Prime
MPs pass Shs43 trillion Budget for 2022/2023
Members of Parliament during the special sitting to honour deceased Bank of Uganda Governor Emmanuel Tumusiime Mutebile on Thursday. PHOTO / DAVID LUBOWA
What you need to know:
- The approved budget framework presented by the Parliamentary Committee on Budget shows that only Shs27 trillion will be available for spending, while Shs15 trillion will be dedicated to servicing public debt.
Parliament has endorsed a Shs43 trillion Budget for the Financial Year 2022/2023, indicating a decline by Shs1.6 trillion from Shs44.7 trillion for the Financial Year 2021/2022. This decline is an indicator of the downward trend the country has undergone due to the Covid-19 pandemic-induced shock.
The approved budget framework presented by the Parliamentary Committee on Budget shows that only Shs27 trillion will be available for spending, while Shs15 trillion will be dedicated to servicing public debt.
The drop in the funds within the national resource envelope implies that there will be an effect on service delivery.
However, the State Minister for Finance in-charge of Planning, Mr Amos Lugolobi, justifies the decision to slash the Budget, and also scale up funds to contain the debt as a move to keep the economy stable.
“We are trying to manage the economy to make sure we do not land in very difficult situations where we are not able to service our debts,” Mr Lugolobi said.
According to the framework paper, Shs6.9 trillion will go towards human capital development, while governance and security will get Shs6.4 trillion, sustainable energy development (Shs1.1 trillion), agro-industrialisation (Shs1.7 trillion) and regional development (Shs1 trillion).
Additionally, Shs890b will be spent on climate change, natural resource and environment and water management, while Shs686b will go towards the legislation sector.
Among the least funded categories are mineral development at Shs35.6b, manufacturing (Shs79.1b), community mobilisation (Shs72.6b), private sector development (Shs660b), sustainable development of petroleum resources (Shs149.3b) and sustainable urbanisation and housing (Shs427b).
Tourism and development got Shs181.6b, administration of justice (Shs383.9b) and digital transformation (Shs217.7b).
As he presented the framework paper, the vice chairperson of the committee, Mr Ignatius Mudimi, indicated that the government premised the budget framework on the National Development Plan III (NDPIII), whose aim is to increase the country’s hold on income and improve quality.
Mr Mudimi is hopeful that the upcoming financial year will generate more than 200,000 jobs, with 150 expected from agro-industry, 10,000 from tourism, 30 from ICT, 10,000 from urbanisation and housing.
