Parliament 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.

The rollout of at least 20 million doses of anti-tick vaccines requires additional funding of Shs60 billion under the National Agricultural Research Organisation (NARO), that is also seeking an additional Shs10 billion to produce and distribute aflatoxin mitigation products.

“The supplementary will enable NARO to roll out the anti-tick vaccine by June 2025 after which the facility will be self-sustainable. The aflatoxin mitigation products are meant to uplift the standard of Ugandan products on the international market,” said Kateshumbwa.

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..

Ssemujju Nganda alluded to a report of the Auditor General which observed that government failed to conduct adequate due diligence on the agreements and the overall project, which he said raised doubts on the validity of the payments relative to the work completed.

“There is significant risk of financial loss for Ugandans if additional funding is allocated to the project. It is recommended that the project be halted until a special audit report is completed and Parliament can deliberate on the findings,” Ssemujju Nganda said.

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.

Musasizi, said the supplementary request for the Umeme loan will be managed through borrowing from the domestic market (Stanbic Bank).

The Speaker Anita Among guided that the approval of the supplementary request does not affect the loan request before the committee.