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After it was not included in the Financial Year 2022/2023 budget, legislators have committed to budgeting for a contingency account in the next budget cycle.
The Vice-Chairperson, Hon. Ignatius Wakauyu reported that even though the budget proposal of Shs48.1 trillion included these funds, it was removed in the final stages of budget processing.
Wamakuyu was responding on a question raised by Hon. John Baptist Nambeshe, concerning contingency funding.
He claimed that the minister had suggested reducing it from Shs223.9 billion down to Shs62.068 trillion for debt servicing, but it was later removed completely.
“Given the constrained resource envelope and the statutory obligations to prioritise servicing of public debt, the committee established that it was prudent to provide that debt service shortfall,” he said.
Wamakuyu advised Wamakuyu that the future finance ministry should adhere to the statutory obligation of section 26 of 2015’s Public Finance Management Act as amended and allocate money to the contingency fund.
Muhammad Muwanga Kivumbi (Butambala County MP), who represented the Chief Opinion Whip, stated that the contingency funds are a statutory requirement. All budgets must have one.
“During floods we need a contingency fund, and the best way for us to avoid supplementary budgets, we need to consistently provide for a contingency fund,” he said.
He said both the budget committee and the ministry should be held responsible for the fact that the budget committee didn’t follow and the ministry didn’t allocate funds.
The Deputy Speaker stated that the Budget Committee was not to be blamed since the budget was approved by the whole House. However, he stated that the experience should be used as a learning opportunity for the next budget.
“It is an eye-opener, and what I loved about this is that we can police ourselves to ensure that we address such constitutional requirements. So, in the next budget, please let us ensure that we comply with the law,” he said.
Distributed by APO Group for Parliament of the Republic of Uganda
APO issued this Press Release. APO has issued this Press Release. The content has not been reviewed by African Business’ editorial team. The content of this announcement is solely at the issuer’s responsibility.
Source: african.business
