This document is a guide for Palriamentarians when debating the Uganda Public Finance Bill, 2012. It is produced by the e Civil Society Budget Advocacy Group (CSBAG)

1. 1
14Clauses
to Consider when Debating the Uganda
PUBLIC FINANCE BILL, 2012
June 2014

2. 2
The Public Finance Bill, 2012 is a very important
proposed legislation for effective, fair and equitable
management of public finances for the benefit
of citizens in Uganda. A number of proposals
advanced by the Civil Society Budget Advocacy
Group (CSBAG) were adopted by the Committees
of Parliament charged with scrutinizing the Bill.
However, it was also found out that more issues were still outstanding that
required consideration by Parliament as it debates and passes this Bill. Civil Society
Organizations under the Umbrella of CSBAG have analyzed the amendments made
by the Parliamentary Committees on the Budget, Natural Resources and Finance
and have come up with findings that can help Members of Parliament to ensure
that critical issues are not left out in the bill. These range from simple clarities to
substantive gaps in the Bill. Some of the key gaps are in the areas of the Attorney
General issuing a Certificate of Gender and Equity, establishment of the post of
Secretary to the Treasury, ring-fencing of the budget for the Auditor General,
treasury memorandum, reporting on fiscal performance, internal control system for
classified expenditure and handing of regulations to be issued by the Minister.
2

3. 3
PART II
MACROECONOMIC
AND FISCAL
POLICIES
Clause 5
Development of Fiscal Policies
CSBAG CONCERN
This Clause emphasises “National
Development Plans”, yet there may
be other short to long-term plans
prepared and approved to guide the
Government development agenda.
RECOMMENDATION
Replace the statement “having
regard to the national development
plans” with “subject to national plans
developed under Article 125 of the
1995 Constitution as amended in
2005 and Sections 7(1) and 19 (2) of
the National Planning Authority Act,
2002” under Clause 5(1),
JUSTIFICATION
This will broaden the scope of
National Development Plan and
recognize all development plans
(Short to long term) that are provided
by the National Planning Authority
and approved by Parliament.
CSBAG CONCERN
This Clause was rephrased by the
Committees-However it is considered
ambiguous since ‘Value For Money’
partly refers to efficiency and
effectiveness.
RECOMMENDATION
Consider redrafting Clause 5 (2)
(g) to read as “value for money in
expenditure”.
Rephrased Clause 5(2) (g)
A definition of Value for Money
(VFM) should be included in the
interpretation clause.
JUSTIFICATION
This is a necessity to avoid ambiguity
and for clarity purpose.
3

4. 4
Rephrased Clause 5(3)
CSBAG CONCERN
This clause limits setting of
measurable objectives for principles
of the fiscal policy from, sub clause
(a) up to (e) in the Charter of Fiscal
Responsibility and the Annual Budget
Framework Paper.
RECOMMENDATION
Sub clause (e) should be replaced with
(g) in Clause 5(3)
JUSTIFICATION
For clarity purposes but also to
ensure that the Medium Term and
Expenditure Framework is aligned to
the National Development Plan and
that Value For Money Audits are done
as a matter of principle.
CSBAG CONCERN
The Committees proposed to insert
a new clause 8(5) that provides for
a ‘Certificate of Gender and Equity’
which would be issued by the
Attorney General [AG] certifying
Ministries, Departments and Agencies’
compliance to gender and equity
issues.
RECOMMENDATION
Parliament should consider
replacing “Attorney General” under
new Clause 8(5) with ‘Equal
Opportunities Commission (EOC)’
Clause 8
JUSTIFICATION
The authority mandated to issue the
Certificate of Gender and Equity for
consideration by Parliament is the
EOC.
There would be conflict of interest
for the AG who is also a member of
the cabinet is allowed to issue such a
certificate
Budget Framework Paper
4

5. 5
CSBAG CONCERN
The committees did not adopt the
civil society proposal of establishing
the office of the Secretary to the
Treasury before enumerating his/her
functions.
RECOMMENDATION
A new Clause 9 (1) should be
inserted about establishing the
position of Secretary to the Treasury.
Proposed Clause 9(1) for
adoption, “there shall be a public
officer designated as Secretary to the
Treasury appointed by the President
acting in accordance with advice of
the Public Service Commission”.
Another Clause 9(2) should be
inserted that provides for other staff
to work under Secretary to Treasury.
Clause 9
The Functions of the Secretary to the Treasury.
Proposed Clause 9(2) for
adoption, “there shall be public
officers as may be necessary for the
efficient discharge of the powers and
functions by the Secretary to the
Treasury”.
JUSTIFICATION
Since the Secretary to Treasury issues
a number of instruments with other
authorities, including Courts of Law, it
is vital that the Public Finance Laws of
the country formally establishes this
post for avoidance of any doubt and
for clarity.
In addition, the Secretary to Treasury
may through the same law be given
powers to delegate some of his/
her powers to execute some of the
powers and functions of this office.
5

