MPs approve Shs1.2 trillion supplementary budget for agencies' transfer

Parliament has approved a supplementary budget exceeding Shs1.2 trillion to facilitate the transfer of funds from rationalised government agencies to receiving institutions.

The Supplementary Expenditure Schedule No.2 for the 2024/2025 financial year was presented by the Minister of State for Finance, Planning and Economic Development (General Duties), Henry Musasizi, on Thursday, February 6, 2025.

According to the allocations, the Ministry of Works will receive Shs934 billion for development expenditure and over Shs246 billion for recurrent expenditure.

“This is required to implement the revised structure and operationalise the functions of the Uganda National Roads Authority and Uganda Road Fund,” Musasizi said.

The Ministry of Agriculture has been allocated Shs32.7 billion for recurrent expenditure and Shs2.6 billion for development projects.

Musasizi explained that the funds would support projects under the Dairy Development Agency, National Agricultural Advisory Services, Cotton Development Organisation, and Uganda Coffee Development Agency.

Additionally, the Uganda Free Zones and Export Promotion Authority has received Shs2.3 billion for development, Shs859 million for statutory expenditure, covering contract gratuity and National Social Security Fund contributions for staff, and Shs8.8 billion for recurrent expenditure.

Other institutions that benefited from the supplementary budget include the National Planning Authority, National Identification Registration Authority, and Ministry of Water and Environment.

“Supplementary Expenditure Schedule No.2 will be funded using unreleased resources that had been appropriated to the rationalised votes,” Musasizi clarified.

To expedite the approval process, Parliament suspended Rule 153, allowing the supplementary request to pass without being committed to the Budget Committee. Government Chief Whip, Hamson Obua, moved the motion.

“The Committee of this House has equally considered a motion of reallocation. In my humble opinion, there would be no need to go through the due processes under Rule 153,” Obua argued.

However, a section of lawmakers opposed the motion. Jonathan Odur (UPC, Erute County South) insisted that suspending Rule 153 is unconstitutional.

“Rule 153 operationalises Article 156 of the Constitution; to the extent that it reproduces the provision of Article 156. By suspending this rule, the mover is also attempting to suspend a constitutional provision,” he asserted.

Denis Oguzi Lee (FDC, Maracha County) echoed similar sentiments, stating that the Constitution dictates the process for budget and supplementary expenditure approvals.

“We cannot override what the Constitution has prescribed,” he remarked.

Deputy Speaker, Thomas Tayebwa, defended the decision, arguing that the funds in question were already available and that the approval process was merely finalising the rationalisation of government agencies.

“This is money we had already appropriated; the source is available. Indecision and delays in the House do not help with planning,” Tayebwa stated.

Parliament had previously passed several Bills to merge government agencies in line with the government’s Rationalisation of Government Agencies and Public Expenditures (RAPEX) policy.