Government spent less than planned in December – report

Government spent less than planned in December – report

The Ministry of Finance has said government spent less than planned, registering a surplus of Shs382.71b against a planned deficit of Shs21.22b during December.

The surplus was, according to the Ministry of Finance, on account of lower spending and a slight surplus in revenue collections during the period.

“Domestic revenues amounted to Shs2.409 trillion, registering a surplus of Shs20.73b on account of [increased revenue from] taxes on international trade and direct domestic taxes as companies filed more tax returns than what was expected,” Ministry of Finance said in a report released on Monday.

During the period, government, according to the report, had planned to spend Shs2.60 trillion in December but only spent Shs2.22 trillion at a budget performance rate of about 85 per cent.

The report indicates that there was lower than planned spending on development projects mainly arising from low absorption in the externally financed projects.

However, other recurrent expenditures and domestic arrears were above programmed spend for the month.
The report also notes that government raised Shs1.791 trillion (at cost) from the sale of government securities, of which Shs1.109 trillion was raised from four auctions (three T-Bill auctions and one T-Bond auction) of government instruments, whereas Shs682.3b was raised from a private placement.

Securities worth Shs409.45b matured and were refinanced, while Shs1.382 trillion went towards financing other items in the budget.

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