The National Planning Authority (NPA) has beseeched the finance committee of Parliament to discourage the use of supplementary budgets, as it undermines budget credibility.
The NPA team led by the Executive Director, Dr Joseph Muvawala, on Wednesday, 23 November 2022 appeared before the committee chaired by Hon. Keefa Kiwanuka, to present a response on the budget process and execution issues raised by the committee.
Over the past years, government has been asking for supplementary allocations straightaway after passing the national budget, raising concern from Parliament.
Muvawala told the committee that the frequent use of supplementary requests which are not matched by revenue collections is problematic and said it was an area that needed transparency and openness.
He added that although the Public Finance Management Act under section 25 (1) allows for a supplementary expenditure not exceeding three per cent of the total approved budget for that financial year, without the approval of Parliament, it should not be habitual.
The Otuke County MP, Hon. Paul Omara, questioned if the NPA was involved in the mid-term review where government utilised the three per cent.
“The three per cent should be unforeseeable, and unavoidable. Where these issues invested in this supplementary unavoidable because now you are in a jigsaw framework with finance ministry?” he asked.
Muvawala further informed the MPs that the NPA would make an assessment of the loans government has acquired to relate their performance.
Distributed by APO Group on behalf of Parliament of the Republic of Uganda.