Uganda: Mdas Seek Parliament Approval for Supplementary Budgets

15 January 2025

The drivers for these requests are familiar: shortfalls in wages and salaries, urgent government policies, international commitments, and funding for ongoing projects.

The scramble for supplementary budget allocations has begun as various government ministries, departments, and agencies (MDAs) petition Parliament for additional funding in the 2024/2025 financial year.

The Budget Committee of Parliament is reviewing requests nearing the Shs1 trillion mark in this first schedule of supplementaries.

The committee has been meeting with over 18 MDAs individually, as each agency defends its financial demands.

The drivers for these requests are familiar: shortfalls in wages and salaries, urgent government policies, international commitments, and funding for ongoing projects.

However, during the deliberations, gaps in budget implementation surfaced, raising concerns among legislators.

"Critical issues like health and education were underfunded in the budget cuts, and now they're back here seeking funding," a Member of Parliament observed.

State Minister for Finance, Henry Musasizi, admitted to errors in previous allocations.

"It was an error because of budget cuts, but we realized these were critical votes, so they are being reconsidered," he explained.

Budget Committee chairperson Patrick Obey noted a systemic issue with underfunding.

"We are failing most of these entities. They plan very well but are not adequately supported," he said.

Another pressing issue discussed was the recycling of arrears across MDAs. For example, the National Water and Sewerage Corporation (NWSC) revealed that government hospitals and prisons owe over Shs97 billion in unpaid arrears.

The NWSC Deputy Managing Director expressed frustration: "When we threaten to cut them off, we receive calls to hold off."

The Budget Committee urged the Ministry of Finance to prioritize MDAs that generate non-tax revenue, proposing a Shs400 billion revenue target for this financial year.

Educational institutions are among the entities seeking funds to boost their non-tax revenue generation.

As deliberations continue, the committee has called for a balanced approach to address both critical arrears and funding for revenue-generating agencies.

The decision on the supplementary budgets will shape the execution of government priorities for the rest of the financial year.

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