Uganda: Parliament's Budget Committee Rejects Controversial Shs7 Trillion Supplementary Budget Proposal

6 December 2023

The Parliament Budget Committee has found itself at odds over the supplementary budget proposed by Finance Minister Henry Musasizi, revealing a staggering increase from shs3.5 trillion to a shocking shs7 trillion.

Chairperson Patrick Isiagi Opolot emphasized the urgency of scrutinizing the critical item, slated for plenary approval on Wednesday.

However, the committee opted to handle only the original 3.5 trillion, sidelining the contentious 3.39 trillion marked for statutory obligations.

Minister Musasizi defended the request, breaking it down into two parts - 3% legal limit and prior parliamentary approval, adding a substantial 3.393 trillion for statutory revisions.

This move sparked a debate, with MPs accusing the minister of smuggling in new items, inflating the supplementary budget.

In response, Minister Musasizi clarified that the shs3.393 trillion aimed to settle domestic debt obligations to the Bank of Uganda (2 trillion), ICJ court rewards to DR Congo, and refunds to the World Bank, among other commitments.

However, the committee was perplexed by the minister's withdrawal of parts of the supplementary budget, including the puzzling shift of a 12 billion arrears item initially for the Association of Money Lenders, now redirected to the Uganda Consumers Association.

The committee questioned the justification for this alteration.

Musasizi admitted to errors in expenditure, citing shs1.5 trillion already spent, including 100 billion meant for Uganda Air Cargo erroneously allocated to the Ministry of Works and Transport, and shs188 billion mistakenly reflected under State House instead of the Ministry of Defence and Veteran Affairs.

As the parliamentary drama unfolds, concerns loom over the transparency of budget allocations and the meticulous handling of taxpayers' money.

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