How next year's Shs41t Budget will be shared

Wednesday April 14 2021
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National Budget. Finance Minister Matia Kasaija at the June 2017/2018 Budget reading in Kampala. PHOTO/ALEX ESAGALA

By Damali Mukhaye

BY DAMALI MUKHAYE
Finance minister Matia Kasaija yesterday tabled in Parliament details of the Shs41.2 trillion budget for the 2021/2022 Financial Year.
According to the sector allocations, Governance and Security will take Shs7.7 trillion followed by Human Capital Development with 6.8 trillion and Integrated Transport Infrastructure and Services in third position with Shs3.9 trillion.  Others are Agro-industrialisation (1.4 trillion), Regional Development (Shs1.2 trillion) and Development Plan Implementation with Shs1 trillion. 
Mr Kasaija explained that Governance and Security took a lion’s share because maintenance of security, peace and good governance is critical for supporting socio-economic progress of a country chasing the middle-income dream.
 “This [allocation] will focus on interventions aimed at modernisation of the security infrastructure, improving welfare of security personnel, enforcing law and order, compensation of war affected persons and the overall improvement in efficiency of government,” Mr Kasaija said.
Mr Kasaija told the Budget Committee that since Parliament on January 29 approved the National Budget Framework Paper for the Financial Year 2021/2022, the allocation of Shs41.2 trillion has been formulated based on the approved framework, National Development Plan III and National Resistance Movement (NRM) manifesto.
In the proposed budget, the government has prioritised five broad areas of good governance and security, private enterprises, promoting inclusiveness and sustainable growth, accelerating the pace of industrialisation, research and innovation and human capital development.
Explaining the clustered sectors, Mr Kasaija revealed that the ministry is implementing the programme approach as opposed to sectoral approach. 
“In order to ensure that the budget is aligned to the NDPlll, we have commenced on restructuring the budget from a sectoral approach to a programme approach. This will enable proper implementation of the NDP, better budgeting, monitoring and evaluation,” Mr Kasaija said.
There were attempts to cluster Judiciary and Legislature under Governance and Security but the two sectors protested and the minister dropped the idea. The Finance ministry  is working with NPA to realign the programmes. 
The budget reforms seek to increase harmonisation, reduce duplication, redundancy and wastage, to enhance synergies and increase implementation of budget with results, among others.

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Background
In the 2020/2021 Financial Year, the government made a budget of up to Shs45.5 trillion indicating a rise of about 12.3 per cent compared to the previous year.

Others 

Regional Development- 1.2t
Development Plan Implementation- 1t 
Climate Change, Natural Resource and Environment &Water- 461.6b
Public Sector Transformation- 324.8b
Innovation, Technology Development and Transfer- 271.4b 
Appropriation in Aid/Local Revenue- 8.5t
Interest and Amortization- 6.7b
Domestic Arrears- 400b
Appropriation in Aid/Local Revenue- 215b 

editorial@ug.nationmedia.com 

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