136TH EDITION

CSBAG

Govt under pressure to withdraw

Management Amendment Bill

Public

Finance

Government is under Pressure from Parliament

to withdraw the Public Finance Management
(Amendment) Bill, 2015 which MPs say if
amended would usurp powers of Parliament on
checks and balances. Considering the discussion
in Parliament yesterday to consider the Bill, MPs
rejected the Ministry of Finance position on the
Bill
We should give a chance to this law to be operationalized, we cannot at any
one time allow the Government to borrow money without the approval of
Parliament, I beg to move that this Bill is withdrawn, said Cecilia Ogwal the
Opposition Chief Whip.
In its current form, the Public Finance Management Act 2015, provides strong
checks and balances against wasteful government expenditure and debt
financing.

I was recently faced with a very embarrassing situation

because I could not get sufficient money to pay wages, salaries
and all sorts of things for quarter one of the financial year
2015/16. So we sent a requisition to Bank of Uganda which said
-No your account is dry,

Hon. Kasaija Minister Finance, Planning and Economic Development

told yesterday 10th November 2015 informed Parliament which was
recalled from recess to come and consider the Public Finance
Managemement (Amendment) Bill, 2015.

Bank of Uganda without the approval of parliament.

I get surprised that hardly six months down the road, our Government wants
to amend this law. There is a risk if you open a window for Government to
access money without the approval of Parliament. The Minister should concede
defeat on this Bill, said Henry Musaasizi the MP Rubanda East.
The discussion yesterday was dominated by the proposed amendment to allow
Government flexibility to get money from the Central Bank and refund later
without prior approval by parliament. The MPs noted that it is unconstitutional
for Government to withdraw money from the Treasury without the notice and
approval of Parliament.
According to the MPs, Government can always reach out to Parliament in case
of an emergency that calls for borrowing other than getting advances from

Why do you want to remove money from the Treasury without the approval of Parliament? What is the problem; Parliament has never
rejected any loans by Government for the last 15 years I have been in this parliament. You will empty the Treasury within one year if you
dont seek Parliament approval, said Odonga Otto the Aruu county MP.
The MPs demanded that Government makes it clear to Parliament, You must make it clear to this House what you are borrowing for and
also tell us why you are broke at this time. Tell us in the honest terms where you are going to spend this money and what for? Demanded
Fox Odoi (Budama West).
However in his explanation, Matia Kasaija the Minister for Finance told Parliament that Government wanted to access funds in case of
emergencies which may need cash without necessarily coming to Parliament for approval.
I was recently faced with a very embarrassing situation because I could not get sufficient money to pay wages, salaries and all sorts of
things for quarter one of the financial year 2015/16. So we sent a requisition to Bank of Uganda which said -No your account is dry, Kasaija
told the MPs.
He added that during the course of the budget year, the government reaches a point where the cash liquidity is very low and needs money
to run different programs. Kasaija noted, Government would borrow up to 18% of the domestic revenue and refund the money before the
end of the financial year.
The Government also reversed its earlier proposal to repeal the provision on the requirement to represent a certificate certifying that the
policy statements of the votes are gender and equity responsive. The MPs had queried the rationale to remove the certificate of gender
equity saying it would affect the great strides the government has made in empowering the women.
Parliament which was recalled from recess is on Wednesday 11th November 2015 afternoon (today) expected to go to the committee stage to
either pass or reject the Bill. The House chaired by Speaker Rebecca Kadaga yesterday failed to pass the Bill after MPs demanded to have a
copy of the Government response to the Parliament Finance Committee report on this Bill which was presented by Hon. David Bahati and
The Attorney General Fred Ruhindi but had not been circulated to all MPs.

Produced by the Civil Society Budget Advocacy Group (CSBAG).

Plot 11, Vubya close, Ntinda Nawaka Stretcher Road| P.O BOX 660, Ntinda Fixed line +256 755202154 |website: www.csbag.org, Email: csbag@csbag.org