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Who Won or Lost as Ugandan Parliament Passed Ugx52.7trn Budget

Ronald Mugabi | UNN Times ReporterbyRonald Mugabi | UNN Times Reporter
May 19, 2023
in Business, Editors Choice, News, Trending Stories, Uganda
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Who Won or Lost as Ugandan Parliament Passed Ugx52.7trn Budget

The trio of Minister Henry Musasizi (C), Ibrahim Ssemujju (L) and Patrick Isiagi (R) made enormous contributions as Parliament passed the 2023/24 budget on Thursday. (Photo/Courtesy)

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KAMPALA – Parliament of Uganda on May 18 passed the 2023/2024 National Budget after a lengthy sitting under guidance of Speaker Anita Among.

Whereas the Ugx52.7 trn appeared enormous on paper, Ugx21.4trn earmarked for statutory expenditure, covering items such as treasury operations totalling Ugx18.9trn, pensions and gratuity for retired civil servants amounting to Ugx856.2bn, among others.

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These funds are charged on the Consolidated Fund, and MPs have their hands tied by various laws, meaning they could not just allocate it except for those purposes already provided for under the law.

The Ministry of Defence and Veteran Affairs was given Ugx3.8trn, almost evenly distributed between recurrent and development expenditure.

Ugx2.4trn was set aside for the Uganda National Roads Authority, the bulk of which would be for the construction of roads.

State House got Ugx417.9bn, despite the Opposition’s vicious attempt to have it slashed down, with MP Ibrahim Ssemujju Nganda insisting that the allocations were vulgar and therefore unlawful.

Parliament, on the other hand, rejected a proposed provision for the Directorate of Ethics and Integrity in the Office of the President totalling to Ugx8.5bn for ‘curbing the vice of homosexuality and pornography among the youth.’ MPs, instead, took the funds to other votes.

MPs also plucked Ugx30bn from Uganda National Roads Authority – UNRA following the agency’s failure to rapidly absorb funds allocated towards the construction of the Hoima-Wanseko Road.

There was also over provision in the Treasury Operations vote on commitment fees totalling Ugx50bn, which MPs identified and reallocated to other votes.

A police project, which in fact had already closed, was proposed to have another Ugx53bn allocated to it, which MPs rejected.

The National Agricultural Advisory Services lost Ugx3bn it wanted for the purchase of milk coolers, which MPs said is duplication since there were other agencies already doing the same.

The defence ministry lost Ugx1bn it had wanted for the construction of the defence museum, due to government policy placing a freeze on multi-year projects.

Ministry of Finance, Planning and Economic Development wanted an increase of Ugx10bn to their workshops and seminars budget, which MPs rejected. Parliament also stopped a similar increment of Ugx10bn to the ministry’s travel inland vote.

The Uganda Warehouse Receipts Authority, an agency under Ministry of Trade, Industry and Cooperatives had a sought of Ugx2bn allocation rejected on grounds of non-absorption and spending monies without Parliament’s appropriation.

Kampala Capital City Authority scored highly after scooping Ugx66bn from the Uganda Road Fund to cater for the capital city’s dilapidated roads and drainage systems, which in the recent past attracted angry reactions from the public.

Ministry of Gender, Labour and Social Development had sought Ugx30bn to carry out ‘community mobilisation,’ but MPs did not buy into it. The funds were reallocated to other critical votes.

The Ministry of Water and Environment wanted an increase of Ugx2bn to finance the on-going Wetland Restoration Activities, which MPs maintained at the allocations passed last year.

Ministry of Tourism, Wildlife and Antiquities lost Ugx15.7bn it had sought to finance conservation efforts, but MPs rejected the idea – insisting the allocation was made because the ministry was not collecting any Non-Tax Revenue (NTR) during the COVID-19 pandemic, and that since tourism has resumed, it should be able to finance its activities to pre-pandemic levels.

The Directorate of Government Analytical Laboratory has been given Ugx8bn for the construction of the National DNA Data Bank.

Domestic spy agency, Internal Security Organisation – ISO got Ugx13bn more to support intelligence gathering, while the External Security Organisation – ESO was allocated Ugx5bn to fund its activities.

Ministry of Health was awarded an extra Ugx18.5trn for the rehabilitation and maintenance of health centre IIs and IIIs across the country.

The Opposition, on the other hand, lost all their proposals for alternative allocations, as Parliament approved the position of the Budget Committee as presented by its chairperson, Patrick Isiagi.

In a hard-hitting Minority Report, the dissenting MPs wanted Ugx43bn for ceremonies under the Office of the President reallocated to KCCA for road repairs and maintenance.

MP Ssemujju wanted Parliament to halt allocations to the Office of the Prime Minister until ‘President Museveni takes political action against officials’ implicated in the infamous iron sheets scandal.

Speaker Anita Among, however, guided that the funds were not person to holder, and that the allocations go to the office.

Shadow finance minister, Muhammad Muwanga Kivumbi faulted the finance ministry for failing to itemize and provide for activities under Statutory Expenditure, a move he claimed was intended to be used as a window of fraud.

Muwanga Kivumbi accused government of vouching for an overly ambitious Ugx52.7trn budget, which he said was unachievable, but was only intended to be used as a ruse to raise the three per cent free hand the Public Finance Management Act allows government to allocate during implementation without prior approval by Parliament.

The budget that takes effect on July 1, 2023, is scheduled to be read by the finance minister on June 15, 2023, breaking down the approved budget into quarterly spending limits for Ministries, Departments and Agencies.

Tags: National Budget for the financial year 2023/2024parliamentUganda
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