6. 6
PART III
BUDGET
PREPARATION,
APPROVAL AND
MANAGEMENT
Clause 12
Approval of Annual Budget by Parliament
Clause 13
Commitment of the approved budget
CSBAG CONCERN
The Committees of Parliament
proposed to insert a new Sub-Clause
12(2) providing for 1% of the annual
budget to be ring fenced for the
office of the Auditor General. This
may complicate budgeting processes
and similarly attract other entities to
demand for the same.
RECOMMENDATION
Parliament should consider dropping
this New Clause 12(2)
CSBAG CONCERN
The Committees did not adopt the
recommendations to provide for a
time frame within which the Annual
Cash Flow Plan of Government should
be issued
RECOMMENDATION
Secretary to the Treasury should
publish the Annual Cash Flow Plan
of Government within one month
JUSTIFICATION
If adopted this will undermine
Articles 155 and 156 of the 1995
constitution as amended in 2005
which provides for financial year
statements and appropriation
respectively.
It will further deem Section 33 of the
National Audit Act redundant since
there will be no relevance for the
Auditor General to prepare and seek
Parliament approval for funds.
after the annual budget has been
approved. Parliament should
further consider Inserting
the statement “within one
month” immediately after the word
‘Government’ in Clause 13(1)
JUSTIFICATION
This will enhance accountability
because timelines improve efficiency
of government reporting.
6

7. 7
CSBAG CONCERN
Whereas Clause 14 provides
for preparation, submission and
consolidation of an Expenditure
Commitment Report, such a report
should be laid before Parliament
for information purposes as well as
published to enhance transparency
and accountability.
RECOMMENDATION
Parliament should consider inserting
a new Clause 14(3) that allows
Clause 14
parliament to review these reports
and to publish them for the public to
access this information
Proposed Clause 14(3) for
adoption, “the report produced
under Clause 14(2) should be laid
before Parliament and published”.
JUSTIFICATION
This will enhance transparency and
accountability of the government on
the management of public resources.
Report on expenditure commitment
7
Clause 16
CSBAG CONCERN
Clause 16 (1) provides that the
Minister, by end of every February and
October of a Financial year, should
submit a report to Parliament on; the
current and projected state of the
economy.
RECOMMENDATION
Parliament should consider inserting
the following new sub clauses
under Clause 16(1).
(g) “Status of consolidated multiyear
expenditure commitments of the
government”.
(h) “A fiscal risk statement indicating
all quantified major potential
claims on the government”
(i) “A statement of extra-budgetary
spending including on special
funds”
JUSTIFICATION
Government needs to report
on status of multi expenditure
commitments to enhance monitoring,
transparency and accountability.
Parliament needs to be fully informed
in the budget documents of off-
budget spending and contingent
liabilities.
Reporting on fiscal performance

8. 8
8
CSBAG CONCERN
Clause 22(3) allows Parliament
to appropriate supplementary
expenditure beyond the 3.5% in the
contingencies fund.
RECOMMENDATION
Parliament should consider deleting
this provision under Clause 22(3)
Parliament should consider revising
downwards the proposed 10% to 3% in
Clause 21 (3)
Clause 21[6] needs to be revised to
avoid multiple approvals. Parliament
should be the only authority to
approve supplementary appropriations
and supplementary budgets.
JUSTIFICATION
In order not to undermine the
budgeting process and enforce
budget discipline, no supplementary
Clause 22
Clause 21
JUSTIFICATION
In order not to undermine the
budgeting process and enforce
budget discipline, no supplementary
expenditure should be appropriated
beyond the provisions of the
contingency fund.
expenditure should be appropriated
beyond the provisions of the
contingency fund.
JUSTIFICATION
Allowing a 10% virement of a votes
intra allocation disrupts efficiency and
undermines the budgeting process
This is the first step in reducing the
misuse of supplementary budgeting;
however Approval of supplementary
appropriations and supplementary
budget by two authorities provides
room for abuse.
The Contingency Fund
The Supplemantary Budget
8

