Uganda: Shs1.2 trillion approved to facilitate merged agencies

The Ministry of Agriculture will receive Shs32.7 billion for recurrent expenditure and Shs2.6 billion for development.

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

The supplementary expenditure schedule No. 2 for the financial year 2024/2025 was presented by the Minister of State for Finance, Planning, and Economic Development (General Duties), Hon. Henry Musasizi on Thursday, 06 February 2025.

According to the allocations, the Ministry of Works will take Shs934 billion under development expenditure and over Shs246 billion under 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 will receive Shs32.7 billion for recurrent expenditure and Shs2.6 billion for development. Musasizi said that the funds will implement projects under the Dairy Development Agency, National Agricultural Advisory Services, Cotton Development Organisation and Uganda Coffee Development Agency.

On the other hand, the Uganda Free Zones and Export Promotion Authority has been allocated Shs2.3 billion for development, Shs859 million under statutory to cater for contract gratuity and National Social Security Fund for staff as well as Shs8.8 billion for recurrent expenditure.

The National Planning Authority, National Identification Registration Authority, and Ministry of Water and Environment equally benefited from the Shs1.2 trillion supplementary.  “Supplementary Expenditure Schedule No.2 will be funded using unreleased resources that had been appropriated to the rationalised votes,” Musasizi said.

The House suspended Rule 153 to allow the supplementary request to be approved without its estimates being committed to the Budget Committee. This followed a motion moved by the Government Chief Whip, Hon. Hamson Obua.  “The Committee of this House has equally considered a motion of reallocation. In my humble opinion, there would be no need going through the due processes under Rule 153,” Obua said.

A section of lawmakers however, opposed the motion. Hon. Jonathan Odur (UPC, Erute County South) said suspending Rule 153 is unconstitutional. “Rule 153 operationalises Article 156 of the Constitution; to that extend that it reproduces the provision of Article 156. By the move to suspend this rule, the mover also purports to suspend the provision of the Constitution,” he said.

Hon. Denis Oguzi Lee (FDC, Maracha County) said that the Constitution dictates the process through which budget and supplementary expenditures are approved. “We cannot rise above what the Constitution has dictated,” he said.

Deputy Speaker, Thomas Tayebwa guided that the funds in question are already available, saying that approval of the supplementary request is aimed at completing the process of rationalisation of government agencies.  “This is money we had already appropriated; the source is available. I think indecision and delay on the part of the House does not help in terms of planning,” Tayebwa said.

Parliament passed several Bills, merging several government agencies following the government’s policy on Rationalisation of Government Agencies and Public Expenditures (RAPEX).