Public Finance Management Act, 2015

Section Commencement Section This Act shall come into force upon assent by the President and publication in the gazette.

Section Purpose of Act Section The purpose of this Act is to provide for public financial management in Uganda by establishing— the principles and procedures for a sound fiscal policy and macroeconomic management; the processes for the preparation, approval and management of a transparent, credible and predictable annual budget; the mechanism for the operation of the Contingencies Fund; the mechanisms for cash, assets and liability management; the reporting and accounting systems, and internal controls; and the legal and regulatory framework for the collection, allocation and management of petroleum revenue.

Section Interpretation Section In this Act unless the context otherwise requires— “Accountant General” means the person appointed as such in the Public Service; “Accounting Officer” means a person who is— a company registered under the Companies Act in which the Government or a state enterprise is able to— designated or appointed in writing, as Accounting Officer, by the Secretary to the Treasury, to be responsible for a vote; or appointed as Accounting Officer under an Act of Parliament or under an instrument of appointment made under an Act of Parliament, to be responsible for a vote; “accounting standards” means authoritative statements approved by the Accountant General, indicating how particular types of transactions and other events are to be reflected in the accounts and financial statements of a vote; “appropriation” means an authorization made under an Appropriation Act permitting payment out of the Consolidated Fund or the Petroleum Fund under specified conditions or for a specified purpose; “Appropriation Act” means the Act passed in accordance with Article 156 of the Constitution, which authorises expenditure of public money for a financial year; “budget” means the Gove...

Section Establishment of Treasury Section There is established the Treasury consisting of— the Minister, the Secretary to the Treasury, the Accountant-General, and the other directorates responsible for economic and finance matters in the Ministry. For avoidance of doubt, the Minister shall be the head of the Treasury.

Section Appointment and functions of the Secretary to the Treasury Section The Secretary to the Treasury shall— In the discharge of the functions in subsection (2), the Secretary to the Treasury may— There is a Secretary to the Treasury appointed by the President on the recommendation of the Public Service Commission. advise the Minister on economic, budgetary, and financial matters; coordinate the preparation of the Charter for Fiscal Responsibility, the annual budgeting process including the preparation of the Budget Framework Paper, the budget estimates and the Appropriation Bill; promote and enforce transparent, efficient, and effective management of the revenue and expenditure and the assets and liabilities of votes; set standards for the financial management systems and monitor the performance of those systems; ensure that the internal audit function of each vote and public corporation is appropriate to the needs of the vote or public corporation concerned and conforms to internationally recognized standards, in respect of its status and procedures; manage the Consolidated Fund and any other fund as may be assigned by the Minister; appoint or designate accounting officers in...

Section Parliament to analyse policy issues Section Parliament shall analyse policies and programmes that affect the economy and the annual budget and where necessary, make recommendations to the Ministry on alternative approaches to the policy or programme. Parliament shall ensure that public resources are held and utilised in a transparent, accountable, efficient, effective and sustainable manner and in accordance with the Charter for Fiscal Responsibility and the Budget Framework Paper.

Section Development of fiscal policy Section The fiscal objectives shall be based on the following principles— The objective of the Government, when setting fiscal objectives within the macroeconomic framework, shall be to ensure macroeconomic stability and economic growth having regard to the National Development Plan. sufficiency in revenue mobilisation to finance Government programmes; maintenance of prudent and sustainable levels of public debt; ensuring that the fiscal balance, when calculated without petroleum revenues, is maintained at a sustainable level over the medium term; management of revenues from petroleum resources and other finite natural resources for the benefit of current and future generations; management of fiscal risks in a prudent manner; consistency of the Medium Term Expenditure Framework to the National Development Plan; and efficiency, effectiveness and value for money in expenditure. For the purposes of this section, the Minister shall set measurable fiscal objectives for the fiscal principles in subsection (2) (a) to (e) in the Charter for Fiscal Responsibility and the annual Budget Framework Paper.

