Delayed budget deliberations to weigh on implementation
The delay in debating the 2025/2026 fiscal year (FY) is likely to harm its implementation, the executive director of the Institute for Public Policy and Research (IPPR), Graham Hopwood has warned.
It follows an almost two-week delay on the part of the ministry of finance to share the budget documents with members of parliament following its tabling late March.
As a consequence, Hopwood said it was likely it will therefore also only pass the National Council where a second round of debates are meant to take place, by the end of May.
“It will have a negative effect on the implementation of the budget because the financial year has already started on 1 April. By the time the budget is passed by the National Council it may well be the end of May,” said Hopwood.
According to him, this had the effect that offices, ministries and agencies (OMA) have no clear rules in what their spending limits ought to be.
“This means that OMAs will not be operating on the new spending levels until then. Ideally, we should switch to passing the budget at the end of the calendar year so that the financial year starts on January 1 or February 1 at the latest,” Hopwood said.
“This would lead to more accurate spending of the budget and less likelihood that funds will be returned to the treasury unspent,” he added.
Clarity lacking
Swanu lawmaker Evalistus Kaaronda said the budget lacked clarity in terms of how the government would utilise money availed to it by finance minister, Ericah Shafudah.
“The Appropriation Bill consists only of one single page document with a list of amounts allocated to ministries and agencies. The ministerial budget statement lays out the thinking behind the amounts but does not define how the money will be raised, the risks involved and how each ministry will spend the allocated amounts,” Kaaronda said.
The lack of clarity was a further concern in light of the repayment of the US$750 million Eurobond which the government must redeem later this year.
“External borrowing, especially the Eurobond for instance, is due for pay later this year. What were the terms of borrowing and how do we reduce the appetite for borrowing? The mid-term review budget, the fiscal policy arrangements were not given together with the budget. Some of these are being electronically shared with us. We have not heard or received anything after the minister recalled what she shared with parliament,” Kaaronda said.
Ready to go
The ministry of finance for its part said it has availed all the relevant documents to allow debates to start around the budget later today.
“As you are aware the minister of finance tabled the budget duly upon the entry of the eighth Administration. Prior to that as well as subsequently much work has gone in to align the budget with the policy ambitions of new frameworks such as National Development Plan 6 whilst also providing to the new Members of Parliament the required informative briefs on various aspects thereto,” the ministry said.
“Now that these processes are almost exhausted the National Assembly gave notification to thus resume the Budget Debate on 8 April 2025. The ministry of finance is working to ensure that the National Assembly is fully prepared to resume the debate on 8 April 2025,” it added.
It follows an almost two-week delay on the part of the ministry of finance to share the budget documents with members of parliament following its tabling late March.
As a consequence, Hopwood said it was likely it will therefore also only pass the National Council where a second round of debates are meant to take place, by the end of May.
“It will have a negative effect on the implementation of the budget because the financial year has already started on 1 April. By the time the budget is passed by the National Council it may well be the end of May,” said Hopwood.
According to him, this had the effect that offices, ministries and agencies (OMA) have no clear rules in what their spending limits ought to be.
“This means that OMAs will not be operating on the new spending levels until then. Ideally, we should switch to passing the budget at the end of the calendar year so that the financial year starts on January 1 or February 1 at the latest,” Hopwood said.
“This would lead to more accurate spending of the budget and less likelihood that funds will be returned to the treasury unspent,” he added.
Clarity lacking
Swanu lawmaker Evalistus Kaaronda said the budget lacked clarity in terms of how the government would utilise money availed to it by finance minister, Ericah Shafudah.
“The Appropriation Bill consists only of one single page document with a list of amounts allocated to ministries and agencies. The ministerial budget statement lays out the thinking behind the amounts but does not define how the money will be raised, the risks involved and how each ministry will spend the allocated amounts,” Kaaronda said.
The lack of clarity was a further concern in light of the repayment of the US$750 million Eurobond which the government must redeem later this year.
“External borrowing, especially the Eurobond for instance, is due for pay later this year. What were the terms of borrowing and how do we reduce the appetite for borrowing? The mid-term review budget, the fiscal policy arrangements were not given together with the budget. Some of these are being electronically shared with us. We have not heard or received anything after the minister recalled what she shared with parliament,” Kaaronda said.
Ready to go
The ministry of finance for its part said it has availed all the relevant documents to allow debates to start around the budget later today.
“As you are aware the minister of finance tabled the budget duly upon the entry of the eighth Administration. Prior to that as well as subsequently much work has gone in to align the budget with the policy ambitions of new frameworks such as National Development Plan 6 whilst also providing to the new Members of Parliament the required informative briefs on various aspects thereto,” the ministry said.
“Now that these processes are almost exhausted the National Assembly gave notification to thus resume the Budget Debate on 8 April 2025. The ministry of finance is working to ensure that the National Assembly is fully prepared to resume the debate on 8 April 2025,” it added.
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