Kampala, Uganda – Parliament has been called back from recess to reconsider the Appropriation Bill, 2024, which was rejected by President Yoweri Museveni. The decision to reconvene Parliament was communicated by Clerk to Parliament Adolf Mwesige, stating that the House will discuss the Bill on Tuesday, July 2.
Parliament passed the Appropriation Bill on May 16, authorizing the government to spend UGX 72.1 trillion for the financial year 2024/2025. However, the President returned the Bill to Parliament for reconsideration in accordance with Article 91 (3) (b) and (c) of the Constitution. While the official letter did not specify reasons for the rejection, it has been reported that President Museveni raised concerns about the reallocation of UGX 750 billion by Parliament’s Budget Committee without executive approval.
Speaker Anita Among had sent MPs on recess on June 19 after designating new committee leaders and members, with the intention of allowing them to bond with their constituents. However, the pressing issue of the Appropriation Bill’s rejection has necessitated an early return.
Finance Minister Matia Kasaija confirmed the President’s decision but declined to provide detailed comments, citing confidentiality of Cabinet discussions. Kasaija did acknowledge that the President explicitly stated his refusal to assent to the Bill until issues related to the reallocation of funds are addressed.
The Appropriation Bill, also known as a Supply Bill or Spending Bill, authorizes the expenditure of government funds. The controversy centers around Parliament’s Budget Committee reallocating UGX 750 billion from areas deemed non-essential to those considered urgent priorities without executive approval. This action has led to a standoff, with the President insisting on a review of these reallocations.
During a Cabinet meeting, President Museveni emphasized that MPs had tampered with the budget, reallocating funds without proper authorization. This has raised concerns about the commencement of the budget expenditure scheduled for July 1, pending the resolution of this impasse.
Experts suggest that Article 154 of the Constitution provides the President with the authority to order budget expenditure without the Appropriation Bill if necessary. However, the President’s preference is for Parliament to address the reallocation issue and resubmit the Bill.
The initial passage of the Appropriation Bill on May 16 marked a significant increase from the initial budget estimates of UGX 58.34 trillion, reflecting an overall budget of UGX 72.136 trillion. The national budget, presented by Minister Kasaija, included allocations for various sectors, but the reallocation by Parliament’s Budget Committee has sparked controversy.
Some MPs argue that under the law, Parliament is allowed to reallocate funds within and across sectors to address priorities. However, there are concerns that such reallocations can lead to abuses and potential corruption, as funds are sometimes redirected to projects favored by influential MPs.
The Appropriation Bill 2024 encompasses the government’s budget estimates for the fiscal year starting July 1, 2024, and ending June 30, 2025. The Constitution mandates that the President must assent to a Bill within 30 days of its presentation or return it to Parliament for reconsideration. If the President declines to assent twice, the Bill can become law with a two-thirds majority vote in Parliament.