9. 9
Clause 27 Special Funds
CSBAG CONCERN
The Committees
recommended
amendments to the Bill
for government to indicate
the source of financing for
special funds.
RECOMMENDATION
Parliament should consider
inserting the statement
“subject to approval of
Parliament” in Clause
27(1) the statement.
JUSTIFICATION
It is important that
Parliament is given powers
to approve the creation of
any Special Fund to avoid
unnecessary establishment
of such funds. In effect,
Government must provide
and explain to Parliament
the merits of creating
special funds before issuing
statutory instruments.
CSBAG CONCERN
The Clause states that whoever flaunts
any of the Clauses 74 (2) and 76
(3) will be fined a maximum of %00
currency points and or four years
imprisonment.
Clause 76 (3) provides that the
minister “may” make regulations for
clarity on implementation of the Bill.
RECOMMENDATION
Parliament should consider increasing the
currency points to 1000 and or eight
years in prison in Clauses 74 (2) and
76 (3) respectively
Under Clause 76 (1) Parliament should
consider changing the word “May” to
“Shall”.
JUSTIFICATION
The penalty set in these two clauses
of 500 Currency points or four years
imprisonment is not prohibitive enough
to deter abuse of public finance
management laws.
The word ‘Shall’ makes it a legal
requirement and leaves no room for
subjectivity.
9
PART IV
SPECIAL
FUND
PART V
PETROLEUM REVENUE
MANAGEMENT
Clause 74 (2) & 76 (3) Offenses and regulations

10. 10
10
Clause 20
CSBAG CONCERN
A review of Clause 20 reveals the
need to provide for regulations on
Classified Expenditure to be issued by
the Minister under Clause 76 of the
Bill.
RECOMMENDATION
under Clause 20 (3), Parliament
should consider replacing the statement
“systems of internal control” with
“Internal Control Systems” and the
definition of ‘Internal Control Systems’
should be provided for under the
interpretation clause.
Parliament should consider inserting
new Clause 20 (4) to read as follows,
“The Internal Auditor General shall
evaluate and report to Parliament on
Internal Control Systems of Classified
Expenditure.”
JUSTIFICATION
There is need for the new office of the
Internal Auditor General to evaluate and
report on the internal control systems
established with the view of averting
fraud and ensuring accuracy of the
government information systems.
Classified Expenditure
10
Clause 55 (3)
CSBAG CONCERN
This Clause clarifies that Oil revenues
will only be used for financing
infrastructure and development projects
of government and not recurrent
expenditure.
RECOMMENDATION
Parliament should consider inserting a
new Clause 55(4)
The proposed Clause 55(4) for
adoption, “3% of the petroleum
revenue earmarked for this purpose
shall be used for social services,
agriculture, culture, rural development,
and marginalized groups”.
JUSTIFICATION
Development projects funded by
petroleum revenues should include
other key areas like an agricultural bank,
pension fund, medical insurance for all,
projects targeting the chronically poor
people as well as private sector credit.
These will spur youth employment and
economic activities that the developed
infrastructure will utilize even after oil
depletion.
Transfers to the Consolidated fund

