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Finance Ministry Warns Gov’t Against Creating New Administrative Units

Uganda’s Ministry of Finance, Planning and Economic Development  has warned Parliament against creating new administrative units in the next Financial Year on grounds that there will be no room for flexibility to reallocate funds from one entity to  another.

Kenneth Mugambe, the Director in charge of Budget at Finance Ministry made the remarks  while interfacing with the Budget Committee chaired by Kachumbala county MP, Patrick Isiagi.

Mugambe said that Parliament should stop creating unplanned for administrative because they don’t have resources to run them.

However, members sitting on the Committee including West Budama North MP-Richard Okoth Othieno, Kabula County’s James Kakooza and Kasilo County MP-Elijah Okupa faulted Mugambe and Finance Ministers for not telling the them to the cabinet because it’s the one that approves frequently approves creation of new administrative units including districts, cities and municipalities among others .

The committee members asked Finance Ministry not to always  grant the certificate of financial implications whenever a new administrative unit is created without budget.

Mugambe said that they are going to phase out projects which are not critical to supporting the NDP -3 .

He said that the projects which are not critical in regard to the NDP-3 strategy won’t be funded and resources will be directed to critical projects .

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