Providing the Assembly with details, the minister explained that the Integrated Financial Management Information System (IFMIS) currently accounts for revenues for MDAs financed through the central budget. However, he noted that not all sectors generating self-raised revenues are captured within the system, and some of these revenues are not appropriated through the national budget.
Despite this limitation, the Finance Ministry has taken steps to strengthen reporting. The minister informed the Assembly that a circular has recently been issued to all sectors and entities that generate their own revenues, directing them to submit monthly revenue data to the ministry.
During supplementary questions, Hon. Mbowe asked how the ministry is monitoring these revenues to ensure they form part of total government revenue and strengthen revenue assurance.
In response, the minister said oversight mechanisms are being enhanced, especially for entities that receive government subventions while also generating their own income. Under the reform measures, such entities will now be required to submit quarterly revenue reports to the Ministry of Finance.
He further explained that government subventions to these agencies will take into account the revenues they generate themselves, meaning the support provided by government will reflect only the net amount required.
The minister also revealed that the Revenue Directorate is actively engaging MDAs with revenue-generating mandates to ensure they report their collections promptly.
As part of broader reforms, the ministry is reorganising its Budget Directorate to create a dedicated section responsible for monitoring non-tax revenues from MDAs. According to the minister, this team will track agencies’ revenue targets and follow up on their reporting.
Responding to further concerns about balances held by some agencies at the end of the year, the minister clarified that MDAs connected to IFMIS have their balances channelled into the Consolidated Revenue Fund during year-end closing. Autonomous agencies outside the system, he said, are allowed to carry forward their balances but must seek approval from the ministry before spending them.
He added that expanding the rollout of IFMIS across government institutions remains central to the ongoing reforms, noting that the Accountant General is working on a plan to bring on board agencies that are not yet connected to the system.