Government Enforces 15% Cap on Project Cost Variations, Warns Accounting Officers of Personal Liability

A new Treasury directive limits cost variations on public projects to 15 percent from feasibility to procurement stage, tightening controls on design changes and placing personal accountability on Accounting Officers for breaches.

The Government of Uganda has issued a directive aimed at curbing escalating project costs, warning Accounting Officers to strictly adhere to approved budgets and project scopes set at the feasibility stage.

In a circular released by Ramathan Ggoobi, the Permanent Secretary to the Treasury (PSST), all Accounting Officers across government have been instructed to ensure that any variation between the estimated project cost at feasibility stage and at procurement initiation does not exceed 15 percent.

Dr Ggoobi emphasised that cost deviations will only be tolerated under exceptional circumstances and must be fully justified in line with the Public Procurement and Disposal of Public Assets Act.

“Accounting Officers will be held personally accountable for any breach of these instructions,” he warned, signalling a stricter enforcement regime around public expenditure.

The directive also imposes tighter controls on project design changes, which have frequently been cited as a major driver of cost overruns.

Under the new guidance, design reviews will only be permitted where there is a clear, verifiable and justifiable need.

The move underscores a broader government effort to eliminate waste, enforce budgetary discipline and ensure value for money in public investments, an area that has long attracted scrutiny in Uganda’s public procurement processes.