Kampala, Uganda | THE INDEPENDENT | Members of Parliament sitting on the Finance Committee have demanded for a comprehensive explanation on the fate of unspent balances that are returned to the consolidated fund.
In accordance with the Public Finance Management Act, 2015 all unspent balances as at 30th June are due to the consolidated fund.
The MPs quizzed the Accountant General today on what happens to this money given the fact that it is never declared during the budgeting process for the next financial year.
The MPs led by the Committee Chairperson Henry Musasizi representing Rubanda East observed that since the monies do not form part of the resource envelope they cannot be spent because all appropriations are authorized by parliament.
Jennifer Muhuruzi Bigirwa who represented the Accountant General noted that the returned funds form part of the consolidated fund reserves.
However the Vice Chairperson of the committee Joy Katali objected to her explanation noting that the ministry of finance has never declared these reserves to parliament.
Musasizi was also curious as to how the reserves that are not appropriated are lumped into the same account as the consolidated fund.
The ministry has been directed to return on Monday afternoon with a written explanation and also indicate the actual amount of money in the consolidated fund.