By Mulengera Reporters
As Uganda prepares for the 2026 general elections, the government has announced that no new administrative units will be created or operationalized in the 2025/26 financial year. The move is expected to ease concerns from critics who have accused the government of inflating the wage bill at the expense of service delivery.
The announcement was made by Secretary to the Treasury, Ramathan Ggoobi, through the Second Budget Call Circular issued last week to all Accounting Officers. The circular outlined the fiscal consolidation strategy for the upcoming budget, emphasizing strict adherence to key financial principles.
“No new administrative units—including districts, cities, municipalities, sub-counties, parishes, and constituencies—will be created or operationalized in FY2025/26,” Ggoobi stated in the circular.
The decision comes despite an earlier announcement in August 2024 by Prime Minister Robinah Nabbanja, who had informed Parliament of plans to operationalize 10 additional cities by July 1, 2025.
City Expansion Plans
On April 28, 2020, Parliament approved the creation of 15 new cities, set to be operationalized in phases. The first 10 cities—Arua, Mbarara, Gulu, Jinja, Fort Portal, Mbale, Masaka, Hoima, Lira, and Soroti—became operational on July 1, 2020. However, the remaining five cities—Entebbe, Moroto, Nakasongola, Kabale, and Wakiso—have faced multiple delays in their implementation.
The establishment of these cities led to the creation of 42 sub-counties, five town councils, and the merger of 28 municipal divisions into 20 new city divisions. The government had argued that these changes would attract competent leaders, enhance service delivery, and meet citizens’ expectations.
However, the anticipated benefits have been overshadowed by financial and administrative challenges. In July 2023, Speaker of Parliament Anita Among expressed hesitation about approving new administrative units, citing unresolved issues from those created during the 10th Parliament. She pointed out that the new cities were struggling with funding shortages, making full operationalization difficult.
“We must avoid repeating the mistakes of the 10th Parliament, which rushed to create cities without securing adequate funds for their functionality,” Among warned.
Auditor General’s Findings
The former Auditor General, John Muwanga, flagged several issues in his December 2022 report regarding the operational challenges of the newly created cities. His findings included: Insufficient funding for city operations, delays in restructuring staff establishments following annexation of lower local governments, lack of guidance from the Ministry of Local Government on asset-sharing among affected local governments, and persistent financial reporting challenges, including underutilization of allocated funds
The report revealed that in the 2021/22 financial year, the 10 cities received UGX 427.34 billion from the central government. However, only UGX 371.28 billion (87%) was spent, leaving an unspent balance of UGX 41.22 billion (13%). Additionally, five cities failed to disclose liabilities amounting to UGX 1.76 billion, stemming from the merger of 75 local governments.
Unauthorized Recruitment
Meanwhile, the Secretary to the Treasury cautioned Accounting Officers against unauthorized recruitment and premature staff retirements, particularly within the science cadre, citing these as key contributors to wage shortfalls.
Ggoobi emphasized that recruitment should only be undertaken with explicit clearance from the Ministry of Public Service and confirmation of available wage funds.
“Those who recruit beyond the approved staff levels, leading to wage shortfalls, will be held individually responsible. Early retirements should be processed strictly based on legitimate grounds as outlined in the Ministry of Public Service Standing Orders and related circulars,” Ggoobi warned.
In the 2024/25 budget, the government allocated UGX 7.513 trillion for the wage bill, an increase of UGX 22.88 billion from the previous financial year’s allocation of UGX 7.290 trillion.
Budget Freeze
The government has also imposed a freeze on vehicle purchases, except for security, rule of law, health service delivery, and revenue mobilization. Accounting Officers have also been instructed to budget for the implementation of digital number plates.
Following revelations in the Auditor General’s December 2024 report that expired drugs—worth UGX 316.65 billion, including ARVs, COVID-19 vaccines, and test kits—were destroyed, the Treasury has directed the Ministry of Health and related institutions to improve inventory management.
“Regular audits should be conducted to track stock levels, expiration dates, and usage patterns of vital medicines. Efforts should also be made to redistribute near-expiry drugs to high-demand facilities and work closely with suppliers to optimize delivery schedules and prevent overstocking and wastage,” Ggoobi advised.
The government’s new measures signal a shift towards tighter fiscal discipline as it prepares for the 2026 elections, prioritizing efficiency in resource allocation over administrative expansion-Parliament Watch. (For comments on this story, get back to us on 0705579994 [WhatsApp line], 0779411734 & 041 4674611 or email us at mulengeranews@gmail.com).
