The Permanent Secretary and Secretary to the Treasury (PSST), Ramathan Ggoobi, has issued a circular to all Accounting Officers, as well as Executive and Managing Directors of State-Owned Enterprises and Public Corporations, directing them on the finalisation of Ministerial Policy Statements and detailed estimates of revenue and expenditure for the Financial Year 2026/27.
Dr. Ggoobi said the Second Budget Call Circular is intended to reinforce fiscal discipline, strengthen performance accountability, align spending to key growth drivers, and reduce fragmentation in budget allocations.
He urged Accounting Officers to strictly adhere to the Public Finance Management Act and all related regulations and directives, noting that the budgeting and expenditure rules are designed to enhance fiscal efficiency, enforce budget execution discipline, and boost productivity.
“The budget for FY2026/27 will prioritise the ATMS and Enablers. Particular attention will be placed on cleaning up inefficiencies and enforcing execution discipline,” Dr. Ggoobi stated.
He revealed that the revised resource envelope for FY2026/27 is projected at Shs78.249 trillion, reflecting an increase of Shs8.85 trillion from the Shs69.399 trillion initially communicated in the First Budget Call Circular.
The PSST directed all Accounting Officers to revise their budget estimates in line with the updated indicative planning figures.
To standardise prices, ensure consistent quality, maximise economies of scale, improve time efficiency, and enhance value for money across Ministries, Departments and Agencies (MDAs) as well as Local Governments, Dr. Ggoobi announced that Government will implement collaborative procurement for common user items. These will be aggregated under a framework arrangement effective July 1, 2026.
“In line with Cabinet Minute 164 (CT 2025), and 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,” he emphasised.
Dr. Ggoobi further disclosed that the Ministry of Finance is developing a Planning Strategy to strengthen the government’s planning function. To improve performance, Government has allocated an additional Shs200 million to each Planning Unit in Ministries and Shs100 million to each Agency and Local Government Planning Unit.
“These funds are strictly meant to support research-based planning, equip planning units, facilitate staff training, and strengthen implementation of the programme approach to planning and budgeting. They must not be diverted to other purposes,” he said.
