Accounting Officers warned as Finance ministry revises 2026/27 budget to Shs 78.25 trillion

KAMPALA, February 24, 2026 — Finance ministry’s Permanent Secretary and Secretary to the Treasury [PSST], Ramathan Ggoobi has directed all Accounting Officers in the ministries, departments and agencies [MDAs] not to sign contracts or Memoranda of Understanding [MoUs] with development partners on governance-related projects without prior authorisation from Cabinet.

The directive is contained in the Second Budget Call Circular on the finalisation of Ministerial Policy Statements and detailed estimates of revenue and expenditure for the Financial Year [FY] 2026/27, issued on February 13, 2026. Ggoobi noted that the guidance is in line with Cabinet Minute 164 [CT 2025].

“As you finalise your budgets for FY2026/27, you are directed not to enter into agreements or Memoranda of Understanding with Development Partners on governance issues without prior clearance from Cabinet,” Ggoobi wrote.

He warned that any financing proposals from development partners on governance matters will now be subjected to a consultative process involving the Finance ministry, the Ministry of Justice and Constitutional Affairs, the Ministry of Foreign Affairs and the Ministry of Internal Affairs.

“Strict adherence is required, and any deviations will be considered a breach of Cabinet directive,” he emphasised.

The move aims to tighten central oversight over externally funded governance programmes, an area that has often attracted significant donor financing and policy sensitivities.

At the same time, the Ministry of Finance unveiled the revision of the national budget for FY2026/27. The resource envelope is now projected at Shs 78.25 trillion, reflecting an increase of Shs 8.85 trillion from the Shs 69.399 trillion initially communicated in the First Budget Call Circular.

“In line with the above adjustments, all Accounting Officers are requested to revise their budget estimates as per the current Indicative Planning Figures. These are hard ceilings with no post-submission negotiations,” Ggoobi said.

“You are required to exercise allocation efficiency to achieve maximum impact through efficient and strategic allocation of resources,” he added, underscoring government’s renewed focus on fiscal discipline.

Ggoobi also revealed that since July 1, 2021, the government has injected the Shs 3.788 trillion into the Parish Development Model [PDM], capitalising 10,589 eligible PDM SACCOs across the country.

“Since 1st July 2021, Government has capitalised 10,589 eligible PDM SACCOs to a tune of Shs 3.788 trillion and is now in the Sustainability and Acceleration Phase, to be undertaken on a village-by-village basis,” he said.

According to Ggoobi, all Local Government Accounting Officers must fully budget for activities under the Sustainability and Acceleration Phase of the PDM through the extension, production and marketing grants.

“The activities for the compilation of the State of the Parish Economy and Asset Register [SPEAR] report and development of Parish Action Plans should be budgeted and funded through the discretionary development equalisation grant,” he added.

In another directive, Ggoobi ordered all MDAs and local governments [LGs] to obtain clearance from the Ministry of ICT and National Guidance before procuring ICT-related goods and services. The requirement follows the establishment of the Governmental Digital Registry, a central system profiling all government digital assets.

“This registry enables real-time visibility of existing digital systems across Government and identifies areas of potential duplication or inefficiency,” he said.

“Accordingly, all MDAs and LGs are required to seek and obtain clearance and approval from the Ministry of ICT and National Guidance prior to including any budget provisions for new digital systems, ICT infrastructure upgrades, software applications, or digital transformation initiatives in their annual budget submissions,” he added.

The Finance ministry further signalled that the 2026/27 budget will prioritise cleaning up public expenditure management and enforcing execution discipline, with plans to punish and reward Accounting Officers based on performance.

The circular introduces an Accounting Officers’ Budget Discipline Charter aimed at tightening control over public funds.

“It demands fiscal discipline, adherence to work plans, timely budget submission and robust internal controls. It also emphasises personal accountability by Accounting Officers to Parliament for ensuring proper use of money, with penalties for non-compliance such as failure to implement Auditor General’s recommendations or mismanagement of funds,” the circular reads in part.

https://thecooperator.news/parliament-approves-shs-8-trillion-supplementary-budget/

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