Shs 75bn approved for merger of govt agencies

Minister of Public Service, Hon Muruli Mukasa (Photo/File)

Kampala, (UG): The Committee on Public Service and Local Government has recommended the provision of Shs79.3 billion in the Financial Year 2024/25 for merging government agencies.

The recommendation stems from a request for the funds by the Ministry of Public Service, which seeks to merge a myriad of government agencies and parastatals for efficiency.

“As a measure to reduce the high government public expenditures and redundancies and duplication of functions in Ministries, Departments and Agencies (MDAs), the Ministry of Public Service proposed to rationalise MDAs and the Shs79.3 billion is required to fully cater for the payment of gratuity, pension and severance packages for affected staff,” said Hon. Martin Ojara Mapenduzi, the chairperson of the committee.

Making a case for the proposed allocation before the Committee on Budget on Monday, January 15, 2024, MP Mapenduzi said the Shs79.3 billion is to cater for public servants affected by the rationalisation process.

The Budget Committee is receiving reports from different Sectoral Committees of Parliament on the National Budget Framework Paper for Financial Year 2024/25.

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“The committee recommends that the government fast tracks the mergers, mainstreaming and transfer of the agencies and report to Parliament before the end of the financial year,” Mapenduzi told the Budget Committee.

MPs on the Budget Committee, however, said a Bill on the rationalisations should have preceded the request for funds.

“Statistics should have been given about the issue of compensation. Looking at the required Shs79.3 billion, I propose that the Budget Committee should not look at this first, because we have a Bill we have not yet considered,” said MP Iddi Isabirye (NRM, Bunya County South).

Hon. Paul Omara (Indep., Otuke County) added that as per Parliament’s recommendation, the various Bills to handle the rationalisation process, which ought to have taken precedence before stipulating funding figures in the budget, have not been brought before the House.

“Is there an equivocal commitment from the Minister for Public Service that he will be in a position to bring all those various Bills before Parliament within the next four months?” Omara asked.

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Hon Mapenduzi committed to follow up the concerns with the Minister for Public Service.

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