Why Parliament rejected bid to curb off-budget spending by agencies
“Many of these entities do not fully disclose to Parliament the revenues they collect outside their traditional funding channels,” Ariko said, adding that all public revenues should be consolidated during the budgeting process to enhance transparency.
The House, presided over by Speaker Anita Among on March 26, 2026, heard that the initiative was driven by concerns that a substantial portion of public resources is being managed outside the legally mandated budget process, weakening Parliament’s constitutional oversight role.
KAMPALA - Parliament has declined to grant leave for the introduction of a Private Member’s Bill seeking to tighten control over public funds collected and spent by government agencies outside the central budget framework.
The proposed legislation, the Public Finance Management (Amendment) Bill, 2026, was moved by Ssemwanga Gyaviira (NRM, Buyamba County), aiming to ensure that all revenues collected by state corporations, public enterprises, and statutory authorities are deposited into the Consolidated Fund and subjected to parliamentary appropriation.
The House, presided over by Speaker Anita Among on March 26, 2026, heard that the initiative was driven by concerns that a substantial portion of public resources is being managed outside the legally mandated budget process, weakening Parliament’s constitutional oversight role.
Gyaviira argued that although the Public Finance Management Act 2015 provides for some entities to retain part of their internally generated revenues for operational use, the provision has increasingly been expanded in ways that reduce effective parliamentary scrutiny.
He warned that this has created gaps in accountability, pointing to a reported reconciliation variance of about sh4.3 trillion between the Government Consolidated Fund Statement and the Consolidated Statement of Appropriation, suggesting that significant funds are not fully reflected in the official budget system.
The motion further raised concerns that some statutory bodies accumulate large balances in their accounts, which are at times invested in fixed deposits and government securities or used to extend staff loans, even as government continues borrowing at commercial rates.
Seconding the motion, Herbert Ariko (NRM, Soroti East Division) said fragmented financial reporting by agencies undermines planning and leads to inefficiencies in resource allocation.
“Many of these entities do not fully disclose to Parliament the revenues they collect outside their traditional funding channels,” Ariko said, adding that all public revenues should be consolidated during the budgeting process to enhance transparency.
However, Speaker Among directed that a list of institutions retaining such funds be presented to the House for further scrutiny.
Isaac Otimgiw (NRM, Padyere County) cited the National Drug Authority as one of the agencies collecting significant revenues and spending them at source.
The Attorney General, Kiryowa Kiwanuka, cautioned that the proposal could raise constitutional concerns, arguing that altering established financial arrangements would require careful legal alignment to avoid conflict with the Constitution.
Jonathan Odur (UPC, Erute County South) countered that the issue would be better addressed through amendments to the individual laws governing specific agencies that retain and spend revenues.
State Minister for Trade, Industry and Cooperatives (Industry), David Bahati, maintained that no government institution is currently operating outside the law in its financial management.
Despite this, proponents of the motion warned that the current system has created what they described as a “parallel fiscal space” with limited parliamentary oversight, potentially undermining budget credibility and efficient use of public resources.