The Ministry of Finance, Planning, and Economic Development has allocated over Shs1.2 trillion to ministries, departments, and agencies taking over the responsibilities of merged institutions.
In a letter dated 26 February 2025 addressed to accounting officers, the funds are intended to support the implementation of new organizational structures, updated mandates, and additional functions within these ministries.
While presiding over the House on Tuesday, 04 March 2025, Deputy Speaker Thomas Tayebwa read out a letter from the Finance Ministry detailing the financial breakdown. Shs296 billion has been earmarked for recurrent costs, Shs940 billion for development expenses, and Shs7 billion for statutory commitments.
“The purpose of this letter is to share Parliament’s resolution and request you to initiate the supplementary allocation in the programme budgeting system while submitting updated work plans,” the letter states in part.
Tayebwa emphasized that the sources of funds and budgetary allocations were well-defined, confirming that Parliament had approved the transfer of funds from rationalized agencies to the respective ministries, departments, and agencies (MDAs).
“What is crucial now is ensuring that the ministries and agencies take responsibility for executing their plans using the allocated funds,” Tayebwa added.
In his address to Parliament, Minister for Public Service Hon. Muruli Mukasa disclosed that Shs29.6 billion had been allocated to the relevant ministries in the first quarter of the 2024/25 financial year to cover gratuity, pensions, and severance packages for affected employees.
He noted that delays in releasing the funds had hindered the seamless integration of functions from the rationalized agencies into the respective ministries, attributing the setback to the Finance Ministry’s process of reallocating and transferring funds to receiving institutions.
“Several institutions that have completed staff validation do not have the necessary wage allocations to pay salaries for retained employees. The Ministry of Finance must expedite the transfer of wage funds to the recipient MDAs,” said Muruli Mukasa.
Before the Deputy Speaker presented the Finance Ministry’s letter, Members of Parliament expressed concerns over delays in disbursing funds for terminal benefits.
“The Finance Minister assured us that funds were available for the rationalization process approved by Parliament. However, pension payments are being withheld, which is affecting the welfare of retired staff,” stated Hon. Denis Oguzu Lee (FDC, Maracha County).
Hon. Sarah Opendi (NRM, Tororo District Woman Representative) questioned the validity of the financial implication certificates issued by the Finance Ministry.
“The Minister for Public Service has indicated that most institutions have not yet completed calculations for pension, gratuity, and severance payments. How, then, were financial implication certificates issued without these computations?” Opendi inquired.
MPs also raised concerns about stalled projects previously managed by agencies whose functions were transferred to line ministries.
Hon. Olive Katwesigye (Buhweju District Woman Representative) and Hon. Patrick Aeku (NRM, Soroti County) pointed out that projects under the Rural Electrification Agency (REA) came to a standstill after the rationalization process.
Additionally, Hon. Nathan Byanyima (NRM, Bukanga North County) and Hon. Zumura Maneno (NRM, Obongi District Woman Representative) voiced worries about halted road construction and ferry services, which they said were negatively impacting the public.
