The 11th Parliament approved a UGX 52.7 trillion budget yesterday, May 18, 2023. The budget aims to fully monetize Uganda’s economy, mostly through commercialization of agriculture and other technologies.
In the upcoming fiscal year, the government continues to be optimistic that the economy would expand at a 6% annual rate. Among other things, it is anticipated that oil and gas production will increase, PDM will be implemented, and inflation will decline.
On paper, Shs52.7 trillion seems like a lot of money, but of that, Shs21.4 trillion is designated for statutory expenditure, which includes, among other things, treasury operations worth Shs18.9 trillion and pensions and gratuities for retired civil servants at Shs856.2 billion.
The legislature passed a budget that could only be used for expenditures that were allowed by law.
The budget’s highlights include:
Shs3.8 trillion has been allocated to the Ministry of Defence and Veteran Affairs, with about equal amounts going toward development and recurring expenses. Due to a government policy that placed multi-year projects on hold, the military ministry was unable to spend the Shs1 billion it had planned to on the construction of the defense museum.
Shs417.9 billion is given to the state House. Despite the vocal opposition, led by the Kira Municipality and FDC MP Ibrahim Ssemujju Nganda, who claims the allocations are unlawful.
A total of Shs2.4 trillion has been allocated to the Uganda National Roads Authority (UNRA), the majority of which will go toward building new roads. Additionally, MPs withdrew Sh30 billion from UNRA after the organization failed to promptly use funds allotted for the construction of the Hoima-Wanseko Road.
The Kampala Capital City Authority (KCCA) has been given Shs66 billion by the Uganda Road Fund to repair the capital city’s crumbling roads and drainage systems, which have recently enraged the public.
An additional Shs18.5 billion has been given to the Ministry of Health for the repair and maintenance of the nation’s health centers II and III.
Some budget requests were rejected because of duplicates and a lack of sufficient accountability, and others that were authorized in the previous years were done so due to COVID-19 effects but denied this time around by the MPs.
The final budget breakdowns will be handled by the minister of finance on June 15, 2023, during the final reading of the actual budget.
