The government has presented a supplementary budget request of Shs288.624 billion for the 2023/24 financial year. This request is intended to cover various expenses, including the purchase of shares in the East African Oil Pipeline (EACOP) by the Uganda National Oil Company (UNOC) and the construction of the Hoima City Stadium.
According to Henry Musasizi, Minister of State for Finance, the funding for UNOC is necessary to meet the cash call arising from delayed financial close by the financiers.
This funding will be accessed from the Petroleum Fund, which currently has Shs400 billion. The government proposes to utilize Shs284.634 billion to finance the acquisition of equity in EACOP and the construction of Hoima City Stadium.
Additionally, the government is seeking Shs2.5 billion to meet the shortfall in the operational budget for the Uganda Blood Transfusion Services (UBTS) for blood collection, processing, and distribution. This funding will be sourced from savings from the wage bill after an audit.
The construction of Hoima City Stadium is a priority, with the government proposing to draw funds from the Petroleum Fund to provide Shs152 billion as a 30% advance payment. This will enable the contractor, M/S Summa, to commence construction and complete the stadium before the deadline of December 31, 2025, set by the Confederation of African Football (CAF) for Uganda to co-host the 2027 Africa Cup of Nations.
Following Uganda’s assumption of the Chairmanship of the Non-Aligned Movement, the Ministry of Finance has proposed an additional Shs1.49 billion for the Uganda Embassy in Geneva to address a funding shortfall arising from a loss of poundage. This funding will be used to settle accumulated dues on rent, salaries, medical insurance, and utilities to avoid legal action from landlords, service providers, and contract staff.
However, the supplementary budget request has been met with resistance from the Budget Committee, with Chairperson Patrick Isiagi rejecting the request as illegal since it did not follow the normal procedures of being tabled before Parliament before being referred for processing by the Budget Committee.
Ibrahim Ssemujju, Member of Parliament for Kira Municipality, described the supplementary proposal as fraudulent, questioning how the entities seeking extra funds will be able to absorb the funds within 20 days ahead of the closure of the financial year in June 2024.
The government’s request for additional funding has sparked debate, with concerns raised about the ability of the entities to absorb the funds within the remaining 20 days of the financial year.
The procurement procedures and plans have also been questioned, with some MPs expressing skepticism about the government’s ability to spend Shs288 billion in such a short time frame.
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