The Ministry of Defence and Veteran Affairs has requested for a supplementary budget totaling to Shs369.9bn just a few weeks to the end of the 2017/18 Financial Year (FY).
The Uganda people’s Defence Force (UPDF) team led by Bright Rwamirama, State Minister for Veteran Affairs on Tuesday appeared before Parliament’s Budget Committee to defend the supplementary budget.
The Military is seeking for Shs247bn in classified expenditure.
Information tabled before Parliament also indicates that Shs60.9bn is required to cater to purchase meals, drinking water and dry ration for operational troops across the country.
The funding will also be used to feed recruits at training schools, feeding of soldiers during rehearsals for parade at national ceremonies, patients and inmates in Military barracks.
Rwamirama told MPs that for the last five years, the food item has consistently been receiving the same budgetary allocations of Shs35bn, yet the item has been affected by inflation which triggered fluctuation in food prices, fluctuation inforeign exchange for dry ration purchases, increased feedable strength and training over the years.
He added that in 2016/2017, the army incurred arrears on the food item amounting to Shs26.6bn and these arrears were settled in this Financial Year (2017/18) through the Ministry’s food budget allocation and this left the Ministry with only Shs9bn on food budget against a food consumption rate of Shs84.9bn this Financial Year.
The ministry in January 2018 received a supplementary funding of Shs60.9bn and this will be used to clear all the unpaid food bills since August 2017.
The Army is also seeking Shs22.3bn to cater for the fuel requirements for the operational activities in the Divisions, transportation of troops and logistics, SFC activities, ceremonies and army shop operation.
The Ministry revealed that in 2016/2017, the Ministry incurred arrears on this item amounting to Shs9.3bn due to underfunding of the item, with these arrears having been partly settled from the budget allocation of Shs8bn for fuel in 2018/2019, which left unpaid arrears at Shs1.3bn.
However, the arrears increased this financial with fuel amounting to Shs25.9bn, thus creating a budget shortfall of Shs27.3bn.
In January 2018, the Ministry received a supplementary of ShsShs5bn to clear some of these arrears, reducing the shortfall to Shs22.3bn and the institution plans to use the supplementary to settle the unpaid fuel bills for land forces.
Fuel companies owed by the ministry include Total (Shs7.562bn, Vivo Energy (Shs5.60bn), Mogas (Shs1.43bn), Hared (Shs6.93bn), City Oil (Shs522.89m), Oil Libya (Shs189.78m) and Hass Ltd (Shs4.5bn).
The Ministry also has arrears of fuel for air force that will account for Shs13.1bn to facilitate pilot training, routine flights, VIP travels, ceremonies, running of ground support equipment operations, with the Ministry saying that over the years, the aircraft fleet has increased without a commensurate increase in the fuel budget.
In the breakdown, the Supplementary budget of Shs13.1bn will be utilised to settle unpaid fuel bills of Hared petroleum amounting to Shs12.5bn and Shs506M to Total Uganda.
Despite the fact that the Ministry undertook procurements worth Shs36.6Bn aimed at providing basic clothing items and accessories to the troops, only Shs12Bn provided which left a funding gap of Shs24.6bn.
The Army is also seeking for Shs2bn in medical products to settle bills incurred on treatment of UPDF patients in private hospitals especially Nakasero Hospital with the item having received Shs1.2bn in 2017/2018, to cater for treatment in local-non-Miltary hospitals against a funding requirement of Shs6.2Bn.
In January 2018, this item received a supplementary funding of Shs3bn that was also utlised to pay medical bill, leaving a total of Shs3.8bn unpaid and the supplementary funding of Shs2bn will partly settle this debt.
