In a resolute move against corruption, President Museveni has declared he will not sign the Appropriation Bill, 2024, unless Parliament restores the Shs750 billion reallocated from government priorities in the 2024/2025 Budget.
During a heated Cabinet meeting at State House on Monday, President Museveni, dressed in his signature long-sleeved white shirt, emphasized his unwavering stance on tackling graft, impunity, and abuse of public trust. Sources described the President as visibly angry as he chaired the meeting.
The President’s firm position on the draft legislation, which governs access to the Consolidated Fund, has cast uncertainty over the execution of the FY2024/2025 Budget, potentially jeopardizing planned activities just days before the current financial year ends on June 30.
The Appropriation Act specifies the funds allocated to each government ministry, department, and local government, and authorizes their withdrawal from the Consolidated Fund. The bill currently proposes the expenditure of Shs30.314 trillion for the fiscal year ending June 30, 2025.
As of last evening, Speaker Anita Among had not received the President’s written reservations. Should the President return the bill for reconsideration, Speaker Among will be compelled to recall the House from recess to address the looming budget crisis.
Under Article 79(1) of the Constitution, Parliament holds the power to legislate for Uganda’s peace, order, development, and good governance. The Constitution grants the President 30 days to assent to the bill, but it can become law without his signature if he returns it to Parliament twice under Article 91(3).
While some lawmakers accuse the President of attempting to override Parliament’s statutory budgeting powers, others highlight longstanding issues of appropriation abuse and influence peddling within the Budget Committee.
Opposition Response
Shadow Attorney General Wilfred Niwagaba (Independent, Ndorwa East) defended Parliament’s role, stating, “Parliament is not a rubber-stamp institution and is mandated to examine and amend the Appropriation Bill as it does other bills.” He added that the Constitution allows the bill to become law without the President’s assent if Parliament does not agree with his concerns upon reconsideration.
Niwagaba argued that reallocation is part of the budgeting process, emphasizing Parliament’s responsibility to represent the people’s interests.
Earlier this month, Permanent Secretary in the Finance Ministry and Secretary to the Treasury, Mr. Ramathan Ggoobi, accused MPs of tampering with the National Budget, shifting government priorities to suit their constituencies’ needs.
A senior parliamentary official countered, accusing the Finance Ministry of inciting the President and alleging that the budget dispute is more about the Shs400 billion cut from Treasury operations than the Shs750 billion reallocated by Parliament.
Government Priorities
State Minister for National Guidance Mr. Godfrey Kabyanga confirmed the President’s concerns but downplayed fears of a budget crisis. He expressed confidence that the Executive and Legislature would harmonize their positions, stating that provisions in the law can handle such disagreements.
Kabyanga emphasized the need for MPs to respect the Executive’s allocations, as the Budget is meant to implement the government’s manifesto and development plans. He warned against selfish changes serving personal interests rather than the wider public good.
Reallocation Controversy
During the Cabinet meeting, the President reportedly criticized the “irrational” reallocation of Shs750.47 billion from various votes to district or constituency projects linked to Budget Committee members and unidentified ministers. Senior Finance Ministry officials revealed that Parliament has diverted over Shs3 trillion from government priorities over three years to fund their preferences.
The officials called for a wider investigation into the Budget Committee’s activities. However, Budget Committee members accused Finance Ministry officials of duplicity, citing instances of over-budgeting and reallocation of funds, such as the Shs900 billion from Treasury operations to other unfunded priorities. This decision was later overturned, and Shs600 billion was used to bail out a private investor.
