Parliament has rejected and reallocated the Shs200 billion earmarked for compensating Uganda National Roads Authority (UNRA) staff affected by rationalization. Instead, the funds have been designated for debt repayment.
This decision was made during deliberations led by Dan Kimosho, the Chairperson of the Committee on Physical Infrastructure, while presenting the Budget Estimates and Ministerial Policy Statement for the ministries of Works and Transport and Lands Housing and Urban Development on Friday, April 12, 2024.
Kimosho highlighted that the Project 1616 Retooling of UNRA saw an increase of Shs207.67 billion, reaching Shs216.7 billion proposed for the financial year 2024/2025. This increase was mainly due to allocating UGX200 billion for terminal benefits for 1,560 staff affected by the rationalization and merger of UNRA.
The Committee observed that appropriating this resource would be premature, as the rationalization of government agencies is still ongoing, violating Parliament Rules of Procedure.
Consequently, Parliament decided to postpone the allocation of the Shs200 billion for further deliberation. The committee consequently redirected the funds towards paying off UNRA’s debts.
UNRA concluded the financial year 2022/2023 with a debt of Shs591.368 billion on projects financed by the Government of Uganda. The committee recognized that these arrears and limited financing hinder efforts to achieve the objectives outlined in the National Development Plan (NDP) III.
Parliament allocated funds for other vital projects under the Ministry of Works and the Ministry of Lands. Immediate interventions include allocating Shs2 billion for public water transport safety awareness programs.
The Committee recommended reallocating the proposed Shs176 billion under Local Governments for road maintenance grants to the Uganda Road Fund (URF) budget, to be used for road maintenance in line with Parliament’s resolution.
To address declining budgets for road maintenance, Parliament proposed an additional allocation of Shs200 billion to the URF for the financial year 2024/2025.
Furthermore, the Committee highlighted the need for the Ministry of Lands Housing and Urban Development to relocate to allow the Parliamentary Commission to construct Parliament offices. It proposed allocating Shs24 billion for rent and Shs102 billion in the short to medium term for the construction of a permanent home.
John Baptist Nambeshe, the Chief Opposition Whip, suggested that given resource constraints, the Ministry should allow the Parliamentary Commission to demolish Development House and construct a complex to house both entities.
Speaker Anita Among mentioned that the government is planning to construct a one-stop center to accommodate all government ministries and departments.
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