UNBS bid to control its own revenue rejected

The government has rejected a proposal by the Uganda National Bureau of Standards (UNBS) to retain and spend its non-tax revenue at source.

Finance Minister Henry Musasizi delivered the decision before Parliament’s Committee on Tourism, Trade and Industry on Thursday. He made it clear that UNBS has no legal mandate to bypass the Consolidated Fund.

“UNBS has Vote status and must comply with the Public Finance Management Act by remitting all revenue collections to the Consolidated Fund without spending at source,” Musasizi stated.

The ruling effectively shuts down ongoing attempts by the national standards body to gain direct control over the billions it collects annually, a move UNBS had argued would ease operational pressures.

However, the government insists that allowing agencies to retain funds risks weakening financial discipline and accountability.

Musasizi defended the current system, emphasizing that all non-tax revenue must be collected through the Uganda Revenue Authority (URA) and centrally managed.

The minister pointed to consistent government funding as proof that UNBS does not need independent financial control.

Parliament approved shs65.04 billion for the bureau in the 2021/22 financial year, with allocations rising sharply to shs133.83 billion in the 2025/26 financial year.

Despite temporary budget constraints during the COVID-19 period, Musasizi said releases to UNBS have remained strong, averaging between 94 and 100 percent of approved budgets.

He further revealed that the bureau’s current funding now exceeds its own non-tax revenue collections, which grew from shs60.74 billion to shs87.68 billion over the past five years.

“These figures demonstrate the government’s commitment to strengthening the national standards regime,” he said.

Musasizi also defended reforms introduced in the 2017/18 financial year, which centralised non-tax revenue collection under URA.

He said the reforms were critical in sealing loopholes, curbing misuse of funds, and improving transparency across government entities.

Instead of pushing for financial autonomy, the minister advised UNBS to focus on developing clear, well-costed strategic plans aligned with its mandate to secure adequate funding through the national budget.

The parliamentary committee is currently scrutinising UNBS’ financial performance and revenue utilisation as part of its oversight role, amid broader concerns about efficiency and accountability in public institutions.