Govt’s Shs1.1t Supplementary Budget passed two months to next financial year
During plenary on Tuesday, 30 April 2023, the Deputy Chairperson of the Budget Committee, Hon. Achia Remigio presented the committee’s report approving the supplementary expenditure of Shs 1.1 trillion for FY2023/2024.
Of this amount, more than 70% will go towards recurrent expenses, with the remaining portion going towards national development.
The supplementary budget’s top funding priorities are Shs 18.6 billion for classified state house expenses, Shs 3 billion to support this year’s Martyrs Day of which Shs1 billion will go to Nebbi Diocese who will host this year’s celebrations, Shs 13.6 billion for Kampala City Council Authority to cover the pay for temporary workers cleaning the city, and Shs 9 billion authorized to reimburse Uganda police property damaged by the Kampala flyover project.
Following a heated debate, Parliament went ahead to approve a controversial shs 578 billion government bailout for Dei Bio Pharma Limited, a private pharmaceutical and vaccine manufacturing firm run by businessman Mathias Magoola.
Three members of the House Budget Committee including Ibrahim Ssemujju Nganda (Kiira Municipality MP and Shadow Minister of Finance, Yusuf Nsibambi (Mawokota South), Mathias Mpuuga (Nyendo-Mukungwe), were against their committee’s proposal for parliament to approve the supplementary budget without changes.
Through a minority report opposing the allocation of Shs 18.6 billion in classified expenditure to the State House and Shs 578 billion to Dei Bio Pharma Ltd which was submitted by Hon. Ssemujju Nganda, the group of legislators argued that the request for awarding Dei Bio Pharma limited with funds did not comply with the law.
“We oppose donating Shs578 billion to Mr Mathias Magola (DEI Pharma Ltd). All the activities and items the government is seeking to finance through the second supplementary do not meet the requirements of the Public Finance Management Act,” Semujju noted.
He added, pointing out that the government has taken Shs666 billion out of the debt servicing vote, saying that money meant for Mr. Magola of Dei Bio Pharma Ltd. is being taken from debt service.
“I actually now think this is not Magoola. Someone who can make us remove money from debt servicing in order for us to pay his debts. It is not this Magoola. It is another Magoola hiding under this Magoola,” Ssemujju said.
Hon. Henry Musasizi, Minister of State for Finance (General Duties), said the company as it stands it’s “sick” and they do not want it to “die”.
He continued by saying that that equity will be discussed after the valuation is finished.
Speaker Anita Among emphasized that although there’s a pledge regarding valuation, it’s important for the government to undertake this task. She directed the Budget Committee to oversee and ensure the completion of the valuation process. Furthermore, she insisted on obtaining a comprehensive report detailing the valuation of assets and finances.
Other supplementary expenditures are; shs 9 billion will go to the office of the prime minister to facilitate the pending activities under the Development Response to Displacement Impact Project (DRDIP) which is set to close in June 2024, Shs 9billion to Ministry of Agriculture Cluster Development Project (ACDP), Shs 37billion to the ministry of finance, purposely for the implementation of the outstanding Competitiveness and Enterprise Development Project (CEDP) activities, a sum of shs 43billion will go to various local governments to enable them meet their contractual obligations while Shs 12 billion was approved to facilitate Farm Income Enhancement and Forest Conservation (FIEFOC) under the Ministry of Water and Environment.
