Prime
Budget for new fiscal year swells to Shs72 trillion
Members of Parliament during the plenary session chaired by the Speaker, Ms Anita Among, at Parliament on May 16, 2024. PHOTO/DAVID LUBOWA
What you need to know:
- If the budget is processed, it will represent a Shs19.394 trillion increase from the Shs52.736 trillion that was approved for FY 2023/24.
The government has made a Shs13.502 trillion upward revision to the budgets for the Financial Year (FY) 2024/2025.
A corrigenda and addendum to the budget has pushed the Shs58.3 trillion that was initially tabled in the House to Shs72.130 trillion.
The corrigenda and addendum to the budget were first tabled yesterday morning and later upheld in the report of the House Committee on Budget. The report was consequently tabled before a plenary sitting steered by Speaker Anita Among. By press time, the plenary sitting was still processing the Shs72.130 trillion budget.
If the budget is processed, it will represent a Shs19.394 trillion increase from the Shs52.736 trillion that was approved for FY 2023/24.
In his opening remarks on the said budget to Parliament, Mr Henry Musasizi, the junior Finance minister (General Duties) informed the House that the government will focus on sustaining peace and security, maintenance of roads, improving electricity transmission in the country and also boost Uganda’s tourism sector.
Additionally, efforts will be committed towards wealth creation by pumping funds into Parish Development Model (PDM) and Emyooga as a way of bolstering government efforts to tackle poverty in the coming Financial Year.
In the budget report tabled by the House Committee on Budget, the committee vice chairperson Mr Achia Remigio indicated that “the overall goal of the Budget Strategy for FY 2024 12025 is to accelerate economic growth to at least 7 percent, from a raw-materials-based to a manufacturing and knowledge-based economy; as well as improve the environment of doing business in Uganda and making it competitive.”
Mr Remigio also revealed that the budget report tabled last night shows that Shs592.08 billion will be used “to address flooding, traffic congestion, poor road infrastructure, un-signalised junctions, provision of street lighting and storm water drainage enhancements in Kampala and Shs12.77 billion for the development of Source of the Nile tourism—infrastructure that includes the construction of modern piers, docking places for boats, and other amenities.”
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Additionally, Shs11.29 billion has been earmarked for the Mt Rwenzori Tourism Infrastructure. This includes, Mr Remigio revealed, “improving the existing trails and establishing shorter ones, improving the existing bridges taking into consideration of the flush floods, providing more eco-friendly accommodation facilities, improving safety of tourists by establishing rest points along the trails, among others”.
Shs30.95 billion will be payment of emoluments of cultural leaders and Shs25 billion will cater for capitalisation of Vision Group.
In documents signed by Mr Musasizi, that were by press time being processed by the committee of the whole House, it is shown that the Shs13 trillion were okayed by the Cabinet.
“Following guidance from the President and Cabinet, and in line with Section 13 of the Public Finance Management Act 2015, adjustments have been made to the Budget for 2024/25. An addendum to the Budget as approved by the President and the Executive of Shs13.78 trillion, which increases the Budget to Shs72.12 trillion,” Minister Musasizi’s documents before Parliament read in part.
The adjustments by the Finance ministry show that extra funds will be channeled towards several items which, among others, include Shs34.10 billion for the Health ministry for the payment of allowances of medical interns, Shs119.70 billion for improvement of roads within Kampala and an additional Shs168.81 billion will be wired to Uganda Revenue Authority (URA) with Shs64.42 billion lined up to boost salary enhancement of staff and recruitment of new staff within the URA.
Elsewhere, Shs334.30 billion is prepared to cater for land acquisition for the Kibale Industrial Park. The same adjustments show that Shs117 billion will be used as payment to the Confederation of African Football (Caf) as initial deposit for Uganda to jointly host the Africa Cup of Nations (AFCON) slated for 2027. These funds will be wired through the National Council of Sports.
