On Monday, January 22, 2024, members of Parliament convened for a plenary session, discussing a matter of growing concern raised by Civil Society Organisations (CSOs). The CSOs, led by the Civil Society Budget Advocacy Group (CSBAG), urged Parliament to exercise its authority in curbing the government’s increasing reliance on supplementary budgets.
Mr Steven Alor, an Economist at CSBAG, asserted that a significant portion of funds obtained through supplementary budgets deviated from their intended purpose, violating the stipulations of the Public Finance Management Act (PFMA), 2015.
According to Alor, the PFMA, 2015 permits the use of supplementary financing for absorbable, unavoidable, and unforeseeable expenses, provided they remain within the approved budget of that financial year. Alor revealed that from the recent supplementary budget of Shs3.5 trillion presented to Parliament on November 29, 2023, approximately Shs2 trillion was allocated to recurrent expenditure. This included addressing shortfalls in expenditure, notably teachers’ salaries.
Alor highlighted instances where large sums were allocated for projects that never materialised, such as Lubowa Hospital. He argued that such occurrences pointed towards an abuse of supplementary provisions, fiscal indiscipline, and inadequate planning practices within Ministries, Departments, and Agencies (MDAs).
To address these concerns, CSOs called upon lawmakers to introduce stringent legislation, incorporating amendments into the PFMA, 2015. The aim is to create barriers preventing the government from diverting funds acquired through supplementary budgets.
Vice-chairperson of the budget committee, Mr Remigio Achia, assured CSOs that their recommendations would be presented to the government. This engagement occurred towards the conclusion of the budget committee’s comprehensive assessment, considering reports from sectoral committees to shape the 2024/25 National Budget Framework Paper.
The committee is set to deliberate on various submissions in the coming week, determining the content to be included in the final report to be presented before Parliament. The outcome will contribute to shaping the ultimate structure of the 2024/25 National Budget.
