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CSOs call for prioritisation of key sectors during budgeting process
Mr David Walakira the executive director of the Centre for Budget and Tax Policy and Ms Sophie Nampewo, the Manager of Governance and Accountability at Oxfam in Uganda address journalists on Wednesday. Photo | Busein Samilu
What you need to know:
- Government has planned to spend Shs53.3tn in the next financial year, up from Ss52.7tn in the current financial year.
A section of Civil Society Organisations (CSOs) has called upon the government to make proper appropriations to areas like poverty eradication, climate change, business enhancement, and agriculture among others, that directly have an impact on people’s lives during the ongoing budgeting process.
The CSOs say the government should be deliberate while making allocations if indeed they mean to target developing Ugandans as they claim in their statements.
Mr David Walakira, the executive director of the Centre for Budget and Tax Policy (CBTP) told reporters at the CBTP offices in Kampala on Wednesday, April 3 that they have observed that some of the nice statements in the FY2024/2025 National Budget Framework Paper (NBFP) are not substantiated with requisite allocations.
“The overall goal of the Budget Strategy for FY2024/2025 is to accelerate economic growth to at least 7 per cent, from a raw-materials-based to a manufacturing and knowledge-based economy. We note that the budget for manufacturing has barely changed between FY 2023/24 and FY 2024/25 at Shs105bn,” he said.
Key programs including; mineral development; community mobilisation and mindset change; sustainable urban development, and housing have not been given enough funds yet they are critical in fighting poverty and inequality among Ugandans. These programs have been allocated Shs31.55bn Shs40.92bn and Shs40.21bn respectively.
“We have observed some items that continue to exist in the budget, yet they are often conduits for misuse such items are; donations which have been given Shs162b, special meals and drinks Shs296.4bm, medical expenses Shs142.3b, among others,” he said.
Government has planned to spend Shs53.3tn in the next financial year, up from Ss52.7tn in the current financial year.
Three programs including; Human Capital Development (HCD), governance and security and transport and integrated infrastructure services have continued to lead in allocation like last year according to the NBFP.
HCD for example has been given Shs9.61tn up from the current Shs9.58tn an increment attributed, partly to an increase in the local government's wage and non-wage allocations.
This, Ms Sophie Nampewo, the Manager of Governance and Accountability at Oxfam in Uganda said is also in line with the budget priority on investing in the people of Uganda as stated in the Budget Framework Paper FY2024/25.
“Up to 21 per cent of the HCD budget shall be sourced externally in FY 2024/25 in comparison to 25 per cent in FY 2023/24. This funding situation continues to risk the realisation of the programs goals in education, health and community-based services, even as the country still grapples with legal battles on the just recently passed Anti Homosexuality Act 2023,” she said.
Governance and Security is in second with Shs7.44tn, allocated in FY2024/25 and in comparison to FY 2023/24, their allocation was reduced by Shs228bn on account of a reduction in the external funding
Integrated transport and infrastructure services, which are in the third position, have been allocated Shs6.15t compared to Shs4.49tn which was allocated in FY 2023/24.
“The distribution of the budget between the central government and Local Government is still unbalanced because Shs30.1t, about 70 per cent is allocated to the central government while about 30 per cent (Shs5.535 trillion) has been allocated to the local government. Whereas the budget allocation for the central government increased by Shs1.5 trillion (excluding interest payments), the LG budget increased by about Shs403bn between FY2023/24 and FY2024/25. We are yet to take longer strides on the journey towards fiscal decentralisation,” she added.
