Finance ministry sets aside sh1.4 trillion to clear domestic arrears
According to the auditor general’s report, domestic arrears had increased from Shs10.5 trillion in the 2022/2023 financial year. By June 2024, the areas had accumulated to sh13.8trillion.
The Permanent Secretary and Secretary to the Treasury, Ramathan Ggoobi. (Courtesy Photo)
By Prossy Nandudu
Journalists @New Vision
KAMPALA - The Ministry of Finance Planning, and Economic Development has set aside sh1.4 trillion in its strategy that is aimed at eliminating domestic arrears in the next three financial years.
The exercise that starts this fiscal year of 2025/2026 was revealed by the Permanent Secretary and Secretary to the Treasury, Ramathan Ggoobi, through the X handle of the Ministry on Friday.
Ggoobi explained that the ministry has already set aside the sh1.4 trillion and that these will be released in the second quarter of this financial year, which is (October - December 2025 after verification by an independent Audit Firm.
He also added that to curb further accumulation of domestic arrears, the ministry will sanction all Accounting Officers who create new arrears. And that this measure will also form a basis for non-renewal of performance contracts as Accounting Officers.
According to the auditor general’s report, domestic arrears had increased from Shs10.5 trillion in the 2022/2023 financial year. By June 2024, the areas had accumulated to sh13.8trillion.