Works, security take lion’s share of Budget

Budget matters. Finance minister Matia Kasaija at the 2018/2019 Budget reading last year. Parliament yesterday received Budget estimates for the next financial year, amounting to Shs40.5 trillion. FILE PHOTO

What you need to know:

  • The fiscal outlook, the lawmaker’s state in the report, could be undermined by revenue shortfalls and higher spending in the run-up to 2021 General Election.

Kampala. Parliament yesterday received Budget estimates for the Financial Year 2019/2020, amounting to Shs40.5 trillion.
In terms of sectoral allocation, Works and Transport is projected to get 16.2 per cent of the budget with the largest share of Shs6.4 trillion, followed by Security at 9.1 per cent (Shs3.61 trillion) of the total sectoral allocations.
The Ministry of Education has been earmarked to take Shs3.28 trillion, while Energy and Mineral Development is set to get Shs2.95 trillion. The Ministry of Health will get Shs2.5 trillion and Agriculture taking one trillion shillings.

MPs underscored an increment in the agricultural sector budget from Shs892.9b in 2018/19 to Shs1.4 trillion in 2019/20 Financial Year.
The least financed sector in the budget is ICT and National Guidance Sector, which was accorded 0.3 per cent (Shs123.3 billion) in the National Budget.
The total proposed annual budget for 2019/20 stands at Shs40.48 trillion of which Shs27.27 trillion (69 per cent) is to be allocated by Parliament and Shs12.8 trillion is for statutory expenditure charged directly on the Consolidated Fund.

The committee also noted in its report that the cost of doing business is still high, partly because of relatively high power tariffs, tax rates, costs of borrowing, and limited access to long-term financing.
The report was presented after a long wait, with Parliament accusing the Ministry of Finance of frustrating the appropriation process.
Figures contained in this budget outlook are subject to changes because Parliament, through its duty on appropriation, is mandated to make alterations before the Budget is finally passed.
In the minority report presented by Butambala County MP Mohammad Muwanga Kivumbi (DP), the MPs highlighted fears over the ever-increasing national debt.

“It should be noted with concern that projected debt expenditures in 2019/20 are almost equal to tax revenue (URA Tax Collections) of Shs20.59 trillion,” the minority report reads in part.
The committee noted that Uganda’s economy is expected to post a GDP growth of 6.3 per cent in the next financial year from the earlier projection of 6.0 per cent.
The main drivers of faster growth in the medium-term include accelerated growth in trade, manufacturing, private construction, public sector investments in infrastructure, agriculture and tourism.
“The committee notes that, the economic outlook seems favourable. However, it is important to note some potential risks to this favourable economic outlook,” reads the committee report.

The MPs warned that further delays in the start of oil production, security concerns and political tensions could dampen the confidence.
The fiscal outlook, the lawmaker’s state in the report, could be undermined by revenue shortfalls and higher spending in the run-up to 2021 General Election.
Parliament is expected to resume today at 9am, amid concerns that government rejected its earlier promise of salary enhancement for workers.