Government Rejects UNBS Proposal to Retain and Spend Non-Tax Revenue at Source.

Government has ruled out allowing the Uganda National Bureau of Standards to retain and spend its non-tax revenue at source, maintaining that all collections must be remitted to the Consolidated Fund in accordance with the Public Finance Management Act.

The government has rejected a proposal by the Uganda National Bureau of Standards (UNBS) to retain and spend its non-tax revenue (NTR) at source, insisting that all collections must continue to be remitted to the Consolidated Fund before being appropriated by Parliament.

Finance Minister Henry Musasizi made the government's position clear on Thursday while appearing before Parliament's Committee on Tourism, Trade and Industry to present UNBS' budget performance and the utilisation of its non-tax revenue collections.

Musasizi told legislators that UNBS, as a government vote, is legally required under the Public Finance Management Act to remit all non-tax revenue collected to the Uganda Revenue Authority (URA) for transfer to the Consolidated Fund.

"UNBS has Vote status and should comply with the requirements of the Public Finance Management Act to remit all revenue collections to the Consolidated Fund without spending at source," Musasizi told the committee.

The minister's remarks come amid discussions over whether the national standards body should be allowed to retain part of the revenue it generates to finance its operations directly.

Defending the current financing framework, Musasizi said government has consistently funded UNBS through the national budget despite temporary fiscal pressures experienced during and after the COVID-19 pandemic.

He told the committee that Parliament approved Shs65.04 billion for UNBS in the 2021/22 financial year, with the allocation rising to Shs133.83 billion in the 2025/26 financial year.

He added that annual budget releases to the agency have ranged between 94 and 100 per cent of the approved allocations.

According to Musasizi, although the bureau experienced reduced allocations during the 2022/23 to 2024/25 financial years because of broader economic constraints linked to the pandemic, government subsequently restored and significantly increased its funding.

He said the current allocation of Shs133.83 billion is higher than the bureau's annual non-tax revenue collections, which increased from Shs60.74 billion to Shs87.68 billion over the past five financial years.

Musasizi said the figures demonstrate government's continued commitment to strengthening Uganda's national quality infrastructure and standards regime.

The minister also defended reforms introduced in the 2017/18 financial year requiring all government entities to collect non-tax revenue through URA rather than retaining it at source.

He said the reforms were aimed at reducing revenue leakages, strengthening public financial management and improving accountability and transparency in the handling of public resources.

Instead of seeking permission to spend revenue directly, Musasizi advised UNBS to prepare comprehensive, well-costed strategic plans aligned to its statutory mandate so that government can adequately consider its funding requirements during the budgeting process.

The Committee on Tourism, Trade and Industry is reviewing UNBS' financial performance, budget execution and utilisation of non-tax revenue as part of its parliamentary oversight of the agency's operations.