Section Charter for Fiscal Responsibility Section The Minister shall, not later than three months after the first sitting of Parliament after a general election, submit to Parliament for approval— a Charter for Fiscal Responsibility which shall provide— a statement indicating the measurable objectives for the fiscal policy for a period of not less than the next three financial years, which are consistent with the principles set out in section 4 ; an explanation of the methodology to be used to measure the performance of Government against the fiscal policy objectives required in subsection (1)(a)(i); a list of the sources of data to be used to report developments against the fiscal objectives required in subsection (1)(a)(i); and a demonstration of how the fiscal objectives set out under subsection (1)(a)(i) are consistent with principles set out in section 4 using the macroeconomic and fiscal data, assumptions, and projections provided in the economic and fiscal update referred to in subsection (1)(b); and an economic and fiscal update which shall be in accordance with the requirements of this section. The Minister shall publish the Charter for Fiscal Responsibility and the econom...

Section Cabinet to adhere to the principles of fiscal policy Section Cabinet shall, in making decisions with implications on public finances, or in determining, formulating and implementing Government policies as well as in performing any other functions conferred on it by this or any other Act, adhere to the Charter for Fiscal Responsibility and other requirements of this Act.

Section Deviations from objectives of the Charter for Fiscal Responsibility Section The Minister may, with the approval of Parliament, deviate from the objectives in the Charter for Fiscal Responsibility where Uganda experiences a natural disaster, an unanticipated severe economic shock, or any other significant unforeseen event that cannot be funded from the Contingency Fund or other funding mechanism provided in this Act or using prudent fiscal policy adjustments. The Minister shall within thirty days after deviation, publish a report in the gazette and on the website of the Ministry.

Section Tax and revenue bills Section The Minister shall, as part of achieving the objectives of the Charter for Fiscal Responsibility, present to Parliament tax and revenue bills which give the Government power to obtain money from taxes, fees, charges and other impositions to be proposed in the annual budget.

Section Budget Framework Paper Section The Minister shall, in consultation with the Equal Opportunities Commission, issue a certificate— Each Accounting Officer shall, in consultation with the relevant stakeholders, prepare a Budget Framework Paper for the vote, taking into consideration balanced development, gender and equity responsiveness and shall submit the Budget Framework Paper to the Minister. For the purposes of subsection (1), each Accounting Officer shall prepare and submit a Budget Framework Paper by 15th November of the financial year preceding the financial year to which the Budget Framework Paper relates. The Minister shall for each financial year, prepare a Budget Framework Paper which shall be consistent with the National Development Plan and with the Charter for Fiscal Responsibility. The Budget Framework Paper shall be in the format prescribed in Schedule 3. The Minister shall, with the approval of Cabinet, submit the Budget Framework Paper to Parliament by the 31st of December of the financial year preceding the financial year to which the Budget Framework Paper relates. certifying that the budget framework paper is gender and equity responsive; and specifying m...

Section Annual budget Section The annual budget shall— supply detailed information on recent fiscal developments and forecasts for the period determined by the Minister under paragraph (b) in respect of— The annual budget shall indicate— the financing estimates for the financial year to which the budget relates, including— The Minister shall present with the annual budget— a certificate issued by the Minister responsible for Finance in consultation with the Equal Opportunities Commission- A policy statement shall contain— a certificate issued by the Minister responsible for Finance in consultation with the Equal Opportunities Commission; The President shall cause to be prepared and laid before Parliament the proposed annual budget of Government for a financial year. The proposed annual budget shall be prepared in consultation with the relevant stakeholders. The Minister shall, on behalf of the President, present the proposed annual budget of a financial year to Parliament, by the 1st of April of the preceding financial year. The Speaker shall commit the proposed annual budget to the Budget Committee of Parliament and to each sectoral committee of Parliament the part of the annual b...

