Cost of running govt rises to Shs3 trillion

The money is spread out into three separate allocations listed as: public sector management; the legislature; and public administration.

A source at the Finance ministry told Saturday Monitor that the split of the allocations is informed by “status.” 

Mr Julius Mukunda, the executive director of the CSBAG, however, opines that the split is merely an attempt to conceal the high price Ugandan taxpayers are paying for public administration.

“The reason why they separated public sector management and public administration was that the cost of running government would be very high,” Mr Mukunda reasoned.

The figures show that public sector management was allocated Shs677.7 billion, the legislature Shs672.8 billion and public administration Shs1.35 trillion in FY 2020/2021.

This totalled to Shs2.7 trillion, making the outlay a few hundred million shillings less than the Shs2.788 trillion allocated to the health sector. 

The outlay was more than twice what was allocated to the agriculture sector (Shs1.33 trillion).

This is in spite of the fact that the agriculture sector is the backbone of Uganda’s economy.

Figures from the World Bank indicate that the much-maligned sector generates about 24 percent of the country’s Gross Domestic Product (GDP) and accounts for more than half of the export earnings.

The outlay on public administration in FY 2020/2021 also by far eclipsed what was ring-fenced for the sectors of trade and industry as well as lands and urban development.

Growing numbers
The allocations per sector indicate that expenditure has been rising by billions over the years.

In FY 2008/2007, for instance, public sector management was allocated Shs235.89b, the legislature Shs68.789b and public administration Shs300.8b. That took the outlay to slightly more than Shs645b.

The amount rose to Shs1.491t in the FY 2011/2012, with public sector management taking Shs1.089t, the legislature more than Shs162.7b, and public administration Shs239b.

The allocations to the same three areas had more than tripled by FY 2016/2017, rising to Shs2.36t. Public sector management was allocated Shs1.348t, legislature Shs470b and public administration Shs541.6b.

Whereas the allocation to the public sector management reduced from Shs1.348t to Shs677.7b in FY 2020/2021, the allocations to the Legislature and the public administration sectors increased from Shs470b and Shs541.6b to Shs672.8b and Shs1.35t, respectively.

This essentially meant that the allocation to public administration shot up to Shs2.7t, signifying an increment of more than Shs34b.

Dr Chris Baryomunsi, the Information Communication Technology and National Guidance minister, attributes that rise to the construction of a new chamber of Parliament.

A 2021 study showed that the cost of maintaining the 11th Parliament rose in the excess of Shs50b after the creation of 46 counties in July 2020.

The new counties increased the number of lawmakers to 514 from the 457 (inclusive of a dozen ex-officio members) in the 10th Parliament.  

Consumptive activity
The House is, however, not alone in driving up the country’s cost of administration. The State House and the Office of the President have also been red-flagged.

The latter is reported to have spent Shs258.5t on staff salaries over a seven-year period between FY 2015/2016 and FY 2022/2023.

The figures do not include what both the State House and Office of the President were allocated during FY 2017/2018. Data for that year was not readily available.

During the aforesaid seven-year period, the Office of the President spent Shs258.5b on staff salaries.

That works to an average of a little more than Shs43b per year. The 2014/2015 ministerial policy statement for the Office of the President indicated that the office had 826 employees, with 760 of them working as administrative support to the President.

There are also 163 presidential advisors and assistants whose annual wage bill—as per the policy statement for the Office of the President for FY 2017/2018—stood at Shs29b.

The army of advisors and assistants are also entitled to chauffeur-driven vehicles and security detail.

There are also more than 122 Resident District Commissions (RDCs), each of whom is entitled to a salary of Shs2.2m and Shs1.6m in allowances.

Each RDC is also entitled to a pick-up truck. There are also 82 deputy RDCs and assistant RDCs whose emoluments are not clear.

Sections of civil society have been calling for the abolition of the office of the RDC, a call that Dr Baryomunsi is quick to dismiss.

“RDCs play an important role in linking the central government with the local government. Whether Civil Society sees them as not useful, that is their opinion,” he reasoned, adding that “the opinion of [the] government is that they remain necessary and we have to continue supporting those offices.”

Bigger not better?
Mr Mukunda says legislation that led to the rise in the number of districts from 111 to 146 between 2015 and 2022 had contributed to the astronomical rise in the cost of public administration.

“Who demands for the creation of the districts? There are reasons we create those administrative units and I can tell you the bigger majority of Ugandans appreciate having those districts to address their peculiar concerns,” Dr Baryomunsi opined.

The sizes of Cabinet and Parliament have also been growing with every election cycle. With 82 ministers and more than 500 lawmakers, the size of Uganda’s Cabinet and Parliament takes a beating.

The lawmakers are entitled to a raft of allowances, including a one-off vehicle allowance of Shs150m; a monthly salary of around Shs25m; a subsistence allowance of Shs4.5m; a town running allowance of Shs1m per month; a medical allowance of Shs500,000 per a month; and mileage allowances.

Mr Arthur Bainomugisha, the executive director of Advocates Coalition for Development and Environment (ACODE), says a reduction in the size of Cabinet and Parliament will substantially bring down the cost of public expenditure.

“The Cabinet is very big and the cost of remuneration of those members is so high. If [President Museveni] does a reshuffle, he can reduce the size of the Cabinet. There is also a lot of expenditure on people who think their security is in jeopardy and, therefore, you have these convoys,” Dr Bainomugisha told Monitor.

Dr Baryomunsi, however, notes that calls for the scrapping of the post of RDC and reducing the sizes of Parliament and Cabinet would require constitutional amendments.

In the meantime, he adds, those who are agitating for such action should channel their energies on finding ways of growing the economy.

Govt response.  

“What is important in the medium and long-term is to widen the tax base and strengthen the economy so that we are able to raise adequate revenue to finance service delivery, but to say that the problem is having many RDCs, MPs and Cabinet ministers is to miss the point,” Dr Chris Baryomunsi, the ICT and National Guidance minister.