Uganda: Technical Assistance Report-Implementing the Public Financial Management Bill

IMF Staff Country Reports, September 15, 2017

Source details

Canonical URL: Uganda: Technical Assistance Report-Implementing the Public Financial Management Bill

This Technical Assistance Report discusses recommendations for implementing the Public Financial Management (PFM) Bill in Uganda.
The finalization of the PFM Bill has reached an advanced stage with Parliamentary approval expected in the coming months.
The IMF mission strongly recommends that the petroleum revenue management provisions in the Bill are revisited.
Key aspects to revisit include clearly defining the nature of the funds and its objectives, clarifying reporting arrangements, specifying specialist audit arrangements, limiting investment risks, and protecting against the Bill’s use as a development fund.

The PFM Bill is in advanced stages of finalization, with Parliamentary approval expected in the coming months.
Petroleum revenue management provisions require revision to avoid ambiguity and risks.
Current drafting leaves unclear:
- The nature of the funds created.
- The objectives of those funds.
- The reporting arrangements for petroleum revenues.
- The specialist audit arrangements applicable to petroleum revenue-related funds.
There is a risk that the Bill could be used as a development fund unless explicit safeguards are included.

Revisit the petroleum revenue management provisions in the Bill.
Clearly define the nature of the funds and their objectives.
Clarify reporting arrangements for petroleum revenue.
Specify specialist audit arrangements for petroleum revenue-related funds.
Enhance the Bill to ensure that investment risks are limited.
Include safeguards to protect against the Bill being used as a development fund.

Subject areas: Budget planning and preparation, Commodities, Fiscal accounting and reporting, Oil, Public financial management (PFM), Treasury Single Account.
Keywords as provided: aggregate TSA balance; Budget planning and preparation; CR; draft Bill; Fiscal accounting and reporting; fund; government; ISCR; Oil; petroleum revenue; Petroleum revenue; PFM Bill; project fund; Public Financial management Bill; revenue; revenue collection; rule; Treasury Single Account; TSA arrangement; TSA design; TSA head account; TSA principle; TSA structure.