Section Approval of annual budget by Parliament Section Parliament shall, by the 31st of May of each year, consider and approve the annual budget and work plan of Government for the next financial year, the Appropriation Bill and any other Bills that may be necessary to implement the annual budget. The Speaker may extend any period for consideration and approval of the annual budget by Parliament for a reasonable period. Where the President is satisfied that the Appropriation Act in respect of any financial year, will not or has not come into operation by the beginning of any financial year, the President may, in accordance with Article 154 Constitution, by warrant under his or her hand, addressed to the Minister, authorise the issue of money from the Consolidated Fund for purposes of meeting the expenditure necessary to carry on the services of the Government, until the expiration of four months from the beginning of that financial year, or from the coming into operation of the Appropriation Act, whichever is the earlier.

Section Commitment of approved budget Section After approval of the annual budget by Parliament, the Secretary to Treasury shall issue the annual cashflow plan of Government, based on the procurement plans, work plans and recruitment plans approved by Parliament. The annual cashflow plan issued under subsection (1) shall be the basis for release of funds by the Accountant General to the Accounting Officers. An Accounting Officer shall commit the budget of a vote, based on the annual cashflow plan issued under this section.

Section Report on expenditure commitments Section An Accounting Officer shall, every three months prepare and submit to the Secretary to the Treasury, an expenditure commitment report indicating the actual and forecast commitments and cash position of the vote. The Secretary to the Treasury shall, using the report submitted in subsection (1) submit a consolidated expenditure commitment report of all the votes, to the Minister, within thirty days after the end of the three months.

Section Expiry of appropriations Section Every appropriation by Parliament shall expire and cease to have any effect at the close of the financial year for which it is made. A vote that does not expend money that was appropriated to the vote for the financial year shall at the close of the financial year, repay the money to the Consolidated Fund. A vote that repays money under subsection (2) shall revise its annual workplan, procurement plan and recruitment plan to take into account the unexpended money and the Minister responsible for the vote shall submit, as part of the budget for the preceding year, the revised workplan, procurement plan and recruitment plan to the Minister. Where a local government does not utilise at least 60 per cent of the unconditional or equalisation grant within a financial year, the local government shall by the 31st of July of the following financial year, explain in writing to the Minister, the reasons for its failure to utilise the grant. The Minister shall make a report to Parliament explaining the reasons for the non-utilization of the grant.

Section Reporting on fiscal performance Section The Minister shall, by the end of February and October of each financial year, make a report to Parliament on— The report made under subsection (1), shall indicate— the current and projected state of the economy; the performance of Government against the objectives of the Charter for Fiscal Responsibility; the financial and non-financial performance of the annual budget; the Contingencies Fund; and the virements made under section 22 , if any; the performance of the Petroleum Fund; and donations made to a vote, if any. the macroeconomic and fiscal forecasts in the annual budget and the changes, if any, to these forecasts; the execution of the annual budget compared to the appropriations approved by Parliament; how the changes in the forecasts in paragraph (a), if any, and how the actual fiscal performance may affect compliance with the objectives in the Charter for Fiscal Responsibility and the targets set in the Budget Framework Paper; and how the changes, if any, in the fiscal deficit are to be financed. The Minister shall at least twice in a financial year, in consultation with all votes, review the fiscal progress towards achievin...

Section Publication of pre and post-election economic and fiscal reports by the Minister Section The Minister shall publish— The economic and fiscal update shall— be accompanied by a statement signed by the Secretary to the Treasury stating that the economic and fiscal update includes— a pre-election economic and fiscal update not earlier than four months before the polling day for a general election; and a post-election economic and fiscal update not later than four months after the polling day of a general election. detail all the election related spending including the expenses of the Electoral Commission for the cost of the general election and any other expenses of a vote related to the election; all the policy decisions with economic and fiscal implications that the Government made before the day on which the contents of the economic and fiscal updates were finalised; and all the other circumstances with economic and fiscal implications which the Ministry was aware of on the day on which the contents of the economic and fiscal updates were finalised.

Section Reallocation of funds from a vote Section Parliament may, by resolution, authorize the Minister to reallocate funds from a vote to another vote where the functions of a vote are transferred to that other vote.

