Gov’t Agrees on Merger Plan for 33 Entities to Cut Costs

Summary:

• President Museveni and the NRM caucus have agreed to merge and streamline 33 government entities during a meeting at State House Entebbe. They plan to support rationalization through sector-specific legislation in Parliament, following the rejection of a comprehensive bill last year.

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President Yoweri Museveni and the National Resistance Movement (NRM) parliamentary caucus have devised a strategy to consolidate and streamline a total of 33 government entities. This consensus was reached during a meeting at State House Entebbe on Friday, February 2, presided over by Museveni, the Chairman of NRM.

The purpose of the meeting was to deliberate on the rationalization of government agencies and public expenditure. Denis Obua, the Government Chief Whip and caucus chairperson, issued a brief statement confirming their resolution to endorse the rationalization of agencies and public spending through the enactment of sector-specific legislation in Parliament.

This decision follows extensive discussions among Members of Parliament who had thoroughly reviewed and internalized President Museveni’s keynote address in his capacity as the party’s national chairman. Notably, last year, Parliament, led by Speaker Anita Among, rejected the Rationalization of Government Agencies (Repeals and Amendments) Bill, 2023. The proposed bill aimed to either eliminate or reassign the 33 agencies to their respective ministries as a long-term solution to the unsustainable costs of public administration and wasteful expenditure.

Denis Obua emphasized that the rejection prompted the caucus to support the rationalization plan sector by sector, acknowledging the distinct nature of each affected entity created by separate Acts of Parliament and scrutinized by different sectoral committees.

On Friday, the caucus expressed awareness of the strategic importance of rationalizing government agencies and public expenditure. They committed to supporting the government’s plan after receiving a presentation on the rationalization process from the Minister of Public Service.

The government’s effort to rationalize its agencies has faced resistance, resulting in extensions of the plan. Initiated in response to a September 10, 2018, Cabinet decision to merge or collapse numerous agencies and commissions, the process has led to layoffs and petitions from affected workers. The government aims to reduce costs and enhance efficiency.

In the latest audit report presented to Parliament for the financial year ending June 30, 2023, Auditor General John Muwanga highlighted the imprudent use of supplementary budgets. Uganda’s total public debt was reported at sh96.168 trillion, growing at a rate surpassing the gross domestic product (GDP). The report warned of potential unsustainability in servicing public debt in the short and medium term if not addressed promptly.