The Deputy Secretary to the Treasury, Patrick OcailapBy Prisca WanyenyaThe Deputy Secretary to the Treasury, Patrick Ocailap, has defended government’s decision to double allowances for public servants, saying the circular is an old communique issued to guide Accounting Officers on budgeting for revised allowances.His remarks came in a clarification issued by the Ministry of Finance on its social media platforms on October 27, 2026, following public backlash over the timing of the increase amidst the rising cost of living fuelled by high fuel prices and depreciation of the shilling.“It is not a new circular issued in the middle of the financial year. You couldn’t do that. It cannot happen. That means a new circular, new allowances in the middle of the financial year. So absolutely, it is an ongoing circular done by the Permanent Secretary, Ministry of Public Service, but giving clarification to those programmes which are concluded after the financial year started,” Ocailap said.According to the Ministry of Finance, the circular announcing the increment was earlier issued by the Ministry of Public Service and the new allowances are already in effect. The communication from the Ministry of Finance was intended to alert heads of government institutions to effect similar changes in new projects like 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 Program (UgIFT), and Funds Coordination for Global Fund Grants, whose negotiations had delayed.He explained: “Besides alignment to the public service structure, besides being in the budget, they are equally subjected to the available cash limits which are issued every quarter. In this case, I had to clarify for those entities who are implementing those programmes which were negotiated past the financial year.”It should be recalled that last week, a September 21, 2026 circular issued by the Deputy Secretary to the Treasury announced revised rates for duty facilitation allowances, wherein he wrote: “You should, therefore, rationalise all your planned activities and fit them within the available resources in FY2026/27. Secondly, you are advised to plan and budget with this new information for FY2027/28 onwards.”MPs Question TimingDuring debate on the State of the Economy at the October 27 plenary sitting, Karim Masaba, MP for Mbale Industrial Division, castigated government over the timing of the revision, yet the same government is asking citizens to be frugal.“On the fiscal side, the Minister didn’t really address it much because he made a statement that government has cut down on expenditure. But I saw a document circulating, which I need him to confirm, with revised duty facilitation allowances for government workers, which I believe is not right at this moment as we are looking to scale down on our expenditure as a country,” Masaba said.“So, if we are saving money, as you have stated, that you’ve released less by Shs3 trillion, where is that money going? Why don’t we look at revising the tax rates as well?”Masaba’s remarks were in response to a statement by the Minister of for Finance, Henry Musasizi, in which he indicated that government will rationalise non-essential expenditure, including foreign and domestic travel, workshops and meetings, while protecting critical public services.Musasizi said: “We will also strengthen expenditure discipline and cash management to reduce unnecessary liquidity pressures and moderate domestic borrowing requirements. Households should prioritise essential expenditure, conserve fuel and energy, and make informed purchasing decisions.”New RatesIn the revised rates, the Vice President who has been earning UGX210,000 per night will now earn UGX500,000, while the Prime Minister’s rate will increase from UGX200,000 to UGX490,000, and Deputy Prime Ministers from UGX195,000 to UGX480,000.For Ministers, rates have been revised from UGX190,000 to UGX475,000, while State Ministers’ rates have increased to UGX470,000 from UGX185,000, while RDCs will rise from UGX165,000 to UGX250,000.Within the Judiciary, the Chief Justice’s allowance has increased from UGX195,000 to UGX480,000, while the Deputy Chief Justice is now earning UGX475,000 from UGX190,000, while the Principal Judge will now earn UGX470,000 up from UGX185,000.The rates for Justices of the Supreme Court have been raised to UGX400,000 from UGX180,000, while Justices of the Court of Appeal will earn UGX350,000 from UGX175,000, and High Court Judges UGX300,000 per night from UGX170,000.Local government leaders, the Inspector General of Government, Auditor General, Inspector General of Police, Commissioner General of Prisons, medical consultants, directors and ambassadors are among those to benefit.The revision also covers international travel, where the Vice President’s per diem has been increased from $710 to $920, while the Prime Minister’s per diem has risen from $670 to $900, and that of Ministers and State Ministers to $850 and $820 respectively, up from $620 and $580.The post Gov’t Defends Doubling Public Servants’ Allowances Amid High Cost of Living appeared first on Business Focus.