Section Budget execution by Accounting Officers Section An Accounting Officer shall, based on the annual cashflow plan issued by the Secretary to the Treasury under section 15 , plan and manage the activities as indicated in the policy statement of the vote. A vote shall not take any credit from any local company or body unless it has no unpaid domestic arrears from a debt in a previous financial year; and it has capacity to pay for the expenditure from the approved estimates as appropriated by Parliament for that financial year. An Accounting Officer shall after every three months, in the format prescribed by the Secretary to the Treasury, make a report to the Secretary to the Treasury on the activities of the vote and the execution of the budget of the vote.

Section Virements Section A virement made under subsection (1) shall not— The Minister may, upon request by an Accounting Officer, vary within a vote, the amount of the money allocated to the vote. be more than ten percent of the money allocated for an item or an activity of a vote where the veriment is from one item or activity to another; be contentious; or result into a future liability for the vote or the Government.

Section Multi-year expenditure commitments Section A vote shall not enter into a contract, transaction, or agreement that binds the Government to a financial commitment for more than one financial year or which results in a contingent liability, except where the financial commitment or contingent liability is authorised by Parliament. Parliament may, in the annual budget, authorise a vote to make a multiyear expenditure commitment, and where Parliament authorizes, the annual budget shall indicate the commitment approved for the financial year and the approved multiyear commitments. For avoidance of doubt, subsection (2) shall only apply where the multiyear commitment is consistent with the objectives of the Charter for Fiscal Responsibility and the Budget Framework Paper. The Minister shall for every financial year submit to Parliament a report on the performance of the multiyear commitments made.

Section Classified Expenditure Section The money appropriated for classified expenditure shall only be used for defence and national security purposes. A committee of Parliament comprising the chairperson of the Committee responsible for budget, the chairperson of the Committee responsible for defence and internal affairs, and another member appointed by the Speaker shall scrutinise the classified expenditure budget in a closed session. To ensure the confidentiality of defence and national security matters, a budget for classified expenditure shall be presented as a single line item. An Accounting Officer of a vote to which subsection (3) applies shall, in accordance with standards and guidelines issued by the Accountant General, establish appropriate systems of internal control in respect of the transactions and resources of the vote. Where money appropriated by Parliament for classified purposes is not sufficient, the supplementary funding shall be in accordance with the requirements of section 25 .

Section Supplementary budgets Section For the purposes of this section— Where in respect of any financial year, it is found that the amount appropriated by an Appropriation Act is insufficient, or that a need has arisen for expenditure for a purpose for which no amount has been appropriated by the Appropriation Act, a supplementary estimate, showing the amount required, shall be laid before Parliament, by the Minister through a Supplementary Appropriation Bill. For the purposes of Article 156 (2) (b) of the Constitution, the total sum of money that may be expended by Government for any purpose, in excess of the amount appropriated for a purpose for which no money was appropriated by the Appropriation Act, shall not exceed the total of the money appropriated to the Contingencies Fund. The Minister may, upon request by an Accounting Officer, approve a supplementary budget of up to 10 per cent of the Contingencies Fund. The supplementary budget under subsection (3) shall be financed from the Contingencies Fund in accordance with section 26 (8). The appropriated budget of a vote under subsection (3) shall not include any supplementary budget of the vote. Parliament may approve a supple...

Section The Contingencies Fund Section A report made under section 18 (1) (d) shall indicate— There is established a Contingencies Fund which shall, every financial year, be replenished with an amount equivalent to three and a half percent of the appropriated annual budget of Government of the previous financial year. For avoidance of doubt, the appropriated annual budget of Government under subsection (1) shall not include any supplementary budget. The Contingencies Fund shall form part of the annual budget and Parliament may, in addition to the amount under subsection (1), appropriate such other money as it may deem necessary. The Contingencies Fund shall be used to provide funding for supplementary expenditure under section 25 and to respond to natural disaster, as specified in this Part. Eighty five percent of the money of the Contingencies Fund shall be used to finance supplementary expenditure and fifteen percent shall be allocated to finance responses to natural disasters. Where required, more than fifteen percent of the money may be used to finance disasters. The Contingencies Fund shall be administered by the Minister. The Minister shall by warrant addressed to the Account...

