Govt proposes budget cuts to revive economy

Key ministries, departments and government agencies (MDAs) will have to find alternative ways to finance their planned activities in the next financial year after Cabinet approved deep cuts in the 2023/2024 budgets despite a slight increase in budget size.

The trickledown effect of the cuts will exacerbate the cost of living squeeze that ordinary citizens in the country are grappling with.

Ms Ketty Lamaro, the Education and Sports ministry permanent secretary, for instance recently revealed that the allocation for Human Capital Development is set to reduce by Shs83.94 billion from the current allocation of Shs9.098 trillion (FY2022/2023) to Shs9.005 trillion.

Ms Lamaro added that the budgetary reduction will force the ministry to prioritise aligned programme implementation action plan result areas such as education, sports and skilling programme, health sub-sector programme, gender labour and the social development sub-programme.   

Tourism ministry

It’s not only the Education ministry that has to contend with budget cuts. Mr Tom Butime, the Tourism minister, recently revealed that the proposed Shs89.293 billion is way below the FY2022/2023 approved budget of Shs194.677 billion.

Mr Butime explained that the deficit will adversely affect the implementation of the various programmes and attainment of National Development Plan Three (NDP III) target as well as recovery efforts of the Tourism Development Plan.

It is very critical that the programme is availed with additional Shs211.307 billion to enable it implement the key interventions enumerated in the Budget Strategy for the FY2023/2024 and NDP III.

“There is a need for special dedicated focus for the national budget towards the realisation of the accelerated development of tourism,” Mr Butime wrote in the Budget Framework Paper 2023/2024, adding, “Scaling up the funding will increase the velocity of the return on investment, not only in tourism development but for all sectors of the economy. Tourism will generate funds for other priorities.” 

Works ministry

The Finance ministry has proposed a budget allocation of Shs4.656 trillion for the Works and Transport ministry to cater for Integrated Transport Infrastructure and services.

Mr Bageya Waiswa, the Works and Transport ministry permanent secretary, said the programme will focus on delivering critical infrastructures and services necessary to realise the goal of NDP III during FY 2023/2024.

“The programme will aim at consolidating and increasing the stock and quality of productive infrastructure through reducing the average travel time, reducing freight transportation costs; increasing the stock of transport infrastructure, increasing average infrastructure lifespan and reducing fatality and casualties from road accidents,” he said.

The programme budget for the Lands ministry has been proposed to be allocated Shs104.924 billion, with wage constituting Shs4.599 billion and non-wage constituting Shs18.800 billion, the government Development Fund Shs5.60 billion and the donor funding Shs75.925 billion.

Writing in her section forward of the Budget Framework Paper, Ms Judith Nabakooba, the Lands minister, said: “It should be noted that the proposal of Shs104.924 billion is far below the FY2023/2024 prioritised NDP III Programme Budget of Shs522.17 billion and original programme budget of Shs840 billion.” 

Water ministry

The Water and Environment ministry has meantime seen its budget reduced by Shs87.78 billion in the proposed budget for FY2023/2024. Its budget for the current FY2022/2023 was Shs635.142 billion.

The ministry’s permanent secretary, Mr Alfred Okot Okidi, said the plans for the programme that were drawn up within the Medium Term Expenditure Framework (MTEF) are linked to the NDP III targets. They underscore the fact that the annual financial projections for the programme have been adjusted to match the funds available for each in the MTEF.

“The votes mapped under Natural Resources, Environment, Climate Change, Land and Water Management Programmes have a total approved budget of Shs547.362 billion of which Shs42.66 billion is wage, Shs79.650 billion is non-wage recurrent while Shs146.4 billion is domestic development and Shs278.646 is external financing,” Mr Okidi wrote.   

The proposed budget for the Ministry of Energy and Mineral Development has been reduced by Shs354.186 billion. In the FY2022/2023 it was Shs1.577 trillion but for FY2023/2024 has been proposed Shs1.2 trillion.

Energy ministry

Elsewhere, Ms Irene Bateebe, the Energy ministry permanent secretary, wrote in her section that the Sustainable Energy Development Programme is among the programmes that have been earmarked for implementation of NDP III.

“The Goal of the Sustainable Development Programme is to meet the energy needs of the country by providing adequate, affordable, clean and reliable energy for sustainable socio-economic growth development and it contributes to the NDP III objectives of consolidating and increasing the stock and quality of productive infrastructures,” she wrote, adding, “The specific objectives of the programme are: increase and utilisation of electricity, increase generation capacity of electricity, increase use of adoption and use of clean energy, and promote utilisation of energy efficient practice and technologies.”   

Other entities

The proposed State House budget for FY 2023/2024 is down to Shs177.568 billion from the current FY 2022/2023, which is Shs274.420 billion.  

The Public Service ministry’s budget has been reduced to Shs208.167 billion in FY2023/2024 compared to Shs222.692 billion in FY2022/2023.

Writing in the forward, Ms Catherine Bitarakwate Musingwiire, the permanent secretary of the Public Service ministry, revealed: “Inadequate budget for implementation of Rationalisation of Agencies and Public Expenditure (RAPEX) reforms Shs4.61 billion, wage deficit for UBC Shs6.5 billion is in wage for the Uganda Broadcasting services subvention under Ministry of ICT and National Guidance among other constraints.”

The Ministry of Gender, Labour and Social Development’s proposed budget for FY2023/2024 is Shs21.999 billion down from Shs74.984 billion in the current FY2022/2023.

The Ministry of Gender Labour and Social Development is leading the implementation of the Community Mobilisation and Mindset Change Programme (CMMCP) adopted by the government in line with NDP III. 

The permanent secretary in the Ministry of Gender, Labour and Social Development, Mr Aggrey David Kibenge, wrote: “It should be noted that much as the programme is expected to deliver the key outputs during the NDP Three, a sharp budget cut in which the budget for the programme reduced from Shs75 billion to Shs22 billion in the next FY2023/2024 is likely to negatively reverse the efforts of already put in place in a bid to attain the core objective of the programme.”   

Governance and Security is seeing its budget being cut down to Shs6.727 trillion in FY2023/2024 down from Shs7.167 trillion in FY2022/2023.

“In the same vain, I appeal to the honourable members of 11th Parliament to support and approve the proposed budget of Shs6.795 trillion to enable the programme execute its mandate during the FY2023/2024,” the secretary office of the President, Haji Yunnus Kakande, wrote. 

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