No financial rule for petroleum fund – Auditor General.
The just released December 2019 audit report notes that the lack of financial rule to guide the usage of money from the petroleum fund impacts on government monitoring and management of public fund.
The Auditor General John Muwanga lamented while handing over the Audit report to Speaker Rebecca Kadaga at Parliament.
The Auditor General revealed that at the beginning of the year, the Fund had an opening balance of Shs457.5Bn and it received revenue totaling to Shs56.7Bn during the year. A sum of Shs200Bn was transferred to the Consolidated Fund for budget support as part of domestic financing for 2018/2019.
However he says there was no explicit disclosure of the infrastructure and development projects that would be funded from the petroleum revenues and therefore he could not confirm whether the amount was used to finance infrastructure development of Government.
Muwanga warned that the lack of a fiscal rule can lead to undesirable spending and investment decisions by Government that may not be economical, especially in times of economic instability.