Section Responses to natural disasters to be funded from the Contingencies Fund Section In this Part “natural disaster” means an event that causes severe human suffering or material, economic or environmental damage and which results in or is likely to result in the loss of essential services required to meet basic human needs and which— The money in the Contingencies Fund which is reserved for financing responses to natural disasters may be used to evacuate a Ugandan citizen who is affected by a natural disaster that occurs outside Uganda, where the conditions of subsection (3) are met. A financial donation or a donation in kind, made to a vote towards responding to a disaster, shall be declared by the Minister within 30 days of receipt and the financial donation or the donation in kind shall form part of the report made under section 18 (1). cannot be responded to with the resources available from the annual budget or other sources of funds; and creates a compelling need for funding that is in the public interest.

Section Supplementary expenditure financed from the Contingencies Fund Section A request under subsection (2) shall indicate— The Minister shall authorise withdrawals from the Contingencies Fund for supplementary expenditure which is authorized under section 25 (3). The Minister responsible for a vote or the head responsible for a vote, that requires financing from the Contingencies Fund, shall make a request, in writing, to the Minister requesting for the financing. the recipient of the funding, the amount required and the purpose for which the funding is required; and justification of why the funding cannot be delayed to another financial year. The Minister shall within four months after an authorization under subsection (1), table before Parliament for approval, the withdrawals from the Contingencies Fund.

Section Cost estimates for Bills Section Every Bill introduced in Parliament shall be accompanied by a certificate of financial implications issued by the Minister. The certificate of financial implications issued under subsection (1) shall indicate the estimates of revenue and expenditure over the period of not less than two years after the coming into effect of the Bill when passed. In addition to the requirements under subsection (2) the certificate of financial implications shall indicate the impact of the Bill on the economy. Notwithstanding sub sections (1), (2) and (3), a certificate of financial implication shall be deemed to have been issued after 60 days from the date of request for the certificate.

Section Report on exemption of tax Section A report made under subsection (1) shall indicate— A person or an authority granted power to exempt the payment or to vary any tax under an Act of Parliament, shall in each financial year, on or before the 30th day of September, the 31st day of December, the 31st day of March and the 30th day of June, make a report on the matter, to Parliament. the person exempted from the payment of tax; the reasons for the exemption; the amount of tax foregone by the Government; and the benefits to Government, from the exemption.

Section Liability on failure to meet requirements Section Where any institution or department of government which receives public money does not meet the requirements of this Act or contravenes this Act, Parliament may request the Minister responsible for the institution or department to make a report to Parliament with an explanation on the matter. Where it is established that the institution or department did not meet the requirements of this Act, or contravened the Act due to negligence or misconduct of a public officer of the institution or department, the public officer shall be held personally liable in accordance with section 79 or section 80 of this Act.

Section Offences Section A person commits an offence if that person, without lawful authority under this Act or any other Act— without reasonable excuse, fails to provide by the due date, any information the Secretary to the Treasury may reasonably require under section 11 (3) (b); without reasonable excuse fails to provide any information that the Accountant General, or a person authorised by him or her may reasonably require under this Act; without reasonable cause fails to provide, or willfully obstructs access to any item required under this Act; opens or causes to be opened any bank account for public or official use without the permission of the Accountant General or in any other way contravenes section 33 ; being an Accounting Officer, without reasonable excuse fails to comply with any requirement of this Act or fails to execute duties and functions imposed on him or her under this Act; borrows money on behalf of the Government, or repays or converts an existing loan; issues public securities, or varies their terms and conditions; lends money or any asset of Government; issues guarantees or indemnities on behalf of the Government; issues securities for loans made to the Gove...

