Gov’t under pressure to withdraw Public Finance

Management Amendment Bill

“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any one time allow the Government to borrow money without the approval of Parliament, I beg to move that this Bill is withdrawn,” said Cecilia Ogwal the Opposition Chief Whip.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 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

Bank of Uganda without the approval of parliament. “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 don’t 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.

CSBAG

136TH EDITION

“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.

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

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