Uganda’s Ministry of Finance has responded to growing public criticism over revised allowances for government officials, insisting that the changes were not introduced midway through the 2026/2027 financial year as some members of the public have suggested.

Deputy Secretary to the Treasury Patrick Ocailap explained that the revised rates are based on an earlier directive issued in February 2026 by the Ministry of Public Service Permanent Secretary, Catherine Bitarakwate Musiingwire. He said the original circular was intended to guide government institutions when preparing their budgets for the current financial year.

According to Ocailap, some government programmes had not completed negotiations before the national budget preparation period ended. This meant that their allowance arrangements were not included in the initial budgeting process, prompting the Treasury to issue a clarification to ensure they followed the existing public service framework.

He dismissed claims that government had created an entirely new allowance structure in the middle of the financial year, saying the September 21, 2026 communication was simply meant to guide programmes whose negotiations were concluded later. He explained that the affected institutions were expected to align their payments with the February directive.

Among the programmes affected are the Public Investment and Asset Management for Growth and Resilience Operation (PIM Plus), the Resource Enhancement and Accountability Programme (REAP), the Uganda Intergovernmental Fiscal Transfers Programme (UgIFT) and Funds Coordination for Global Fund Grants. These programmes reportedly completed negotiations after the deadline for preparing the 2026/2027 budget.

Ocailap further stressed that the revised allowances do not give government institutions permission to spend beyond their approved budgets. He said all payments must remain within the available resources allocated to each programme and must also comply with quarterly cash limits issued by the Treasury.

In the September communication, accounting officers were instructed to adjust their planned activities to fit within the resources available for the financial year. They were also advised to use the revised information when preparing budgets for the 2027/2028 financial year and beyond.

The explanation comes at a time when many Ugandans are concerned about the cost of government operations amid rising fuel prices, pressure on household incomes and the depreciation of the shilling. Although the Finance Ministry maintains that the allowances follow an existing policy, public debate continues over the timing of the clarification and its implications for government spending.