In order to strengthen domestic revenue mobilization, streamline tax procedures, and enhance fiscal discipline ahead of the 2025/26 financial year, President Yoweri Museveni has assented to nine bills. Signed into law are bills that include the VAT, Income, and External Trade Amendment Acts.

Meanwhile, the Ministry of Finance, Planning, and Economic Development has issued revised guidelines for the issuance of Certificates of Financial Implications to enhance transparency in public finance management.

Uganda’s legal and policy framework requires all legislative and policy proposals submitted to Cabinet or Parliament to be accompanied by a certificate of financial implications (CFI), guided by the Public Finance Management Act (Cap 171), the Rules of Procedure of Parliament, and the Cabinet Secretariat’s guidelines.

A Certificate of Financial Implication (CFI) outlines the potential financial impact of a bill on the economy and is a mandatory requirement for all bills, whether government-sponsored or privately introduced, before they can proceed through the legislative process.

This is done to ensure that government decisions are fiscally responsible, developmentally aligned, and supported by credible evidence.

The original CFI guidelines were issued in 2015, and after nearly a decade of implementation, the ministry deemed that it became clear that the framework required significant strengthening.

Until now, the CFI essentially provided an estimate of the revenue and expenditure changes that a proposed bill is likely to cause over a period of at least two years after its enactment.

Ramathan Ggoobi, the Permanent Secretary and Secretary to the Treasury says that in the evaluation process, stakeholders raised several concerns, like reported delays in the issuance of certificates, in part arising from the lack of or insufficient information provided to facilitate preparation of the certificate.

Other concerns were inadequate capacity to assess the impact of policy and legislative proposals on the economy and a lack of clarity on the specific roles and responsibilities of key stakeholders in the review and approval processes.

The evaluation also revealed a lack of a reliable database to track the status of submissions by MDAs.

“The revised guidelines are therefore intended to address the concerns of the stakeholders,” he said.

The amendments present a framework that the government will apply in assessing the financial and socioeconomic implications of legislative and policy proposals.

The guidelines introduce an institutional framework to strengthen consultations amongst relevant stakeholders and capacity building where it is required.

It is also envisaged that they will serve as the foundation for the automation of the business processes for the preparation, review, and issuance of Certificates of Financial Implications to better manage the large volumes of information generated during the process.

In the revised guidelines, a comprehensive review process has been introduced, including assessment of budget impact, economic and distributional effects, and fiscal risks.

Lead times have also been clearly defined.

In addition to the strengthened institutional framework, the revised guidelines introduce mandatory stakeholder impact assessments.

All proposals must now identify and evaluate the impact on various social groups, especially vulnerable populations, small and medium enterprises (SMEs), and regional communities, ensuring that policy decisions are not only fiscally responsible but also socially inclusive.

The amendment also seeks to ensure that all MDAs align their policy and legislative submissions with the new framework.

“These reforms mark a significant milestone in Uganda’s journey towards more transparent, accountable, and evidence-based public financial management.

Policy, regulatory, and legislative proposals have the potential to affect resource allocations across programs irrespective of the initiating MDA.

For purposes of facilitating transparency and accountability for financial and economic implications at all levels within the programmatic planning and budgeting frameworks adopted by the government, three committees shall be established.

There will be a Regulatory Fiscal Assessment Committee at the MDA level to ensure adequate coordination and consultations in the preparation of relevant submissions to the Ministry for purposes of issuance of Certificates of Financial Implications and Letters of Financial Clearance.

There will also be a Regulatory Fiscal Assessment Committee within the framework of the Programme Working Group to approve the submissions from the MDAs.

The Project Preparation Committee for the Programme Working Group can adopt this role.

A Regulatory Fiscal Assessment Committee at the Ministry of Finance, Planning and Economic Development will be formed to consider Statements of Financial Implications from MDAs in line with the guidelines.