensure that the released funds are displayed on the Notice Boards at the relevant Government facilities.
