The Ministry of Finance, Planning and Economic Development has allocated over Shs1.2 trillion to various ministries, departments, and agencies that are taking on the responsibilities of streamlined agencies.
In a letter dated February 26, 2025, addressed to accounting officers, it was stated that these funds will support the implementation of updated structures, new mandates, and functions within the ministries.
During a session on March 4, 2025, Deputy Speaker Thomas Tayebwa read a letter from the Finance Ministry detailing the funding distribution.
Of the total, Shs296 billion is designated for recurrent expenditures, Shs940 billion for development projects, and Shs7 billion will cover statutory obligations.
“The purpose of this letter is to forward to you the resolution of Parliament and request you to initiate the supplementary allocation on the programme budgeting system and provide revised work plans,” reads the letter in part.
Tayebwa said the source of funding and budget lines were clear, indicating that Parliament approved transfer of budgets allocated to votes of rationalised agencies to the votes of respective MDAs.
“What is very important is to put the different ministries and agencies to task to ensure that they start executing their plans with the availed money,” Tayebwa added.
The Minister for Public Service, Muruli Mukasa in his statement to Parliament said that said Shs29.6 billion has been provided to relevant line ministries in the first quarter of financial year 2024/25 to cater for gratuity, pension and severance packages for affected staff.
He added that the delay in provision of funds for the process had affected the effective incorporation of the functions of rationalised agencies into the respective line ministries, attributing it to a process by the Finance Ministry to re-vote and allocate funds to receiving institutions.
“Most of the institutions that have finalised the validation exercises do not have wage to pay salaries for the successful staff. This necessitates the Ministry of Finance to fast-track the transfer of wage to the receiving MDAs,” said Muruli Mukasa.
Before the Deputy Speaker read the letter from the Finance Ministry, Members of Parliament raised concerns about the delayed process of availing funds for terminal benefits.
“There was a guarantee by the Minister for Finance that there is money for the rationalisation Bills that were brought for Parliament’s consideration. People have pensions that are not being paid and it is affecting their welfare,” said Denis Oguzu Lee (FDC, Maracha County).
Sarah Opendi (NRM, Tororo District Woman Representative) questioned the manner in which the certificates of financial implication were issued by the Ministry of Finance.
“The statement by the Minister for Public Service states that most institutions have not finalised the calculations for payment of pension, gratuity and severance packages for deserving staff. How did you come up with a certificate of financial implication without these computations?” Opendi asked.
MPs also raised concerns about stalled works by some agencies whose functions were transferred to line ministries.
Buhweju District Woman Representative, Olive Katwesigye and Patrick Aeku (NRM, Soroti County) observed that projects under the Rural Electrification Agency (REA) stalled after the rationalisation of agencies.
Nathan Byanyima (NRM, Bukanga North County) and Zumura Maneno (NRM, Obongi District Woman Representative) raised fears of stalled road construction works and ferry transport services, which they said is impacting negatively on the public.