Section Surcharge Section Where— a loss of or deficiency in, public money, that has been advanced to or was under the control of a public officer, occurs; or a loss or deficiency of, or damage to, public property or other property occurs while the property was in the care of a public officer, Where the negligence or misconduct of a public officer is not the sole cause of any loss, deficiency or destruction resulting in an action under subsection (1), the amount recoverable from the public officer may be restricted to only the cost of replacing or repairing the loss, deficiency, damage or destruction that the Minister considers, after due inquiry, to be just and equitable, having regard to the contribution made by the public officer to that loss, deficiency, damage or destruction. In this section a reference to a public officer includes a person who has been a public officer.

Section Regulations Section Notwithstanding the general effect of subsection (1) the Minister shall make regulations for— The Minister shall, by statutory instrument make regulations for the better carrying into effect this Act. the operation of public accounts; recording and controlling expenditure commitments and payments; the management of Government assets; the management of Government debt; the performance of the audit committees; and determining the abandonment of claims and write off of public money and stores; accounting for classified expenditure; virement; and unexpended funds and multi-year expenditure commitments. Regulations made under this section may prescribe for a contravention of any of the provisions of the regulations, of a fine not exceeding five hundred currency points, or for a term of imprisonment not exceeding four years, or both. A statutory instrument made under this Act shall be laid before Parliament as soon as possible after its publication in the gazette. Parliament may by resolution annul a statutory instrument laid before it by the Minister under subsection (4). The Minister may, with a resolution of Parliament, make a statutory instrument which has...

Section Amendment of the Bank of Uganda Act, Cap. 51, the Income Tax Act, Cap. 340, the Interpretation Act, Cap. 3 and the National Audit Act, 2008. Section The Bank of Uganda Act is amended— The Income Tax Act is amended— in section 4 , by substituting for subsection (2) (e) the following— “(e) act as financial adviser to the Government;” in section 33 by inserting immediately after subsection (3) the following— “(4) The bank shall not guarantee a payment to any person on behalf of Government or make an advance to Government or to any person on behalf of Government, without the prior approval of Parliament.” in section 89A by substituting for the definition of “petroleum revenue” the following— “ “tax” means tax charged on income derived by a person from petroleum operations;” and by substituting the reference to “petroleum revenue”, with a reference to “tax”. The Interpretation Act is amended in section 7 by substituting for sub section (2), the following— (2) A reference to the “treasury” shall be construed as a reference to the Ministry responsible for finance. Section 19 of the National Audit Act, 2008 is amended by substituting for “nine months” appearing in subsection (2) th...

Section Amendment of Schedules Section The Minister may, by statutory instrument, with the approval of Cabinet, amend Schedules 1 and 6 to this Act. The Minister may by statutory instrument amend Schedules 2, 3, 4 and 5 to this Act. A statutory instrument made under sub section (2) shall come into force after it is laid before Parliament.

Section Repeal of Public Finance and Accountability Act, 2003 Section The Public Finance and Accountability Act, 2003 is repealed.

Section Transitional provisions Section Any loan raised by the Government under the Public Finance and Accountability Act, 2003 and in respect of which any liability is subsisting immediately before the commencement of this Act shall be deemed to be a loan raised under this Act, notwithstanding that the amount of the loan or any obligation undertaken by the Government in respect of the loan exceeds any limitation imposed by this Act. All bills, bonds and other securities issued under the Public Finance and Accountability Act, 2003 and subsisting immediately before the commencement of this Act, shall continue in effect and be binding in the same manner and to the same extent as if they were issued under this Act. A state enterprise or a public corporation whose financial year is not in accordance with the financial year in this Act, shall within three years after the commencement of this Act, align the financial year with the financial year in this Act.

