Budget revised to Shs44 trillion

According to the revised Budget allocation, human capital development now takes the lion’s share with Shs7.7 trillion followed by governance and security with Shs6.9 trillion.

Governance and security had the lion’s share in the initial Budget but it has been slashed by Shs750b.

Integrated transport infrastructure and services comes in third position with Shs5 trillion, up from Shs3.9 trillion.

Others include agro-industrialisation (Shs1.6 trillion), regional development (Shs1.2 trillion), sustainable energy development (Shs1.1 trillion) and development plan implementation (Shs1 trillion).

The acting director for Budget at the ministry of Finance, Mr Kenneth Mugambe, said government had not included Shs500b for Covid-19 vaccine in the initial Budget. 

“The money for Covid-19 had not been factored in the previous Budget. By the time we tabled the first Budget on April 1, the Covid-19 vaccine discussions were still underway. Now the government says we should buy our own vaccines,” Mr Mugambe said.

He said the Shs500 billion is slated for purchase of Covid-19 vaccines next year.

Mr Mugambe was speaking during the pre-budget training for the Uganda Parliamentary Press Association in Kampala on Friday.

Affected sectors

 He added that the Budget for governance and security has been slashed because Judiciary and Legislature that were initially under it are now independent programmes.

Judiciary has been allocated Shs373 billion while Legislature (Parliament) has been allocated Shs832 bilion.

Mr Mugambe also pegged the increase on more development donors coming on board to fund some infrastructure projects in the 2021/2022 Financial Year.

Integrated transport infrastructure and services has been allocated extra Shs1 trillion as well as agro-industrialisation and sustainable energy development that have been given extra Shs276b and Shs250b, respectively.

Mr Mugambe said the revised Budget will be presented in Parliament for scrutiny.

Parliament’s concerns

Lawmakers on the Budget Committee last week forced Finance minister Matia Kasaija to withdraw the Shs41.2 trillion Budget on grounds that it was not aligned with the NDP (National Development Plan) III aspirations. Mr Amos Lugoloobi, the Budget Committee chairperson, and other lawmakers had no kind words for Mr Kasaija and his team after discovering that the 2021/2022 Budget contradicts NDPIII. Mr Kasaija was told to draft a new Budget and return to the House today.

But Mr Mugambe on Friday said the revised Budget is aligned to the NDPIII by 62 per cent.

He said the National Planning Authority requires the Budget to be aligned to NDPIII at 70 per cent, saying missing the target by 8 per cent is negligible.