TERMS OF REFERENCE

Assessing Government Compliance with the Charter of Fiscal Responsibility Under the Public Finance Management Act 2015 (as amended) FY 2021/22 to FY 2025/26

1.0 Introduction

Government of Uganda has since the early 2000s initiated various macro-economic reforms to enhance the efficiency and effectiveness of public sector finance management. To date Uganda has the Public Finance Management (PFM) Act, 2015 and its attendant Regulations which were gazetted in 2016.

Public Finance Management (PFM) Act, 2015
The PFM Act 2015 (as amended) addresses key gaps identified in PFM legislation that led to the repealing of the Public Finance and Accountability Act, 2003 in 2015. Specifically, this law is aimed at harmonization of legislation on PFM, restoration of credibility, predictability and transparency of the budget, strengthening accountability and Parliamentary oversight, timely approval of the National Budget and its Alignment to the National Development Plans (NDPs), operationalizing the Contingencies Fund as per Article 157 of the Constitution, provide linkage between budget preparation, execution and oversight; regulation for integration of Petroleum Revenues into the National Budget and appropriation of all Government revenues and expenditures. The fiscal commitments implied through this act are further explicit in the Charter of Fiscal Responsibility (CFR).

About the Charter of Fiscal Responsibility (CFR).
The charter of fiscal responsibility is a document that sets out Government’s 5 year commitment to managing fiscal policy in accordance with clear and measurable objectives that are consistent with fiscal principles like sufficient revenue mobilization, prudent debt management, sustainable fiscal balance in the medium term, prudent petroleum revenue management, comprehensive fiscal risk management, consistent alignment of the medium term expenditure framework with the national development plan, then efficiency, effectiveness and value for money in expenditure.
In section 4(3) of the PFM Act the Minister of Finance, Planning and Economic Development is required to prepare a Charter for Fiscal Responsibility in which he/she shall set measurable fiscal objectives based on the fiscal principles. Relatedly Section 5 of the PFM Act gives guidelines on how and when to prepare the Charter, whose responsibility it is and what the contents should be. The Minister is required to submit the Charter to Parliament, not later than three months after the first sitting of Parliament after a general election, for approval and subsequent publication not later than one month after approval by Parliament or such a time as may be determined by Parliament. In Section 6 of the PFM Act Cabinet is required to adhere to the Charter while making decisions with implications on public finances.
The current charter is drawn up to cover the period between FY 2021/22 to FY 2025/26 and it is the second edition since the enactment of the act. The purpose of the Charter was to provide the Government’s fiscal policy objectives in the next five years that would ensure sustainable delivery of the country’s goal of socioeconomic transformation resulting in increased household incomes and improved quality of life of Ugandans.

Why Examine the Fiscal Commitments of FY 2021/22 to FY 2025/26 CFR?
According to the current CFR the aim is to support the socioeconomic transformation agenda while ensuring macroeconomic stability and fiscal sustainability during the period FY2021/22 – FY2025/26. As it comes to an end, the government is required to put forward measurable fiscal objectives covering the next five-year period through the third CFR. The attainment of these fiscal objectives constitutes the fiscal contract between the general population and the ruling government. In order to inform the next CFR formulation, CSBAG in collaboration with the parliamentary budget office (PBO) have planned to assess how the current objectives covering the period of FY2021/22 – FY2025/26 have been attained.
Through this assessment, CSBAG and the PBO are seeking to examine fiscal sustainability over the last five years through quantification of achievement of fiscal targets outlined in the CFR by the government, benchmark with regional commitments and formulate recommendations that will form a basis for the next CFR. CSBAG and PBO are therefore seeking consultancy services to undertake an assessment on Government Compliance with the second Charter of Fiscal Responsibility Under the Public Finance Management Act 2015 (as amended) between FY 2021/22 to FY 2025/26.

Objectives of the Study

1. To measure the level of compliance with fiscal targets outlined in the CFR over the 5-year period.
2. To evaluate the quality and timeliness of reporting on CFR fiscal targets over the 5-year period.
3. To Benchmark Uganda’s fiscal targets under the CFR with those of its peers in the region.
4. To formulate evidence-based recommendations that will inform the formulation of the next CFR.

Expected Outputs and Deliverables:

1. An inception report from the consultant on the scope of work and duration of the research study.
2. A draft study report on the compliance of the GoU to the provisions of the Charter of Fiscal Responsibility Under the Public Finance Management Act 2015 (as amended) between FY 2021/22 to FY 2025/26.
3. A final report on the compliance of the GoU to the provisions of the Charter of Fiscal Responsibility Under the Public Finance Management Act 2015 (as amended) between FY 2021/22 to FY 2025/26.

Time Frame for the deliverables

A draft report is expected within 30 working days of signing the agreement. This is premised on the fact that the stakeholders will be readily available for consultation on the set dates.

Expected Competencies/expertise

A draft report is expected within 30 working days of signing the agreement. This is premised on the fact that the stakeholders will be readily available for consultation on the set dates.

1. Excellent knowledge of PFM practices and principles in Uganda.
2. Demonstrable experience in handling assignments of a similar nature.
3. A master’s degree in economics or related field will be an added advantage.

Technical and Final Reporting Requirements

The Consultant will report directly to the CSBAG Executive Director. CSBAG together with PBO will provide relevant background documents necessary for the assignment including Ministry of Finance budget documents, Office of the Auditor General’s Report, among others. It will also be responsible for the coordination of meetings and other activities under the Consultancy

Submission of proposals for the tasks

CSBAG and PBO is inviting Proposals for implementation of all deliverables as specified in this Terms of Reference. Interested consultants/firms are requested to submit Technical and financial proposals:

1. Only financial proposals quoted in UGX shall be accepted and reviewed
2. The technical proposal and financial proposal. It should contain:
   • Description of the understanding of the tasks, including comments on the ToR;
   • A succinct but short description of the methodology to be followed, to achieve the desired objectives.
   • Work plan and Time scheduling of information gathering and other activities; and
   • CVs of the consultants/firms, some samples of similar work are encouraged
   • (links or soft copies)

Application Process.

Interested candidates should submit their application letter, updated CVs, technical and financial proposals and references for similar work conducted previously to the email: procurement@csbag.org, addressed to P. O. Box 660, Ntinda Kampala, Uganda, Plot 11 Vubya Close Ntinda-stretcher Road, by 5:00pm 08th August 2025.