PUBLIC FINANCE MANAGEMENT ACT, 2015.

(b) 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 authorisation 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 Government plan of revenue and expenditure for a financial year;

"budgeting" means the process by which Government sets levels to efficiently collect revenue and allocate the spending of resources among all sectors to meet national objectives;

"capital expenditure" means any expenditure for the creation or acquisition of a fixed asset, inventory or other valuable physical stock;

"classified expenditure" means the expenses and commitments incurred by an authorised agency for the collection and dissemination of information related to national security interests and includes the cost of procurement and maintenance of the related assets;

"commitment" in reference to a vote, means entering into a contract or other binding arrangement which creates a future expense or liability;

"Consolidated Fund" means the Consolidated Fund established under article 153 of the Constitution;

"currency point" has the value assigned to a currency point in Schedule 1;

"expenditure" means a non repayable and a non repaying payment by Government, whether requited or unrequited and whether for current or capital purposes;

"financial year" means a period of 12 months commencing on the 1st"> day of July and ending on the 30th"> day of June of the following year;

"generally accepted accounting practice" means accounting practices and procedures recognised by the institute of Public Accountants of Uganda and approved by the Accountant General, as appropriate for recording and reporting the financial information of a vote;

"Government" means the central Government;

"Government debt" means a financial claim on the Government that requires payment by Government, of the principal, or the principal and the interest, to a creditor;

"inventories" means—

(a) assets in the form of materials or supplies to be consumed in the production process;

(b) assets in the form of materials or supplies to be consumed or distributed in the rendering of services; and

"investment" means an expenditure on the creation or acquisition of fixed assets, inventories, other valuable physical stocks or securities;

"Investment Advisory Committee" means the committee established under section 66;

"liability" means a liability measured in accordance with generally accepted accounting practice and includes a liability that is contingent on an uncertain future event depending on the circumstances of the case;

"medium-term" means a period of three to five years;

"Minister" means the Minister responsible for finance;

"Ministry" means the Ministry responsible for finance;

"National oil Company" means the company established under the Petroleum (Exploration, Development and Production) Act;

"non-oil revenue" means revenue derived from a source other than petroleum;

"petroleum revenue" means tax paid under the Income Tax Act on income derived from petroleum operations, Government share of production, signature bonus, surface rentals, royalties, proceeds from the sale of Government share of production, any dividends due to Government, proceeds from the sale of Government's commercial interests and any other duties or fees payable to the Government from contract revenues under a petroleum agreement;

"Petroleum Fund" means the fund established under section 56;

"Petroleum Revenue Investment Reserve" means the investment reserve referred to in section 62;

"public corporation" means—

(a) an authority established by an Act of Parliament other than a local government, which receives a contribution from public funds, or the operations of which may, under the Act establishing it or any Act relating to it, impose or create a liability upon public funds; and

(b) any public body which in a financial year receives any income from public funds;

"public debt" includes the interest on that debt, sinking fund payments in respect of that debt and the costs, charges and expenses incidental to the management of that debt;

"public money" means money received by a vote or collected for a purpose of Government and includes revenue from taxes and government charges, proceeds of loans raised on behalf of the Government, grants received by the Government, recoveries of loan principals, redemption and maturity of investments, sale or conversion of securities, sale proceeds on Government property, other recoveries, or other funds for the purposes of Government and any other money that the Minister or the Secretary to the Treasury may direct to be paid into a public or official bank account;

"public officer" means any person holding or acting in an office in the Public Service;

"public resources" includes public money and the stores, property, assets and the loans and investments of Government;

"sector" means a group of institutions or votes that have common functions, objectives and mandates;

"secretary to the Treasury" means a person appointed as such under section 11;

"state enterprise" means—

(a) a body corporate established under any Act other than the Companies Act or a local government council; and

(b) a company registered under the Companies Act in which the Government or a state enterprise is able to—

(i) control the composition of the board of directors of the company;

(ii) cast, or control the casting of more than 50 percent of the maximum number of votes that might be cast at a general meeting of the company; or

(ii) control more than 50 percent of the issued share capital of the company, excluding any part of that issued share capital that carries no right to participate beyond a specified amount in a distribution of either profits or capital;

"statutory expenditure" means expenditure charged on the Consolidated Fund by the Constitution or by an Act of Parliament, but does not include the expenditure of money appropriated or granted by an Appropriation Act or a supplementary Appropriation Act;

