Parliament has sanctioned an additional funding request surpassing Shs4 trillion, aimed at clearing outstanding payments for road construction firms, bolstering security, and finalizing infrastructure necessary for hosting the 2027 African Cup of Nations (AFCON).
The request was presented under Supplementary Expenditure Schedule No.3 for the 2024/2025 fiscal year, with Shs1.1 trillion allocated under the three per cent threshold permitted by the Public Finance Management Act (PFMA), 2015, while Shs3.1 trillion necessitated prior parliamentary endorsement.
The Minister of Finance, Planning, and Economic Development (General Duties), Hon. Henry Musasizi, stated that this request aligns with Section 24 of the PFMA. The Act stipulates that any supplementary expenditure requiring extra resources beyond what Parliament initially sanctioned must not surpass three per cent of the total approved budget for the fiscal year without parliamentary consent.
“We obtained Cabinet’s approval to table before this House a supplementary budget totaling Shs3.1 trillion, which exceeds the three per cent statutory cap. This necessitates parliamentary authorization before the respective entities can utilize the funds,” Musasizi explained.
In a report presented by Hon. Dicksons Kateshumbwa on behalf of the Budget Committee, over Shs257 billion has been allocated for the completion of Hoima Stadium, initiation of Akii Bua Stadium’s construction, and the enhancement of facilities approved for AFCON hosting.
Additionally, at least 20 million doses of anti-tick vaccines require supplementary financing of Shs60 billion under the National Agricultural Research Organisation (NARO). The agency is also seeking an extra Shs10 billion for the production and distribution of aflatoxin mitigation solutions.
“The supplementary allocation will allow NARO to deploy the anti-tick vaccine by June 2025, after which the program will become self-sustaining. The aflatoxin mitigation products are intended to enhance the quality of Ugandan exports in global markets,” noted Kateshumbwa.
To facilitate the buyout of electricity distributor Umeme, the government requires over Shs725 billion. Moreover, an additional Shs60 billion has been designated for Inspire Africa to finalize certification and standards, secure working capital for purchasing coffee from farmers, and finance branding, marketing, and operational expenses for the coffee factory.
According to the minister, the supplementary budget will be sourced from the Petroleum Fund, local revenue, non-tax revenue, as well as internal and external borrowing.
However, a dissenting report presented by Kira Municipality MP, Hon. Ibrahim Ssemujju Nganda, raised concerns over the allocation of Shs298 billion towards debt servicing for Lubowa Hospital.
Ssemujju referred to an Auditor General’s report, which highlighted that the government had failed to conduct adequate due diligence on the agreements and the overall project, casting doubts on the validity of the payments relative to the completed work.
“There is a significant risk of financial loss for Ugandan taxpayers if additional resources are allocated to this project. It is recommended that further funding be halted until a specialized audit report is finalized and Parliament can deliberate on its findings,” Ssemujju argued.
He also questioned allocations of Shs115 billion for revamping Atiak Sugar Factory, Shs67 billion for a coffee value-addition park in Ntungamo District, and the financial requirements for the Umeme buyout.
“As legislators, your responsibility is to scrutinize every funding request through the lens of legality. Is it unforeseen? Is it unavoidable? Is it an emergency? That is your obligation on behalf of the citizens,” Ssemujju emphasized.
Hon. Denis Oguzu Lee (FDC, Maracha County) also expressed reservations regarding the supplementary funding for the Umeme buyout, pointing out that a loan request for the same purpose is still under review.
“Umeme has been recovering its operational costs through feed-in tariffs. Now, as their concession nears its end, they are demanding payment from Ugandans, yet this issue has not been conclusively resolved,” he remarked.
Hon. Robert Migadde, Deputy Chairperson of the Committee on National Economy, which is evaluating the loan request, disclosed that the Ministry of Energy and Mineral Development has not yet provided the necessary documentation for assessing the proposal.
“The Ministry of Energy was required to submit an Auditor General’s report detailing how they determined the US$190 million loan request, but the committee has not received it yet,” Migadde stated.
Musasizi clarified that the supplementary funding for the Umeme buyout will be secured through domestic borrowing from Stanbic Bank.
Speaker Anita Among assured the House that approving the supplementary request does not interfere with the ongoing review of the loan request by the committee.
