Chapter 9

FINANCE

Article 152 General Taxation

(1) No tax shall be imposed except under the authority of Taxation an Act of Parliament.

(2) Where a law enacted under clause (1) of this article confers powers on any person or authority to waive or vary a tax imposed by that law, that person or authority shall report to Parliament periodically on the exercise of those powers, as shall be determined by law.

(3) Parliament shall make laws to establish tax tribunals for the purposes of settling tax disputes.

Article 153 Consolidated Fund

(1) There shall be a Consolidated Fund into which shall be paid all revenues or other moneys raised or received for the Fund purpose of, or on behalf of, or in trust for the Government.

(2) The revenues or other moneys referred to in clause (1) of this article shall not include revenues or other moneys-

(a) that are payable by or under an Act of Parliament, into some other fund established for a specific purpose; or

(b) that may, under an Act of Parliament, be retained by the department of Government that received them for the purposes of defraying the expenses of that department.

Article 154 Withdrawal from the Consolidated Fund

(1) No moneys shall be withdrawn from the Consolidated Fund except-

(a) to meet expenditure charged on the fund by this Constitution or by an Act of Parliament; or

(b) where the issue of those moneys has been authorised by an Appropriation Act, a Supplementary Appropriation Act or as provided under clause (4) of this article.

(2) No moneys shall be withdrawn from any public fund of Uganda other than the Consolidated Fund, unless the issue of those moneys has been authorised by law.

(3) No moneys shall be withdrawn from the Consolidated Fund unless the withdrawal has been approved by the Auditor General and in the manner prescribed by Parliament.

(4) If the President is satisfied that the Appropriation Act in respect of any financial year, will not or has not come into operation by the beginning of that financial year, the President may, subject to the provisions of this article, authorise the issue of moneys from the Consolidated Fund Account for the purposes of meeting expenditure necessary to carry on the services of the Government until the expiration of four months from the beginning of that financial year or the coming into operation of the Appropriation Act, whichever is the earlier.

(5) Any sum issued in any financial year from the Consolidated Fund Account under clause (4) of this article in respect of any service of the Government-

(a) shall not exceed the amount shown as required on account in respect of that service in the vote on account approved by Parliament by resolution for that financial year; and

(b) shall be set off against the amount provided in respect of that service in the Appropriation Act for that financial year when that law comes into operation.

Article 155 Financial Year Estimates

The President shall cause to be prepared and laid before Parliament in each financial year but in any case not later than the fifteenth day before the commencement of the financial year, estimates of revenues and expenditure of Government for the next financial year.

(2) The head of any self-accounting department, commission or organisation set up under this Constitution, shall cause to be submitted to the President at least two months before the end of each financial year, estimates of administrative and development expenditure and estimates of revenues of the respective department, commission or organisation for the following year.

(3) The estimates prepared under clause (2) of this article shall be laid before Parliament by the President under clause (1) of this article without revision but with any recommendations that the Government may have on them.

(4) At any time before Parliament considers the estimates of revenues and expenditure laid before it by or on the authority of the President, an appropriate committee of Parliament may discuss and review the estimates and make appropriate recommendations to Parliament.

(5) Notwithstanding the provisions of clause (1) of this article, the President may cause to be prepared and laid before Parliament-

(a) fiscal and monetary programmes and plans for economic and social development covering periods exceeding one year;

(b) estimates of revenue and expenditure covering periods exceeding one year.

(6) Parliament may make laws for giving effect to the provisions of this article.

Article 156 Appropriation Bill

(1) The heads of expenditure contained in the estimates, other than expenditure charged on the Consolidated Funds by this Constitution or any Act of Parliament, shall be included in a bill to be known as an Appropriation Bill which shall be introduced into Parliament to provide for the issue from the Consolidated Fund of the sums necessary to meet that expenditure and the appropriation of those sums for the purposes specified in the bill.

(2) If in respect of any financial year it is found-

(a) that the amount appropriated for any purpose under the Appropriation Act is insufficient or that a need has arisen for expenditure for a purpose for which no amount has been appropriated by that Act; or

(b) that any moneys have been expended for any purpose in excess of the amount appropriated for that purpose or for a purpose for which amount has been appropriated by that Act, a supplementary estimate showing the sums required or spent shall be laid down before Parliament and in the case of excess expenditure, within four months after the money is spent.

(3) Where, in respect of any financial year, a supplementary estimate or supplementary estimates have been approved by Parliament in accordance with clause (2) of this article, a supplementary Appropriation Bill shall be introduced into Parliament in the financial year next following that financial year to which the estimates relate, providing for the appropriation of the sums so approved for the purposes specified in those estimates.

Article 157 Contingencies Fund

Parliament shall make provision for the establishment of a Contingencies Fund and shall make laws to regulate the operations of that fund.

Article 158 Offices the remuneration of which are charged on Consolidated Fund

(1) Where any salary or allowance of the holder of any office is charged on the Consolidated Fund, it shall not be altered to his or her disadvantage after he or she has been appointed to that office.

(2) Subject to the provisions of this Constitution, Parliament shall prescribe the offices, the salaries and allowances in respect of which are charged on the Consolidated Fund by this Constitution.

Article 159 Power of Government to borrow or lend

(1) Subject to the provisions of this Constitution, Government may borrow from any source.

