In a decisive move aimed at tightening financial discipline within government agencies, Permanent Secretary and Secretary to the Treasury, Ramathan Ggoobi has imposed stringent bans on unauthorized recruitment and the creation of arrears.
While reading the First Quarter release on Tuesday the ministry headquarters, Ggoobi noted this Financial Year government must have a firm commitment to fiscal responsibility and prudent financial management across all departments because only the money that is present in the country’s revenue basket will be spent to avoid unnecessary borrowing.
He declared that no new hiring should occur without explicit clearance from the Ministry of Public Service, which will verify the availability of adequate wages. This directive aims to prevent unauthorized recruitments that could strain the government’s wage bill. Additionally, the PS instructed that any promotion or redeployment of staff to different cost centres must be supported by sufficient wage provisions to ensure financial sustainability.
“NO recruitment should be done without clearance from the Ministry of Public Service after ascertaining the availability of adequate wages from this Ministry;
Accounting Officers are required to ensure that every promotion and re-deployment of staff made to a different cost centre should be backed up by adequate wage provision; and All Government operations this financial year will underpin fiscal discipline, budget credibility, commitment to service delivery and timely project execution,” he ordered.
In a bid to maintain fiscal discipline, the PS highlighted the critical need for timely payments to service providers. Accounting Officers were instructed to prioritize these payments and clear domestic arrears promptly to prevent further accumulation and avoid penalties. “There should be no creation of arrears,” the PS stressed, underscoring the government’s determination to manage its finances prudently.
He also emphasized the importance of punctuality in financial obligations, directing all Accounting Officers to ensure that salaries, pensions, and gratuities are paid by the 28th of every month. To promote transparency, the PS mandated that payrolls for salaries and monthly pensions be prominently displayed on government institutions’ notice boards each month. This measure aims to foster accountability and reassure employees and pensioners of the government’s commitment to their welfare.
“All Accounting Officers must ensure that they pay salaries, pensions and gratuities by the 28th of every month; There should be a display of the payrolls for salaries and monthly pensions on Government institutions’ notice boards every month.”
Meanwhile, in this quarter Shs 1.990 trillion was released to cater for wages and salaries across the Government while Shs 323.50 billion is to cater for Pension and Gratuity and Shs 199.83 billion for Domestic arrears.
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