"subvention" means the appropriation of funds to a vote for onward transfer to an entity which is not a vote;

"supplementary Appropriation Act" means an Act passed in accordance with Article 154(3) of the Constitution, the purpose of which is to supplement an appropriation granted by an Appropriation Act;

"Treasury memorandum" means an action report by the Minister detailing the actions taken on the recommendations of Parliament arising out of the report of the Auditor General;

"virement" means the reallocation of funds within the budget of a vote, from a budget line to another budget line;

"vote" means an entity for which an appropriation is made by an Appropriation Act or Supplementary Appropriation Act.

PART II
MACRO ECONOMIC AND FISCAL POLICIES.

4. Development of fiscal policy.

(1) The objective of the Government, when setting fiscal objectives within the macro economic framework, shall be to ensure macro economic stability and economic growth having regard to the National Development Plan.

(2) The fiscal objectives shall be based on the following principles—

(a) sufficiency in revenue mobilisation to finance Government programmes;

(b) maintenance of prudent and sustainable levels of public debt;

(c) ensuring that the fiscal balance, when calculated without petroleum revenues, is maintained at a sustainable level over the medium-term;

(d) management of revenues from petroleum resources and other finite natural resources for the benefit of current and future generations;

(e) management of fiscal risks in a prudent manner;

(f) consistency of the medium-term expenditure framework to the National Development Plan; and

(g) efficiency, effectiveness and value for money in expenditure.

(3) 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.

5. Charter for Fiscal Responsibility.

(1) The Minister shall, not later than three months after the first sitting of Parliament after a general election, submit to Parliament for approval—

(a) a Charter for Fiscal Responsibility which shall provide—

(i) 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;

(ii) 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);

(ii) a list of the sources of data to be used to report developments against the fiscal objectives required in subsection (1)(a)(i); and

(iv) 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 macro economic and fiscal data, assumptions, and projections provided in the economic and fiscal update referred to in subsection (1)(b); and

(b) an economic and fiscal update which shall be in accordance with the requirements of this section.

(2) The Minister shall publish the Charter for Fiscal Responsibility and the economic and fiscal update not later than one month after approval by Parliament or such a time as may be determined by Parliament.

(3) The Minister may, using the principles of Fiscal Responsibility, update the Charter for Fiscal Responsibility.

(4) The Minister shall present to Parliament the updated Charter for Fiscal Responsibility.

(5) Parliament shall examine, and may approve, the Charter for Fiscal Responsibility.

(6) The Minister shall, within one week after approval by Parliament, publish the updated Charter for Fiscal Responsibility.

(7) The Charter for Fiscal Responsibility shall be in the format provided in Schedule 2.

6. Cabinet to adhere to the principles of fiscal policy.

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.

7. Deviations from objectives of the Charter for Fiscal Responsibility.

(1) 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.

(2) The Minister shall within 30 days after deviation, publish a report in the gazette and on the website of the Ministry.

8. Tax and revenue bills.

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.

9. Budget Framework Paper.

(1) 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.

(2) 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.

(3) 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.

(4) The Budget Framework Paper shall be in the format prescribed in Schedule 3.

(5) 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.

(6) The Minister shall, in consultation with the Equal Opportunities Commission, issue a certificate—

(a) certifying that the Budget Framework Paper is gender and equity responsive; and

(b) specifying measures taken to equalise opportunities for women, men, persons with disabilities and other marginalised groups.

(7) The Speaker shall refer the Budget Framework Paper to the relevant committee for consideration.

(8) Parliament shall review and approve the Budget Framework Paper by 1st"> February of the financial year preceding the financial year to which the Budget Framework Paper relates.

10. Establishment of Treasury.

(1) There is established the Treasury consisting of—

(a) the Minister;

(b) the Secretary to the Treasury;

(d) the other directorates responsible for economic and finance matters in the Ministry.

(2) For avoidance of doubt, the Minister shall be the head of the Treasury.

11. Appointment and functions of the Secretary to the Treasury.

(1) There is a Secretary to the Treasury appointed by the President on the recommendation of the Public Service Commission.

