What changed in budget process?

By Umaru Kashaka

MANY Ugandans today were not looking forward to the reading of 2015/16 national budget by the finance minister, Matia Kasaija, to know which sectors will be prioritised.

The recently passed Public Finance and Management Act, 2015, made the reading of the budget a formality since all the debates and resources allocations are concluded before May 31.

On July 1 all government departments and ministries will start spending the funds allocated to them, unlike in the past where they had to wait for the passing of the budget in September.

How the new budget cycle works

According to the new law, the budget process starts with accounting officers submitting their budget estimates for the new financial year to the ministry of finance by November 1.

The finance ministry then compiles the submitted estimates of expenditure and revenues into the budget framework paper and hands them to Parliament by December 31.

In March, government ministries, departments and agencies present their ministerial policy statements to Parliament for scrutiny.

The budget committee scrutinises the estimates and makes recommendations to the Executive.

The committee tables the report on the budget framework paper to the House. The opposition also tables its alternative budget as well as recommendations for consideration.

The House then adopts the draft budget by February 1 and sends the proposed amendments and recommendations back to the Executive.

The Executive resubmits to the House its response to the recommendations made by parliament. Once agreed, Parliament adopts the draft estimates at least by April 1.

The draft estimates have already been passed. The tax Bill and the committees' sectorial reports are presented to the House for adoption.

The budget committee compiles the reports into a single budget, which is tabled before the House for approval.

On June 11, the finance minister reads the budget, which becomes effective on July 1.

Uganda has maintained the June 15 deadline for the budget speech to conform to the agreed practice that the budgets of the five East African Community countries are read on the same day.