Is the Budget aligned to our National Development Plan?

The national Budget for the Financial Year 2020/2021 is the first in the third phase of the National Development Plan (NDP) III which runs until 2025. The Budget was approved amid cries by civil society that it does not represent the current coronavirus situation.

There are priorities that have to fit in NDPIII if Uganda is to achieve an industrialised economy as envisage by 2025.

Mr Julius Mukunda, an economic expert, says the budget presented to the country did not much NDPIII priorities but was quick to add that both documents did not factor in the coronavirus disruptions.

“Now that we are going to review the Budget to fit into Covid-19 effects, it definitely means the budget and the planning will be apart. Last year’s Budget was compliant by only 54 per cent. It was unsatisfactory. At this time, I do not think the national Budget is compliant with NDPIII,” Mr Mukunda said on Friday.

NDPIII aims to “Increase average household incomes and improve the quality of life of Ugandans” under the theme “Sustainable Industrialisation for inclusive growth, employment and sustainable wealth creation.” The plan hopes to aid Uganda’s path to industrialisation in the next thirty years.

According to NDPIII strategy, Uganda is to maximise on industrialisation such that more Ugandans are employed in different sectors.

However, in the Shs45 trillion 2020/2021 Budget, priority was given to Works and Transport, Security, Education and Health, among others. Agriculture, which employs more than 72 per cent of the youth, has a Budget of Shs1.3 trillion. Tourism which is among the most hit sectors by Covid-19 was allocated only Shs193.6 b.

Mr Everest Kayondo, the chairperson of the Association of Uganda Tour Operators (AUTO), expressed displeasure on allocations to Tourism. “We were shocked that despite the high foreign revenue tourism fetches, we got this little,” Mr Kayondo said.

The budgetary allocations placed said priorities at the bottom with Agriculture sector getting 2.91 per cent, Tourism with 0.44 per cent while Energy and Mineral development which superintends over oil and gas is placed among the 10 in the Budget with 5.72 per cent.

While unveiling the Budget, Mr Matia Kasaija, the Finace minister, revealed: “The Agriculture sector plays a central role in Uganda’s economy. It accounts for 45 per cent of exports and employs 64 per cent of Ugandans and 72 per cent of all youths, thus its importance to influencing household incomes.”

But NDPIII maintains that for successful implementation of its programmes, key development strategies such as; agro-industrialisation, fast-track oil, gas and mineral-based industrialisation, import replacement/promotion of local manufacturing, export promotion, harness the tourism potential, and provide a suitable fiscal, monetary and regulatory environment for the private sector to invest must be at the fore front.

PROJECTION
Mr Kasaija cast the outlined priorities of the Third National Development Plan (NDPIII) FY2020/2021 to FY 2024/2025 at far bottom yet the plan is meant to guide the allocations.

Whereas the minister’s speech was geared towards recapitalising the economy due to coronavirus disruptions, there are concerns that the Budget is not in tandem with the country’s capacity to quickly rise during the current economic difficulties.

NDPIII, which speaks to the aspirations of Uganda Vision 2040, on the other hand does not have provisions for adjustment for now. It is premised on the progress made, challenges encountered and lessons learnt from previous planning and implementation experiences of the first National Development Plan NDPI and second NDPII.

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