Prime
Govt tables Shs43 trillion budget
Junior Finance Minister (General Duties) Henry Musasizi addresses Parliament yesterday. Photo/ David Lubowa
What you need to know:
- The budget has reduced from Shs44.7 trillion in the current financial year to Shs43 trillion in the coming one.
The government yesterday tabled the draft budget estimates for the Financial Year 2022/2023, cutting projected expenditure by Shs1.5 trillion.
The budget has reduced from Shs44.7 trillion in the current financial year to Shs43 trillion in the coming one.
Junior Finance Minister (General Duties) Henry Musasizi yesterday tabled the 2022/2023 National Budget Framework Paper in Parliament, and revealed that the resource envelope is expected to reduce.
“Our resource envelop next year is going to be about Shs43 trillion,” he said, adding: “It is a decline because some of the projects have expired and some of the donor support has gone down.”
The Budget Framework Paper (BFP) is the overall strategy document for the budget, and provides the link between the government’s policies and the annual budget.
It outlines revenue projections; the overall resource envelope for the medium-term, priority interventions and proposed sectoral expenditure plans.
Mr Musaasizi was, however, optimistic that government will be able to raise more funds to finance a part of the budget.
“The good news is on the revenue side, we are seeing a rise. We project to collect more tax revenue than we are collecting this year and that is a positive because we are moving towards narrowing the fiscal deficit,” the minister said.
According to the BFP, which was approved by Cabinet on Monday, the next budget will be centred around how government can improve wealth among the people.
In the draft budget, the government has purposely allocated funds under Parish Model, Emyooga, Women Fund, Youth Livelihood Projects, Operation Wealth Creation and other wealth creation ventures under Ministry of Agriculture.
“We are looking at the Shs100 million for all the parishes in the country. We are looking at money for manufacturing and small scale agro processing …we want to ensure that we bring the 39 percent who are still in subsistence into the money economy. The provisions we have put are going to respond to some of these challenges,” Mr Musasizi said.
The Public Finance and Management Act (PFMA) (as amended) mandates the Finance minister to table the Budget Framework Paper by December 31.
Speaker of Parliament Jacob Oulanyah yesterday sent the paper to sessional committees for scrutiny before it is forwarded to the Budget Committee for further scrutiny.
The Leader of Opposition, Mr Mathias Mpuuga Nsamba, however, questioned the laying of the BFP without the Charter of Fiscal Responsibility as it is provided for under the PFMA. The charter among others ensures that government maintains a sustainable public debt level.
Speaker Oulanyah, however, ruled that the charter would be handled after the budget is debated.
Mr Musasizi informed the House that the charter was presented to Parliament, and would be debated when lawmakers return from Christmas break.
