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Busia Municipality MP, Hon. Geofrey Macho (L) engaging Hon. Paul Omara, the MP for Otuke County prior to the start of the Wednesday session
Parliament has passed a motion that if approved, will see funds reallocated to ministries from agencies affected by the Rationalisation of Government Agencies and Public Expenditure (RAPEX) in a bid to ensure continuity of service.
The motion was presented by Hon. Henry Musasizi, the Minister of State for Finance, Planning and Economic Development (General Duties) during the plenary sitting chaired by the Deputy Speaker, Thomas Tayebwa, on Wednesday, 05 February 2025.
Musasizi moved the motion in accordance to Section 19 of the Public Finance Management Act which stipulates that Parliament may by resolution authorise the minister to reallocate funds from a vote to another where the functions are transferred to that other vote.
On 22 February, 2021 government adopted a policy to rationalise government agencies which move was stamped by Parliament in July 2024 with the passing of various Bills to implement the RAPEX.
The rationalisation aims at relieving government of the financial drain on its resources and the burden of duplication, wasteful administration and expenditure; consequently, providing efficient and effective service delivery.
However, a Budget Committee report presented by Hon. Catheline Atwakiire, the District Woman MP for Kabale, on behalf of the chairperson, observed that the motion for reallocation of funds was accompanied by revised work plans of the affected agencies yet no revised annual procurement plans, recruitment plans, cash flow, projections and revised asset register for both the receiving institutions and transferring institutions were presented to Parliament as part of the motion.
“Without this information, effective implementation of the budget for the affected
institutions may be constrained, since the secretary to Treasury and Accountant General can only release funds based on the annual cash flow plan,” she said.
The committee also observed that the projected savings of Shs430.599 billion as per the Certificate of Financial Implication will most certainly not be fully realised due to unforeseen costs like enhanced salaries for staff who have been transferred or recruited from a lower paying institution to a higher paying institution.
Further, the committee noted that no budget releases have been made to agencies such as the Civil Registration Services Department, the Uganda National Meteorological Authority, the National Population Council and National Physical Planning Board.
Similarly, a minority report presented by Hon. Ibrahim Ssemujju (FDC, Kira Municipality) criticised government for implementing the RAPEX policy in a disorganised manner.
He elaborated that several services previously provided by some closed agencies remain unassigned.
“Some of the agencies used to collect fees and closing them is a double loss for the country. Not only are essential services not being provided, the government is also losing out on crucial revenue,” he said and urged the minister to table procurement and recruitment plans for the attention of a sectoral committee for scrutiny.
Ssemujju also queried why the minister considered budget reallocation for only 13 agencies, yet Parliament rationalised over 20 agencies. “Accepting to process 13 means that you will be asked to process others in a piece manner,” he noted.
Legislators rallied the minister to introduce a supplementary budget to cover the budget shortfalls, arguing that reallocating funds not provided for in the appropriation Act is irregular.
Hon. Jonathan Odur (UPC, Erute County South) emphasised that the minister cannot reallocate money that was not budgeted for but instead advised the House to only reallocate what was appropriated.
“Let us confine ourselves to money already voted. Are we going to resupply? the minister needs to come out clearly,” he argued.
Hon. Rose Obiga, the District Woman Representative for Terego, decried the manner in which the staff from rationalised agencies have been treated, saying that some were not paid and their children are out of school.
Following a 10-minute suspension of the House to allow for further consultation by a select group of legislators on a way forward on the motion, it was resolved to adopt the motion ahead of the actual reallocation in line with the Public Finance Management Act at the next sitting of the House.
Source:Parliament of Uganda