PFM Reforms Timeline
This timeline highlights Uganda’s efforts to establish a robust and transparent financial management system, reflecting a commitment to fiscal responsibility, efficiency, and alignment with sustainable development initiatives.
1986
Economic Recovery Program (ERP)
Early Reforms and Fiscal Discipline Initiatives
- 1986: The National Resistance Movement (NRM) takes power, focusing on stabilizing the economy and restructuring the public sector to address Uganda's post-conflict economic challenges.
- 1987: Introduction of the Economic Recovery Program (ERP) supported by the World Bank and IMF, which aimed to restore fiscal discipline and reduce inflation.
- 1988: Government introduces the Public Finance Act, establishing legal foundations for public financial management and budget control.
1991-2000
The Civil Service Reform Program begins
Structural Adjustment and Institutional Strengthening
- 1992: The Civil Service Reform Program begins, aiming to enhance efficiency and accountability in the public sector.
- 1995: Uganda adopts a new Constitution emphasizing decentralization and accountability in government spending and services.
- 1997: The Poverty Eradication Action Plan (PEAP) is launched as a strategy to guide budgeting toward poverty reduction, initiating results-based management.
- 1998: Implementation of the Medium-Term Expenditure Framework (MTEF) to link policy priorities with resource allocations over a multi-year period.
- 1999: Enactment of the Budget Act, promoting parliamentary oversight and transparency in budgeting.
2001-2010
Budget classification systems & financial management standards
Introduction of Key Financial Management Systems and Tools
- 2001: Public Expenditure Management reforms introduce budget classification systems and financial management standards.
- 2003: The Public Finance and Accountability Act is passed, consolidating laws on public finances, enhancing accountability, and ensuring efficient fund utilization.
- 2004: Government initiates the Integrated Financial Management System (IFMS) to modernize budgeting, accounting, and reporting for real-time data on financial transactions.
- 2006: Fiscal Decentralization Strategy (FDS) is introduced to empower local governments with fiscal responsibilities, enhancing resource allocations at local levels.
- 2008: The Local Government Financial Management Reform Programme strengthens financial management at the local government level.
2011-2020
Introductionn of the Treasury Single Account (TSA)
Fiscal Responsibility, Transparency, and Monitoring Enhancements
- 2011: The Ministry of Finance, Planning, and Economic Development (MoFPED) introduces the Treasury Single Account (TSA) to streamline cash management and improve fund control.
- 2013: The Public Finance Management Act (PFMA) of 2015 is drafted (enacted in 2015), a significant milestone establishing stronger oversight, fiscal responsibility, and budget discipline frameworks.
- 2015: Public Finance Management Act (PFMA) of 2015 is enacted, focusing on budget discipline, transparent management of public resources, and adherence to fiscal rules.
- 2016: Uganda adopts the Program-Based Budgeting (PBB) approach to link budgeting with results, focusing on policy objectives and outcomes.
- 2018: The National Budget Framework Paper introduces gender and equity responsiveness, ensuring budget allocations consider diverse societal needs.
- 2019: MoFPED enhances the IFMS, integrating performance tracking to monitor budget implementation across sectors.
2021-2024
Introduction of the Budget Transparency Initiative
Digital Transformation and Sustainable Development Focus
- 2021: Introduction of the Budget Transparency Initiative, including citizen engagement platforms to foster public participation in budget processes.
- 2022: Implementation of the E-Government Procurement (e-GP) system to streamline and automate procurement processes, reducing corruption and enhancing efficiency.
- 2023: Uganda aligns PFM reforms with the Sustainable Development Goals (SDGs), integrating green budgeting principles to promote sustainable financial practices.
- 2024: Continued updates to the IFMS and PFM systems to ensure alignment with international standards, improving data accuracy and transparency in financial reporting.
Ongoing Reforms and Future Goals
- Ongoing: Enhancements to fiscal decentralization and public accountability mechanisms are in progress, aligning PFM systems with global standards.
- Future Goals: Continued focus on digital transformation, transparency, sustainable budgeting, and accountability reforms to meet Uganda’s Vision 2040 goals.