Section Collection and deposit of revenue and retention of revenue Section The revenue collected or received by a vote, state enterprise or public corporation under subsection (1) shall be— A vote, state enterprise or public corporation shall retain revenue collected or received, where the revenue— Revenue shall not be collected or received by a vote, state enterprise or public corporation, except where the vote, state enterprise or public corporation is authorised by an Act of Parliament to collect or receive revenue. paid into and shall form part of the Consolidated Fund; or receivable into a public fund established for a specific purpose where this is authorised by an Act of Parliament. is in the form of levies, licences, fees or fines and the vote, state enterprise or public corporation is authorised through appropriation by Parliament to retain the revenue; is a monetary grant exempted by the Minister under section 44 . Notwithstanding subsection (3), any revenue received by a vote, state enterprise or public corporation in the form of fines or fees, which is refundable at a future date on fulfillment of specified conditions, shall not form part of the Consolidated Fund and sh...

Section The Consolidated Fund Section All revenues or other money raised or received for the purpose of the Government, shall be paid into and shall form part of the Consolidated Fund except the revenue specified in section 29 (2) (b) and (3). Dividends due to Government shall be paid into the Consolidated Fund without any deductions. For the avoidance of doubt, revenue raised or received for the purpose of the Government, does not include money received on deposit or money held on trust by or under the control of court, an officer of court, the Public Trustee, the Attorney General or money held on trust by any other public officer for any purpose other than the purposes of the Government.

Section Grants of credit on the Consolidated Fund Section A grant of credit issued under subsection (1) shall be for the funds that are payable for— services to be rendered during a financial year where the funds are— The Minister shall on the advice of the Accountant General, request the Auditor-General to issue a grant of credit on the Consolidated Fund. statutory expenditure, during a financial year; and authorized by an Appropriation Act or Supplementary Appropriation Act; or required for investment.

Section Withdrawals from the Consolidated Fund Section The Minister shall issue a warrant for expenditure that is— Money contained in the Consolidated Fund shall not be withdrawn except upon the authority of a warrant issued by the Minister, to the Accountant-General. The Minister shall not issue a warrant under subsection (1) except where a grant of credit is issued by the Auditor-General under section 31 . authorised for the financial year during which the withdrawal is to take place by an Appropriation Act or a Supplementary Appropriation Act; a statutory expenditure; for repaying money received in error by the Consolidated Fund; or for paying sums required for an advance, refund, rebate or drawback where the payment of the advance, refund, rebate or drawback is provided for in this or any other Act. The Minister may suspend, withdraw, limit or place conditions on a warrant under this section where the Minister determines that it is necessary due to a financial exigency or that it is in public interest to do so.

Section Bank account management Section The Secretary to Treasury shall prescribe the framework within which votes shall conduct their banking and cash management activities. A bank account shall not be opened to receive or spend public money without written authority of the Accountant General. A local government shall not open a bank account without the written authority of the Accountant General. A request from another vote to a local government to open a bank account shall be made upon clearance, in writing, by the Accountant General. A bank account shall be managed by a vote in accordance with the terms and conditions the Accountant-General may determine. For the avoidance of doubt, the Bank of Uganda shall be the depository of cash for the recurrent and development operations of the votes. The Accountant General may authorise a vote to open a bank account in a financial institution. The Accountant General shall regulate the operation of a bank account of a vote and may suspend or close a bank account if he or she deems it necessary in public interest. An Accounting Officer shall notify the Accountant General in writing of the closure of a bank account under his or her control,...

Section Asset management Section In this section— An Accounting Officer shall be responsible for the management of the assets and the inventories of the vote. Every vote shall, using the format prescribed by the Accountant-General, keep a register of the assets and the inventories of the vote. An Accounting Officer shall cause the assets and the inventories of a vote to be inspected regularly and for written reports on the general condition of the assets and inventories and the storage facilities for the inventories, to be made regularly. The Accountant General shall, after the close of business on the last working day of each financial year, or before the start of business on the first day of a financial year, appoint a Board of Surveys for each vote, to survey the assets of the vote, for the preceding financial year. The Board of Surveys shall comprise at least two public officers, none of whom shall have any direct responsibility for the assets to be surveyed. An Accounting Officer shall not pledge or otherwise encumber the land or any other asset of a Vote without the permission of Parliament. Where a vote requires to acquire an asset by lease or hire purchase or to acquire a u...

