Gov’t to reallocate REA Funds

Posted on: 
25 Aug 2021

Government intends is to  reallocate Shs792.15 billion from the Rural Electrification Agency (REA) and the Ministry of Science, Technology and Innovation to the Ministry of Energy and Mineral Development and State House respectively.

According to the State Minister for Finance Hon. Henry Musasizi, the existence and vote status of REA (Vote 123) was revoked under statutory instrument No. 29 of 2021 and its functions mainstreamed as a department, into Ministry of Energy and Mineral Development (Vote 017).

Musasizi adds that as per Article 113 of the Constitution, the President abolished the Ministry of Science, Technology and Innovation and transferred its functions to the Office of the President serviced by the State House Comptroller under Vote 002.

In April 2021, Parliament appropriated shs527.114 billon under Vote 123 of the Rural Electrification Agency and shs265.043 billion under Vote 023 of the Ministry of Science, Technology and innovation for financial year 2021/2022.
“Section 20 of the Public Finance Management Act 2015 provides that Parliament may by resolution authorize the Minister to reallocate funds from a vote to another vote where the functions of a vote are transferred to that other vote. In order to streamline the operations of Government, there is need to reallocate these monies,” Musasizi said.

He said this while moving a motion on Tuesday, 24 August 2021 to reallocate the funds.

Speaker Jacob Oulanyah who chaired the House referred the motion to the Parliament Budget Committee to scrutinize it and report back.
“This particular motion cannot be processed as is. The Budget Committee will examine it and come back with a report from the Chairperson. Thereafter, the Minister shall eloquently speak to the motion,” Oulanyah said.

While making budgetary allocations this year, Parliament appropriated shs676.47 billion to the Ministry of Energy and Mineral Development whereas shs410.235 billion was appropriated to State House for financial year 2021/2022.

The reallocation of the funds will now bring the 2021/2022 working budget for the Ministry of Energy and Mineral Development to shs1.2 trillion and that of State House to shs675.278 billon.