(2) Government shall not borrow, guarantee, or raise a loan on behalf of itself or any other public institution, authority or person except as authorised by or under an Act of Parliament.

(3) An Act of Parliament made under clause (2) of this article shall provide-

(a) that the terms and conditions of the loan shall be laid before Parliament and shall not come into operation unless they have been approved by a resolution of Parliament; and

(b) that any moneys received in respect of that loan shall be paid into the Consolidated Fund and form part of that Fund or into some other public fund which is existing or is created for the purpose of the loan.

(4) The President shall, at such times as Parliament may determine, cause to be presented to Parliament such information concerning any loan as is necessary to show-

(a) the extent of the total indebtedness by way of principal and accumulated interest;

(b) the provision made for servicing or repayment of the loan; and

(5) Parliament may, by resolution, authorise the Government to enter into an agreement for the giving of a loan or a grant out of any public fund or public account.

(6) An agreement entered into under clause (5) of this article shall be laid before Parliament and shall not come into operation unless it has been approved by Parliament by resolution.

(7) For the purposes of this article, the expression "loan" includes any money lent or given to or by the Government on condition of return or repayment and any other form of borrowing or lending in respect of which-

(a) moneys from the Consolidated Fund or any other public fund may be used for payment or repayment; or

(b) moneys from any fund by whatever name called, established for the purposes of payment or repayment whether in whole or in part and whether directly or indirectly, may be used for payment or repayment.

(8) Parliament may by law exempt any categories of loans from the provisions of clauses (2) and

(3) of this article, subject to such conditions as Parliament may prescribe.

Article 160 Public Debt

(l) The Public Debt of Uganda shall be charged on the Consolidated Fund and other public funds of Uganda.

(2) For the purposes of this article, the Public Debt includes the interest on that debt, sinking fund payments in respect of that debt and the costs, charges and expenses incidental to the management of that debt.

Article 161 Central Bank of Uganda

(1) The Bank of Uganda shall be the central bank of Uganda and it shall be the only authority to issue the currency of Uganda.

(2) The authority of the Bank of Uganda shall vest in a Board which shall consist of a Governor, a Deputy Governor and not more than five other members.

(3) The Governor, the Deputy Governor and all other members of the Board shall-

(a) be appointed by the President with the approval of Parliament;

(b) hold office for a term of five years but shall be eligible for re-appointment.

(4) The office of Governor and Deputy Governor shall each be a public office and the Governor and Deputy Governor shall respectively be Chairperson and Deputy Chairperson of the Board.

(5) The Governor, the Deputy Governor or any other member of the Board may be removed from office by the President only for-

(a) inability to perform the functions of his or her office arising from infirmity of body or mind;

(b) misbehaviour or misconduct; or

Article 162 Functions of the Bank

(1) The Bank of Uganda shall-

(a) promote and maintain the stability of the value of the currency of Uganda;

(b) regulate the currency system in the interest of the economic progress of Uganda;

(c) encourage and promote economic development, and the efficient utilisation of the resources of Uganda through effective and efficient operation of a banking and credit system; and

(d) do all such other things not inconsistent with this article, as may be prescribed by law.

(2) In performing its functions, the Bank of Uganda shall conform to this Constitution but shall not be subject to the direction or control of any person or authority.

(3) Subject to the provisions of this Constitution, Parliament may make laws prescribing and regulating the functions of the Bank of Uganda.

Article 163 Auditor-General

(1) There shall be an Auditor-General who shall be appointed by the President with the approval of Parliament and whose office shall be a public office.

(2) A person shall not be appointed Auditor-General unless that person-

(a) is a qualified accountant of not less than fifteen years' standing; and

(b) is a person of high moral character and proven integrity.

(3) The Auditor-General shall-

(a) audit and report on the public accounts of Uganda and of all public offices including the courts, the central and local government administrations, universities and public institutions of like nature, and any public corporation or other bodies or organisations established by an Act of Parliament; and

(b) conduct financial and value for money audits in respect of any project involving public funds.

(4) The Auditor-General shall submit to Parliament annually a report of the accounts audited by him or her under clause (3) of this article for the financial year immediately proceeding.

(5) Parliament shall, within six months after the submission of the report referred to in clause (4) of this article, debate and consider the report and take appropriate action.

(6) Subject to clause (7) of this article, in performing his or her functions, the Auditor-General shall not be under the direction or control of any person or authority.

(7) The President may, acting in accordance with the advice of the Cabinet, require the AuditorGeneral to audit the accounts of any body or organisation referred to in clause (3) of this article.

(8) The salary and allowances payable to the Auditor-General shall be charged on the Consolidated Fund.

(9) The accounts of the office of the Auditor-General shall be audited and reported upon by an auditor appointed by Parliament.

(10) The Auditor-General may be removed from office by the President only for-

(a) inability to perform the functions of his or her office arising from infirmity of body or mind;

(b) misbehaviour or misconduct; or

Article 164 Accountability

(1) The Permanent Secretary or the accounting officer in charge of a Ministry or department shall be accountable to Parliament for the funds in that Ministry or department.

(2) Any person holding a political or public office who directs or concurs in the use of public funds contrary to existing instructions shall be accountable for any loss arising from that use and shall be required to make good the loss even if he or she has ceased to hold that office.

(3) Parliament shall monitor all expenditure of public funds

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