Section Abandonment of claims and write off of public money and stores Section The Minister shall, within three months after the end of a financial year table before Parliament a report detailing— Where the Minister seeks to abandon or remit any claim by or on behalf of the Government, or any service to the Government or to write off a loss of, or a deficiency in public money or public resources, the Minister shall seek the approval of Parliament. The approval referred to under subsection (1) shall be by a resolution of Parliament, which shall specify the amount authorised for each abandonment or write off and the total sum authorised to be written off or abandoned. Notwithstanding subsection (1), the Minister may, without the approval of Parliament, abandon and remit any claims by or on behalf of the Government, or any service to the Government and write off a loss of, or a deficiency in public money or public resources, where the amount of the loss or deficiency does not exceed ten million shillings. The Minister may surcharge a public officer for a loss of, or a deficiency in public money or public resources, not exceeding ten million shillings. the measures aimed at controlling...

Section Authority to raise loans Section For the purposes of subsection (1), the Minister may raise a loan— Subject to the Constitution, the authority to raise money by loan and to issue guarantees for and on behalf of the Government shall vest solely in the Minister and no other person, public corporation, state enterprise or local government council shall, without the prior approval of the Minister, raise any loan, issue any guarantee, or take any other action which may in any way either directly or indirectly result in a liability being incurred by the Government. to finance a budget deficit; for the management of a monetary policy; to obtain foreign currency; for on-lending to an approved institution; or for defraying an expenditure which may lawfully be defrayed. The Minister may raise a loan by issuing Government bills, bonds or stock or using any other method the Minister may deem expedient, including a fluctuating overdraft. The value of Government bills, bonds or stocks issued in a financial year to raise a loan in subsection (2), except a loan specified in sub-section (2)(b) or a loan raised through the issuance of securities shall not exceed the value indicated in respec...

Section Repayment, conversion and consolidation of loans Section The Minister may— repay any loan prior to the redemption date of that loan; convert the loan into any other loan; or consolidate two or more loans into an existing or new loan. For the purposes of subsection (1), the Minister shall where necessary, seek the approval of the lender and Parliament.

Section Expenses of loans Section The expenses of, and incidental to the raising of a loan and the issue or management of any money raised under section 36 shall be a charge on the Consolidated Fund, or if the Minister directs, shall be payable out of the principal money raised.

Section Authority to guarantee loans Section The Minister, may, where he or she is satisfied that it is in the public interest, in the manner and on conditions he or she may think fit, with the approval of Parliament, on behalf of the Government, guarantee the repayment of the principal money and the payment of the interest and the other charges on a loan raised within or outside Uganda by— The Minister shall, prior to guaranteeing a loan under subsection (1) determine that— A guarantee shall not exceed— a state enterprise; a local government council; any entity other than a local government council, which is required to be audited by the Auditor General under an Act of Parliament; or a private sector entity. the intended purpose of the loan is consistent with government policy and is in public interest; and the borrowing entity is capable of servicing the loan. the amount approved by Parliament in the Appropriation Act or Supplementary Appropriation Act of the financial year; or exceed the targets for guarantee specified in the Charter for Fiscal Responsibility. The Minister shall every financial year, table before Parliament, with the annual budget, a report of the existing guara...

Section Reimbursement of costs of a guarantee Section A reimbursement under subsection (1) shall include— Where the Minister guarantees a loan under section 39 , the state enterprise, local government council, other entity other than a local government council, which is required to be audited by the Auditor General under an Act of Parliament, or a private sector entity, for whose benefit that guarantee is given, shall reimburse the Government in the manner the Minister may direct. the money the Government paid to fulfill the guarantee; the expenses the Government incurred in relation to the guarantee; the interest or service charge in relation to that sum or money paid by the Government; and any other expenses, incurred by Government, as the Minister may determine. The money received under this section shall be paid into the Consolidated Fund.