House approves extra Shs4 trillion for 2024/2025 Budget
Parliament has approved a supplementary request of over Shs4 trillion that will provide outstanding certificates for road construction companies, security and completion of infrastructure for the hosting of the African Cup of Nations (AFCON) 2027.
The request came under the auspices of the Supplementary Expenditure Schedule No.3 for financial year 2024/2025 where Shs1.1 trillion was spent under the three per cent provided for under the Public Finance Management Act (PFMA), 2015 whereas Shs3.1 trillion needed prior approval of Parliament.
The Minister for Finance, Planning and Economic Development (General Duties), Hon. Henry Musasizi, said this is in line with Section 24 of the PFMA.
The Act provides that where the total supplementary expenditure that requires additional resources over and above what is approved by Parliament, it shall not exceed three per cent of the total approved budget for that financial year, without approval of Parliament.
“We sought and obtained approval from Cabinet to present to this House, the supplementary expenditure amounting to Shs3.1 trillion which is above the three per cent legal limit. It requires prior parliamentary authorisation before the funds are utilised by the respective votes,” said Musasizi.
In a report of the Budget Committee on the supplementary request presented by Hon. Dicksons Kateshumbwa, over Shs257 billion is earmarked for completion of Hoima Stadium, commencement of construction of Akii Bua Stadium and upgrade of facilities approved for hosting AFCON.
To finance the buyout of Umeme, government requires over Shs725 billion. An additional Shs60 billion is needed to fund Inspire Africa, for completion of standards and certifications, working capital to purchase coffee from farmers, branding and marketing of coffee as well as operational funds to run the factory.
According to the minister, the supplementary budget will be financed through the Petroleum Fund, local revenue, non-tax revenue, domestic and external borrowing.
A minority report presented by Kira Municipality MP, Hon. Ibrahim Ssemujju expressed reservations on additional funding of shs298 billion under debt servicing towards Lubowa Hospital..
He also queried funding worth Shs115 billion paid to re-operationalise Atiak Sugar factory, Shs67 billion for a coffee value addition park in Ntungamo District and the funds required for the Umeme buyout.
“Your duty as colleagues is to subject every single request to the law. Is it unforeseen, is it unavoidable, and is it an emergency? That is the duty you have on behalf of the country,” Ssemujju Nganda added.
Hon. Denis Oguzu Lee (FDC, Maracha County) expressed concern over the supplementary request for the Umeme buyout saying a loan request for the same, is still under consideration.
“Umeme has been recovering their costs through feed-in tariffs where they add their costs. Now they are demanding for money from Ugandans when their concession is about to expire, yet this matter has not been resolved to a logical conclusion,” he said.
The Deputy Chairperson of the Committee on National Economy which is considering the loan request, Hon. Robert Migadde said the Ministry of Energy and Mineral Development has not presented information required for scrutinising the loan request.
“Ministry of Energy was supposed to produce a report of the Auditor General on how they arrived at the US$190 million loan request, but it has not yet come back to the committee,” said Migadde.
The Speaker Anita Among guided that the approval of the supplementary request does not affect the loan request before the committee.
Source. Parliament
