The East African Legislative Assembly (EALA) has unanimously approved a supplementary budget of over $11.9 million for the East African Community (EAC) in the financial year 2022/2023.
The additional funds will support crucial regional integration activities, according to officials familiar with the matter.
During a plenary session held on June 15 in Arusha, Tanzania, EALA passed the East African Community Supplementary Appropriation Bill, 2023, with amendments.
Ezéchiel Nibigira, Chairperson of the EAC Council of Ministers, explained that the purpose of the additional funding is to assist the Community's organs and institutions in meeting their increased expenditure requirements.
The session was marked by a heated debate due to the EAC Council of Ministers proposing a supplementary budget that exceeded the recommended rate.
Presenting the report of the committee on the EAC supplementary budget for the fiscal year ending June 30, 2023, Kennedy Ayason Mukulia, Chairperson of EALA's Committee on General Purpose, pointed out that the normal recommended rate for a supplementary budget is 5% of the approved budget for a given fiscal year.
However, the approved supplementary funding, along with the proposed supplementary budget from the Council, amounts to 22% of the $91.5 million budget for 2022/2023, which the Assembly approved in June last year.
Mukulia emphasized that such a significant deviation from the recommended rate indicates gaps in planning, as supplementary budgets are typically reserved for urgent projects or unforeseen circumstances.
While the EAC Council of Ministers had initially requested over $16.4 million in supplementary funding for the current fiscal year, the Assembly approved slightly over $11.9 million.
Mukulia clarified that the approved additional funding would be allocated to urgent activities, including mandatory meetings, policy-making tasks, community tours by the Assembly, customs-related integration initiatives, and basic activities aimed at benefiting East Africans.
MP Fatuma Ndangiza pointed out the need for additional funding, highlighting the challenges faced due to the integration of new EAC member countries. She cited issues such as airfare, insurance, and salaries, which resulted in hindered activities. Ndangiza requested a refund of the funds in the supplementary budget to address these concerns.
MP James Kakooza from Uganda expressed concerns about the consistent reliance on supplementary budgets for capital development expenditure, such as constructing buildings and purchasing vehicles and offices. He argued that while supplementary budgets are legally permissible, they violate the principles of prudent budgeting within the Community.
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Allocations
Out of the aforementioned supplementary funding, $2.96 million has been allocated to cover the expenses of the EAC Secretariat for the 2022/2023 financial year.
The EAC Court of Justice will receive over $287,000 for the same period, while over $3 million will be utilized for EALA activities.
Other allocations include over $1.1 million for the Lake Victoria Basin Commission, $2.8 million for the InterUniversity Council for East Africa, $1 million for Lake Victoria Fisheries, and $134,000 for the EAC Science and Technology Commission.
Additionally, the financing includes over $165,700 for the EAC Kiswahili Commission, $134,400 for the EAC Health Research Commission, and $125,000 for the EAC Competition Authority.
