Parliament & Executive Face Off Over UGX 750 Billion Budget Reallocation

On June 14, 2024, as Ugandans grappled with Finance Minister Matia Kasaija’s Budget Speech, the reality of rising fuel and alcohol taxes loomed large. Despite the burden, government unveiled plans to enhance services and tackle public debt. Hope mingled with concern as the nation prepared for the 2024/25 financial year.

A clash ignited between Parliament and the Executive when President Yoweri Museveni sent back the Appropriation Bill 2024 on June 22, accusing the legislature of corruption. Titled “Budget Re-Allocation by Parliament,” his letter was dramatically presented by Speaker Anita Among to MPs during the House’s plenary session on July 2, 2024. The charged atmosphere underscored deep divisions within the government.

Corruption Allegations and Reallocation Disputes

In his letter, President Museveni accused legislators of reallocating UGX 3.71 trillion in the previous financial year to benefit their constituencies, hindering other developments like road construction. He highlighted the sabotage of national priorities by MPs, noting that the diversion of funds was equivalent to aborting nine major road projects like the Kampala-Masaka Road. Museveni emphasized the recurring issues of budgeting indiscipline, sabotage of national priorities, and suspicions of massive corruption.

The President’s letter detailed that in the past four fiscal years, MPs had reallocated a total of UGX 3.71 trillion, which he described as “real sabotage.” He questioned how much more beneficial it would have been if roads like Kumi-Ngora-Serere—Bugondo and Soroti-Amuria-Acol Pii-Patongo-Abim had been tarmacked. Museveni concluded with a request to halt the practice of budget reshuffling without Executive input, as per Article 91 (3) (c) of the 1995 Constitution. He also cautioned against MPs distributing funds to gain cheap popularity in their constituencies.

Parliament’s Reaction and Legal Clarifications

MPs reacted strongly to the corruption allegations, debating emotionally and criticizing the President for prioritizing his own agenda over the Budget Committee’s recommendations. They felt targeted by social media and public accusations of corruption. Tight security surrounded the parliamentary sitting amid calls for protests against “corrupt lawmakers.”

Lwemiyaga County MP Theodore Ssekikubo criticized the timing of the President’s rejection of the Appropriation Bill, while Butambala District Woman MP Aisha Kabanda questioned Parliament’s mandate in light of the President’s accusations. Prime Minister Robina Nabbanja sought legal clarification from Attorney General Kiryowa Kiwanuka, who confirmed the President’s actions were constitutionally and procedurally sound.

Funding Priorities and Legislative Defense

State Minister for Finance Henry Musasizi detailed the reallocated funds’ priorities, including UGX 30 billion for the Uganda Development Bank, UGX 25 billion for tourism development, and UGX 10 billion for rural water supply projects. Despite these justifications, Budget Committee Chairperson Patrick Opolot Isiagi defended the reallocation decisions, emphasizing their alignment with national interests.

Legislators expressed frustration over the Executive’s portrayal of Parliament as a problem. Speaker Anita Among defended the integrity of the Budget Committee, stressing the presumption of innocence for those accused of corruption. As tensions flared, calls for peaceful resolution and maintaining Parliament’s role in budget scrutiny were echoed.

Budget Overview and Ongoing Debates

The reconsidered Appropriation Bill approved an expenditure of over UGX 72.136 trillion, reflecting a UGX 14 trillion increase from the initial estimates of UGX 58.34 trillion. The budget includes UGX 18.9 trillion for recurrent expenditures and UGX 34.7 trillion for development.

The ongoing debate highlights deep divisions within Uganda’s government over budget priorities, corruption allegations, and the balance of power between the Executive and Parliament.