Why Ugandans should worry about 2017/18 Budget

Figures, data and statistics that have bored some MPs for most part of the closing Financial Year nears end with the scheduled passing of the Appropriation Bill 2017, on Tuesday next week.
The Budget Committee, which was deserted by most members, save for a handful of common faces, are putting ink on paper to prepare the final appropriations, providing financial means to execute the work of government.
Now pose for a mixed bag of shock and hope; as has been sufficiently reported, the Budget will after all majorly fund recurrent expenditure.

Shs17.4 trillion will cater for recurrent expenditure while Shs11.5 trillion will service development expenditure, a chunk of which will be for infrastructure under Uganda National Roads Authority.
In his response to government’s Budget Framework Paper, Shadow Finance minister Anthony Akol (FDC, Kilak North) attributed the decline in economic growth to “prioritisation and bulk financing of support sectors other than productive sectors, which has constrained Uganda’s import substitution potential and positioned her as a transit country due to reduced cost of importation”.
With growing unemployment and youth destitution, MPs should worry themselves about the expenditure driven Budget against development.

Development Budget
Most of the development Budget is to finance road construction and a multitude of infrastructural projects like the Standard Gauge Railway, which may not readily translate into jobs for the street dwelling, jobless youth.
Relatedly, the growing debt crisis continues to stare the country in the face, a concern that bothered the Budget Committee at its very last meeting.
“In my view, it is already unsustainable because we cannot completely finance our own Budget, the cumulative debt is suffocating this country,” lamented Mr Amos Lugoloobi (NRM, Ntenjeru North), the committee chairperson.

Presenting the Finance Committee’s report, chairperson Henry Ariganyira (NRM, Rubanda East), told MPs that the much dreaded domestic borrowing will increase, despite a previous indication in the Budget Framework Paper that it was to decline going forward.
“Our priorities are increasing and we continue to make allocations, so as long as we appropriate, there will be domestic borrowing,” he told the legislators.
He was responding to Nakasongola Woman MP Margaret Komuhangi, who made a terse proposal to have Finance ministry officials sanctioned over the rising national debt.

She was reminded, however, that it was a collective guilt, shared by Parliament and leaders across board, whose signatures seal borrowing deals with international financial institutions.
Mr Akol noted the rise in domestic borrowing, and suggested that in the next Financial Year, it will offer a great impediment to economic growth.
“Although it is indicated that to rebound the economy in FY 2017-2018, government was to scale down borrowing but to the contrary is projected to increase by 45 percent from the current Shs5.3 trillion to Shs7.7 trillion,” read the alternative Budget Framework Paper.

This, certainly, will have an impact on delivery of government promises made to citizens during the 2016 elections.
Against the many political promises made during the campaigns, the report card returns with a not-so-good performance; many promises and priorities go unfunded.
Take the one school per sub-county promise for example; in the 2017-2018 ministry of Education budget, only 12 schools will be constructed at a budget of Shs18 billion.
Education Committee chairperson Connie Nakayenze made the confession, just days away from MPs sealing the process.
At that pace, it is already clear that the numerous, sub-counties in Uganda are unlikely to get the secondary schools at the end of this term.

Now that the Budget is almost out of the way, legislators must wake up to the fact that business cannot be usual if any realisation of economic growth that translates into more employment opportunities and increase cash-flow in the economy is to be had.
In his inaugural address to Parliament following his re-election as Deputy Speaker, Mr Jacob Oulanyah quoted a one Prof Dicey, telling MPs that: “Parliament has the power to do all things under the sun, except turning a man into a woman, but that has been made possible through modern surgery.”
The timing could not be more perfect to now prove to Ugandans that indeed the people’s representatives can do everything possible to salvage the economy and ease the joblessness, impatience and anxiety.

No tax exemptions
The much controversial tax exemptions have been blocked by Parliament’s Finance Committee, which rejected the proposed Shs23 billion to pay taxes to selected investors.
Mr Ariganyira told the Budget Committee that their reason for rejecting the payment was because “no clear criteria and no legal advice by Attorney General and memorandum of understanding with beneficiaries.”
Mr Lugoloobi told Sunday Monitor that the proposed payments “don’t pass the test,” and will not be supported by the Committee.
“These ones (exemptions) where the ministry of Finance just writes to Uganda Revenue Authority; they did not go through right procedures of competitive considerations,” he said.
It is about time the struggling, genuine local investors earn the consideration of their Parliament, and a competitive process be put in place to allow all an opportunity to benefit from these exemptions.
As the 2017-2018 Budget comes into place, Ugandans deserve and expect more from the people’s representatives.

On borrowing
Presenting the Finance Committee’s report, chairperson Henry Ariganyira (NRM, Rubanda East), told MPs that the much dreaded domestic borrowing will increase, despite a previous indication in the Budget Framework Paper that it was to decline going forward.
“Our priorities are increasing and we continue to make allocations, so as long as we appropriate, there will be domestic borrowing,” he told the legislators.
He was responding to Nakasongola Woman MP Margaret Komuhangi, who made a terse proposal to have Finance ministry officials sanctioned over the rising national debt.

The budget
With growing unemployment and youth destitution, MPs should worry themselves about the expenditure driven Budget against development.
Most of the development Budget is to finance road construction and a multitude of infrastructural projects like the Standard Gauge Railway, which may not readily translate into jobs for the street dwelling, jobless youth.