The State of the Uganda’s Petroleum Fund.
“This year there is no allocation, there isn’t money in the Petroleum Fund, we appropriated it last year, what was there so we can’t get what isn’t there.” This was statement by Hon. David Bahati ( The state Minister of Finance ) while appearing before the Budget committee to present the budget frame work for FY 2020/21.
The Petroleum Fund (Fund) is established by section 56 of the Public Finance Management Act (PFMA), 2015 and the Fund serves as a depository for all revenues accruing to government from petroleum and related activities. Disbursements from the Fund are through an appropriation to either the Consolidated Fund or to the Petroleum Revenue Investment Reserve Account.
The Minister told the Committee that Fund value as at 30th June 2O19 was UGX 31I, 132,323,454 . He noted that the reduction in the Fund value from UGX 470.4 billion reported in June 2019 to the current UGX 31 1.1 billion is due to;-
- Withdrawals from the Fund In line with Section 59 of the PFMA 2Ol5 and the Appropriation Act, a sum of UGX 200 bi11ion UGX 148 bi11ion and USD 13.95 million from the Petroleum Fund UGX and USD accounts respective$ was transferred from the Petroleum Fund to the Uganda Consolidated Fund (UCF) to fund the Financial year 20181/2019 Budget.
- Reduction in the revenues collected from UGX 62.988 billion (30th , June 2018) to UGX 56.74 billion (30th June 2019)
- Foreign exchange loss on funds from Petroleum Authority of Uganda amounting to UGX 120.8m. This was due to the appreciation of UGX against the USD at the time the funds were received on the Petroleum Fund USD account.
The minister informed the Committee that during the Period ended 30th June 2019, URA collected petroleum related taxes worth UGX 51.O6 billions of which UGX 6.74 billion was Income tax, UGX 1.02 billion VAT and 43.41 billion as Withholding tax. The amount of UGX 6.45 billion was yet to be remitted to the Fund by 30tn June 2019.