Govt cuts quarter one expenditure to curb inflation

 By Ritah Kemigisa

The ministry of finance has cut down on expenditure and limited cash for the first quarter to mitigate the current inflationary trend.

Releasing money for the First Quarter of the financial year, the finance ministry permanent secretary and secretary to the treasury Ramathan Ggoobi revealed that the funds have been cut by 19% translating into Shs 4.6 trillion approved for Quarter one.

According to the acting Director Budget Laban Mbalamuko, the government ought to have released 25% which is about Shs 12 trillion of the approved Shs 48.1 trillion national budget.

Now out of the released funds for quarter one, no money has been given for debt and capital expenditure.

However, Shs 662 billion has been fully released to clear arrears while Shs 230 billion has also been fully provided for pension and gratuity.

The funds for Development and Nonwages have been cut from Shs 2.3 trillion to Shs 596 billion and from Shs 3.4 trillion to Shs 1.8 trillion respectively.

Security agencies have been provided with Shs 721 billion, parliament Shs 175 billion, Judiciary 47.6 billion, and Universities Shs 98 billion.

Local governments have meantime been provided with Shs 98 billion while health and Agriculture institutions, Shs160bn and 13bn respectively.

Written by Noelyn Nassuuna