Uganda: Local Governments Body Welcomes Proposed Amendments to Public Finance Management Act

8 December 2023
Nile Post (Kampala)
By Sam Ibanda Mugabi

The Uganda Local Government Association (ULGA) has expressed its support for the proposed amendments to the Public Finance Management Act, stating that it will enhance government planning, budgeting, and fiscal discipline in the management of public resources.

Speaking before Parliament on Thursday, Richard Rwabuhinga, the Chairperson of ULGA, emphasized the importance of addressing conflicts between District Public Accounts Committees and the parliamentary committees.

''The bill should address the conflict between district public accounts committees and that of Parliament,''Rwabuhinga said.

Muhammad Muwanga Kivumbi, the initiator of the private member's bill known as the Public Finance Management Amendment Bill 2023, engaged with key stakeholders to gather their input on the proposed legislation.

Kivumbi outlined the bill's objectives, highlighting its intention to establish the source of funding for supplementary budgets and define the 3% of the budget outlined in the constitution with limitations in the Public Finance Management Act.

ULGA's President, Richard Rwabuhinga, reiterated the association's agreement to amend sections 25 and 26 of the Act, emphasizing the positive impact on government planning and fiscal discipline.

However, ULGA expressed opposition to the secretary to the treasury appointing Accounting officers, contending that it contravenes section 3 (b) of the Public Finance Management Act.

Rwabuhinga, also the district chairperson for Kabarole district, pointed out the lack of a clear framework in the current Act to guide the Ministry of Finance in revoting funds remitted by local governments at the end of the financial year.

In addition to their stance on appointments, ULGA proposed earmarking a separate vote for local governments under the contingency funds to facilitate the execution of mandates during local calamities.

They also called for clarification on the roles of district public accounts committees and parliament accounts committees of local government.

The association underscored the need for aggregating all local revenue to the consolidated funds for better service delivery, emphasizing the potential impact on timely and efficient service delivery.

As discussions on the proposed amendments unfold, ULGA's support adds a crucial voice to the ongoing efforts to enhance financial management and governance in Uganda.

Read the original article on Nile Post.

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