Finance Ministry is undertaking consultations that will lead to amendment of the Public Finance Management Act, 2015 to effectively cater for the budgeting process through the legislature.
The revelation was made by the State Minister for Finance, Planning and Economic Development (General Duties), Henry Musasizi, during a plenary sitting held on Tuesday, March 5, 2023.
“It is now about eight years ago since we enacted this law and so many things have evolved,” Musasizi said.
The revelation comes after the Chairperson of the Rules, Privileges and Discipline Committee, Abdu Katuntu, presented a report on the proposed alignment of the Rules of Procedure of Parliament with the programme-based budgeting framework of government.
The Deputy Speaker, Thomas Tayebwa, previously raised concern over misalignment between the National Budget Framework Paper (NBFP) for financial years 2024/2025 – 2028/2029 and the report of the Budget Committee on the document.
Tayebwa noted on January 15, 2024, that whereas the NBFP was programme-based, the report of the Budget Committee was sector-based, contrary to the Public Finance Management Act (PFMA).
The Budget Committee Chairperson, Patrick Isiagi, then, observed that programme-based budgeting was not yet aligned at all stages of the budgeting process, and for such alignment to be effected, it would require amendment of the Rules of Procedure of Parliament to constitute programme committees.
While presenting the findings of the committee, Katuntu said amending the Rules of Procedure to align them with the programme-based budgeting framework would depend on amendment of the Public Finance Management Act.
“The committee recommends that government tables amendments to the PFMA to give legal effect to programme-based budgeting and conduct a comprehensive review of government ministries which are currently sector-based to be programme-based,” said Katuntu.
He noted that this will enable Parliament to make appropriate amendments to its Rules of Procedure, to reflect the changes.
The Deputy Speaker gave the minister a year within which to make and complete consultations on amendments to the PFMA and present a report to Parliament.
“It is a long process but, in the meantime, you should give us periodic updates,” Tayebwa added.
Musasizi noted that the highlighted mismatch will not inhibit the current budgeting process.