11. 11
Our Team
Action Aid International Uganda | (AA - IU)
Website: www.actionaid.org/Uganda
ABICWADistrict:
Abim African Centre for Trade and Development (ACTADE)
Website: www.actade.org
African Centre for Treatment and Rehabilitation of Torture
Victims (ACTV)
Website: www.actvuganda.org
Advance Afrika
Advocates Coalition for Development and Environment (ACODE)
Website: www.acode-u.org
Anti-Corruption Coalition Uganda (ACCU)
www.accu.or.ug
Agago NGO Forum
District: Agago
Action Group for Health Human Rights and HIV/AIDS (AGHA)
Website: www.agha.or.ug
African Youth Development Link (AYDL)
Website: www.aydl.org
African Women’s Economic Policy Network (AWEPON)
Website: www.awepon.net
Ashay Razyn foundation limited
Web: www.arfuganda.org
Awotid – Uganda
District: Abim Caritas Kampala
Website: www.caritaskampala.org
Center for Domestic Violence (CEDOVIP)
Website www.preventgbvafrica.org
Centre for Women in Governance (CEWIGO)
Website: www.cewigo.org
Development Network of Indigenous Voluntary Associations
(DENIVA)
Website: www.deniva.or.ugDevelopment Research and Training
(DRT)
Website: www.drt-ug.org
Development Watch ( DEMWatch)
Deutsche Stiftung Weltbevölkerung- Uganda
Website: www.dsw-online.org
Eastern and Southern Africa Small Scale Farmers Forum (ESAFF-
Uganda)
Website: www.esaff.org
Environmental Alert (EA)
Website: www.envalert.org
Food Rights Alliance (FRA)
Web: www.fra.ug
Forum for Women in Democracy (FOWODE)
Website: (www.fowode.org)
Forum for Kalongo Parish Women Association
District: Agago
FOWODE Young Leaders Alumni Association (FYLAA)
Website: www.fylaa.org
Hope after Rape
Website: www.har.interconnection.org
Hunger Fighters Uganda
Website: www.hungerfightersuganda.org
Human Rights Network Uganda (HURINET- U)
Website: www.hurinet.or.ug
Initiative for Social and Economic Rights -
Website: www.iser-uganda.org
Institute of social transformation (IST)
Website: www.ist-tft.orgISIS-WICCE
Website: www.isis.or.ug
Jenga AfrikaWebsite: www.jengaafrika.org
Muti Community Based Development Initiative
District: Abim
National Association of Women Organisations in Uganda
(NAWOU)
Website: www.nawouganda.org
National Union of Women with Disabilities of Uganda (NUWODU)
National Union of Disabled Persons Uganda (NUDIPU)
www: www.nudipu.org
Nen Anyim Community Based Group
District: Agago
Participatory Ecological Land Use Management (PELUM)
Website: www.pelumuganda.org
Patongo Counseling Community Outreach
District: Agago
Passion for community development organization
District: Agago
People Living with HIV/AIDS Network
District: Abim
Platform for Citizen Participation and Accountability (PLACA)
Website: www.placaug.org
Regional Associates for Community Initiatives (RACI)
Website: www.raciug.org
Southern and Eastern African Trade Information and Negotiations
Institute (SEATINI-U)
Website: www.seatiniuganda.org
Uganda Debt Network (UDN)
Website: www.udn.or.ug
Uganda National Health Consumers’ Organization (UNHCO)
Web: www.unhco.or.ug
Uganda National NGO Forum.
Website: www.ngoforum.or.ug
Uganda Network of AIDS Service OrganizationASO)
Website: www.unaso.org Uganda Road Sector Support Initiative
(URSSI)
Website: www.ugandaroadsector.org
Uganda Women Entrepreneurs Association Limited
Web: www.uweal.co.ug
Uganda Joint Christian Council (UJCC)
www.ujcc.co.ugUganda Women’s Network (UWONET)
Website: www.uwonet.or.ug
Uganda Youth Network (UYONET)
Web: www.info.or.ug
Volunteer Efforts for Development Concerns (VEDCO)
Website: www.vedcouganda.org
Water Aid Uganda
Website: www.wateraid.org/uganda
Wagwoke WUnu
District: Agago
Women and Girl Child Development Association
Website: www.wegcda.org
Widows and Orphans Support Organisation
District: Agago
Apac Anti-Corruption Coalition
District Apac
Teso Anti-Corruption Coalition
District: Soroti
Sebei Diocese Community Development
District: Kapchorwa
Rwenzori Anti -Corruption Coalition
District: Kabarole
Kind Initiative for Development
District: Kyenjojo
The Civil Society Budget Advocacy Group (CSBAG) since its launch in 2004 has made major
leaps towards Ensuring that the Ugandan budget making process is more participatory,
transparent and citizens’ concerns are prioritized in government budget allocations and
implementation. Our membership is comprised of the following institutions:

12. 12
PRODUCED BY:
Civil Society Budget Advocacy Group (CSBAG)
P.O. Box 660, Ntinda
Plot 15 Vubya Close, Ntinda Nakawa Rd
Fixed Line: +256-41-286063, Mob: +256-55-202-154
E-mail: csbag@csbag.org
Web: www.csbag.org
@CSBAGUGANDA CSBAG/Facebook.com
The Civil Society Budget Advocacy Group (CSBAG) is a coalition of
organizations and Individuals formed in 2004 to bring together CSOs at
national and district levels to influence government decisions on resource
mobilization and utilization for equitable and sustainable development. The
vision of CSBAG is to have a Uganda with a People Centered Budget that
dignifies humanity. Its mission is to work towards ensuring that budgets at
local and national levels are financed, designed, implemented and monitored
to promote prudent and transparent allocation of national resources for the
benefit of marginalized groups.
One of the critical activities of CSBAG is around public financial management
and prudency. Ensuring that public financial regulations are strong and
adhered to is critical in making corruption harder to sustain and it improves
services delivery.