Business
PSST Ggoobi To Punish any Accounting Officers Accumulating Domestic Arrears
In a decisive move to enforce fiscal discipline, Permanent Secretary/Secretary to the Treasury (PSST) Ramathan Ggoobi has issued stringent directives to all government accounting officers, demanding a “credible” budget for the 2025/26 financial year and a hardline stance against further accumulation of domestic arrears.
The Ministry of Finance, Planning and Economic Development’s latest circular signals a paradigm shift in budget management, with a clear focus on clearing the nation’s debt burden while simultaneously funding critical national projects.
Ggoobi’s message was unequivocal: accounting officers must prioritise the eradication of existing domestic arrears, with a firm deadline to clear the verified stock as of June 30th, 2024, within the next three financial years. “Any Accounting Officer who continues to accumulate new domestic arrears will be sanctioned accordingly,” he warned, emphasizing that no special allocations will be provided for newly incurred debts after the deadline.
This directive comes as the government prepares for significant financial commitments, including the Agricultural Transformation and Modernization Strategy (ATMS), national security, the 2026 general elections, and the Africa Cup of Nations (AFCON). The PSST confirmed that additional resources have been mobilized to cater for these critical expenditures, ensuring the debt clearance initiative does not compromise them.
Beyond debt management, Ggoobi’s orders place a heavy emphasis on accountability. Accounting officers will be held personally liable for project delays and must ensure the integrity of payrolls, eliminating “ghost workers” and guaranteeing that only legitimate staff receive salaries. Furthermore, job renewals for accounting officers will be directly tied to the progress of projects under their respective ministries, agencies, and departments.
The PSST’s stern approach reflects a determination to streamline government spending and ensure that public funds are used efficiently and effectively. This move is seen as vital for maintaining economic stability and fostering public trust as Uganda navigates significant national events and strategic development goals.
The financial community and observers are now watching closely to see how effectively these directives will be implemented and whether they will bring about the desired fiscal discipline within government agencies.
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