In a bid to control government spending, Uganda has ruled out the establishment of new administrative units in the 2025/26 financial year. The move is intended to curb rising expenditures as the country prepares for the 2026 general elections.
The decision was officially communicated through the Second Budget Call Circular by Secretary to the Treasury, Ramathan Ggoobi. In the directive, Ggoobi confirmed that no new districts, cities, municipalities, sub-counties, parishes, or constituencies would be created or made operational during the fiscal year.
This announcement contradicts a previous commitment made by Prime Minister Robinah Nabbanja in August 2024, where she assured Parliament that 10 additional cities would become operational by July 2025. Uganda had earlier approved the phased creation of 15 new cities, with 10 already launched in 2020. However, the remaining five—Entebbe, Moroto, Nakasongola, Kabale, and Wakiso—have faced delays due to financial and administrative constraints.
The decision to halt further expansions follows repeated concerns over the financial strain caused by newly created administrative units. Auditor General reports have highlighted severe funding shortages, with many of the recently established cities struggling to cover basic operational costs. Speaker of Parliament Anita Among has also warned against rapid expansion without sustainable financial planning.
In addition to freezing administrative restructuring, the government has imposed restrictions on vehicle purchases, except for those intended for security, health, and revenue mobilization. The Ministry of Health has been directed to improve drug inventory management after reports revealed that expired medicines worth Shs316.65 billion had been discarded.
Furthermore, the Treasury has cautioned Accounting Officers against unauthorized recruitment, particularly within the science sector, citing wage constraints.
As the 2026 elections draw closer, the government is tightening fiscal controls, prioritizing efficiency over administrative expansion.
Post a Comment