20 Mar 2024

Parliament has been told that the Ministry of Finance will tighten screws to improve budgeting processes and minimise unnecessary supplementary budgets.

Responding to debates on the Supplementary Appropriation 2022/2023 Bill, 2024 Bill number 5 of 2024, Finance Minister, Ms Peggy Serame said the ministry would put in place appraisal systems and further introduce a system with strong checks and balances that would verify whether money would be spent as intended.

While acknowledging that supplementary estimates were sometimes a budget management issue, she said it was evident that some ministries were unable to justify their budget.

Ms Serame also said some departments would also be capacitated because there were instances where it was evident that there were some gaps in their budgeting processes.

“In some instances we have called some departments to show them some gaps in their budget, while some are unable to handle huge budget. They have no capacity to do so” she said

Ms Serame said Public Finance Management Law was being crafted to give her powers to fully exercise her responsibilities to manage government finances.

She said finance ministry continued to receive money from underspent development budget with varying reasons.

Meanwhile Parliament approved the total supplementary budget amounting to over P2.5 billion from the Consolidated Fund.

Ms Serame said the supplementary budget was covered for under the Supplementary Appropriation Bill, to provide for the appropriation of the sums already approved not later than the end of the financial year.

She said the supplementary budget also constituted the amount spent in excess of the amounts already appropriated under the Consolidated Fund, but not included in the Appropriation (2022/2023) Act, 2022.

Out of the amount, about P1.7 billion was spent by nine ministries and two extra-ministerial departments and was included in the Supplementary Appropriation Bill, she explained.

This, the minister said constituted the amount spent in excess of the amounts already appropriated under the Consolidated Fund, but not included in the Appropriation (2022/2023) Act of 2022.

She said the ministries and departments covered were Parliament, State President, Agriculture, Trade and Industry, Local Government and Rural Development, Transport and Public Works, Communications, Knowledge and Technology, Lands and Water Affairs and Defence and Security.

“In accordance with Section 119 (4) of the Constitution, a Supplementary Appropriation Bill is required to cover this expenditure which was approved by a resolution of the National Assembly, but not included in the Appropriation (2022/2023) Act, 2022,” said Ms Serame. ends