In Summary
  • Condition. All accounting officers to first seek authority from Accountant General or Secretary to Treasury to approve or cancel any Local Purchase Orders.

KAMPALA. The Treasury yesterday released Shs4.398 trillion for the first quarter of the Financial Year 2018/2019 and warned accounting officers against accumulation of domestic arrears.
Secretary to Treasury Keith Muhakanizi said the prompt release follows reforms that have been undertaken in the Ministry of Finance, Planning and Economic Development to ensure timely execution of development programmes and delivery of improved services.
The Shs4.398 trillion release represents 26.8 per cent of the approved Budget for the first quarter of the Financial Year 2018/19, which runs from July to September.
“In line with the Ministry’s commitment to release funds before the 10th day of the first quarter, our ministry communicated the expenditure limits for Quarter One on July 5 for Central and Local Governments to ensure timely execution of government programmes,” Mr Keith Muhakanizi said at the Ministry of Finance.
He said the Public Finance Management Act, 2015, requires his ministry to issue the Annual Cash Plan at the beginning of the Financial Year.
“The annual cash plan contains projections of expenditure for Ministries, Departments and Agencies (MDAs) and Local Governments and is derived from work plans and procurement plans submitted by the MDAs and Local Governments (LGs),” Mr Muhakanizi said.
He said the issuance of quarterly expenditure limits now requires accounting officers to submit to MoFPED requests for Accounting Warrants for wage, pension/gratuity, and other non-wage and development budget within a week of issuance of the limits.
Mr Muhakanizi also warned accounting officers against accumulating arrears through cancellation of Local Purchase Orders (LPOs) and issuing new ones for other activities, which he said leads to non-payment of services providers and crowding them out of business.
“With effect from FY 2018/19, the Accountant General will grant the authority to approve and cancel LPOs. Accordingly, any Accounting Officer who wishes to have any LPO cancelled will first seek approval from the Accountant General or myself with justifiable reasons,” he said.
The Treasury also announced that with effect from FY2018/2019, procurement of air ticket will be made directly from respective airlines as guided by the cabinet to eliminate arrears for travel companies.