Overview:
The appeal was made by Peter Watuwa, a researcher with ACODE during a consultative meeting with Shadow Finance Minister Muwanga Kivumbi (Butambala County) at Parliament on the proposal to amend the Public Finance Management Act 2015.
The Advocates Coalition for Development and Environment (ACODE) has asked Parliament to ensure that the powers given to the Minister of Finance in procuring loans are curbed, due to the fiscal abuse being exhibited during the borrowing of public funds.
The appeal was made by Peter Watuwa, a researcher with ACODE during a consultative meeting with Shadow Finance Minister Muwanga Kivumbi (Butambala County) at Parliament on the proposal to amend the Public Finance Management Act 2015.
“We feel there is a lot to be done on curbing the Minister’s powers to borrow. We feel that the PFMA gives the Minister a lot of power, and yet the Parliamentary at the end of the borrowing. The Minister goes into negotiations, gets these deals or whatever it is, then, pre-empts Parliament to approve that which he has negotiated. We feel that is tending towards fiscal indiscipline,” said Watuwa.
In May 2023, the Ministry of Finance came under Parliamentary scrutiny when MPs unearthed a plot by government to borrow Euro500M (Shs2.027 Trillion) from Amarog Capital Ltd, that was later discovered to be a private money lender operating in Kenya’s agriculture sector.
MPs described the move by Government to borrow from a money lender to finance the national budget as offensive and demeaning to Uganda’s integrity.
Parliament last approved Shs3.5 trillion supplementary funding to cater for various government sectors including State House, President’s Office and the Ministry of Health.
The funds, under the Supplementary Expenditure Schedule No.1 for the Financial Year 2023/2024, were approved during the House sitting on Wednesday,
6 December 2023.
The Minister of State for Finance (General Duties), Hon. Henry Musasizi, who presented the motion for resolution of Parliament to approve the expenditure, said Shs1.9 trillion required prior Parliamentary approval while Shs1.5 trillion was within the 3 percent legal limit.
He said that the drivers of the supplementary and statutory expenditure include payment for domestic obligations to the Central Bank of Shs2 trillion.
He said that by June 2023, government owed Bank of Uganda Shs4.8 trillion which had accumulated from 2019/2020 financial year.