(2) The Secretary to the Treasury shall—

(a) advise the Minister on economic, budgetary, and financial matters;

(b) 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;

(c) promote and enforce transparent, efficient, and effective management of the revenue and expenditure and the assets and liabilities of votes;

(d) set standards for the financial management systems and monitor the performance of those systems;

(e) 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 recognised standards, in respect of its status and procedures;

(f) manage the Consolidated Fund and any other fund as may be assigned by the Minister;

(g) appoint or designate Accounting Officers in accordance with this Act, except that the secretary to the Treasury shall not appoint or designate a person an Accounting Officer where, according to the report of an Internal Auditor General or the Auditor General, that person has not accounted for the public resources or assets of the vote for a financial year;

(h) issue the annual cashflow plan of Government as a basis for commitment of expenditure by Accounting Officers;

(i) mobilise resources including assistance from development partners and integrate the funds into the planning, budgeting, reporting and accountability processes prescribed by this Act;

(j) monitor the financial and related performance of the votes;

(k) where necessary, create a vote;

(l) provide the framework for conducting banking and cash management for Government, local governments and the other votes governed by this Act;

(m) prepare the Treasury memorandum; and

(n) every three months, prepare for the Minister, a report on the execution of the annual budget by the Government.

(3) In the discharge of the functions in subsection (2), the secretary to the Treasury may—

(a) issue directives and instructions to Accounting officers;

(b) in writing, require an Accounting Officer or an Accounting Officer of a local government to supply any information that the secretary to the Treasury considers necessary for the purposes of this Act; and

(c) inspect during working hours, the office of a vote and gain access to any information the secretary to the Treasury may require, with regard to the money and records regulated by this Act.

(4) For the purposes of subsection (3)(c), the secretary to the Treasury may authorise a public officer to inspect the office of a vote.

12. Parliament to analyse policy issues.

(1) 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.

(2) 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.

PART III
BUDGET PREPARATION, APPROVAL AND MANAGEMENT.

13. Annual budget.

(1) The President shall cause to be prepared and laid before Parliament the proposed annual budget of Government for a financial year.

(2) The proposed annual budget shall be prepared in consultation with the relevant stakeholders.

(3) 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.

(4) 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 budget that falls within the jurisdiction of that sectoral committee.

(5) The annual budget shall be effective on the 1st"> day of July of each year.

(6) The annual budget shall be consistent with the National Development Plan, the Charter for Fiscal Responsibility and the Budget Framework Paper.

(7) The annual budget shall be accompanied by a certificate of compliance of the annual budget of the previous financial year issued by the National Planning Authority.

(8) The annual budget shall be based on sound analysis and forecasts of macro economic developments and fiscal prospects.

(9) The annual budget shall—

(a) set out the recent trends and developments on the indicators of the economy and provide forecasts of the indicators, for a period of five years;

(b) specify the period considered by the Minister to be appropriate for the planning of the fiscal policy of the Government;

(c) supply detailed information on recent fiscal developments and forecasts for the period determined by the Minister under paragraph (b) in respect of—

(i) revenues;

(ii) recurrent and capital expenditures;

(ii) borrowing and debt servicing;

(iv) contingent liabilities; and

(v) any other information in respect of assets and liabilities that may be considered appropriate by the Minister.

(10) The annual budget shall indicate—

(a) the financing estimates for the financial year to which the budget relates, including—

(i) the financing to be transferred from the Petroleum Fund to the Consolidated Fund;

(ii) the plans for domestic financing of the annual budget including borrowings by Government and the drawing down of Government deposits;

(iii) the plans for external financing of the budget in the form of borrowing and grants;

(iv) a plan for the government debt and any other financial liabilities for the financial year to which the annual budget relates;

(v) the plan for the guarantees to be issued in the financial year;

(vi) money recovered as a result of the recommendation of the report of the Auditor General; and

(vii) a plan for divestment of government assets;

(b) the expenditure estimates for the preceding financial year, the current financial year, and proceeding financial year;

(d) a statement of the tax expenditures of Government;

(e) the budgets of self accounting departments, commissions and organisations set up under the Constitution and the opinion of the Government on these budgets; and

(f) the grants to the local governments and any subventions for the financial year.

(11) The Minister shall present with the annual budget—

(a) the Appropriation Bill and any other bills that are necessary to implement the annual budget;

(b) a Treasury memorandum specifying the measures taken by the Ministry to implement the recomme

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