No more funding for UgIFT program, says minister Anite
State Minister for Investment and Privatisation Evelyn Anite addresses leaders in West Nile Sub-region in Arua City on September 18, 2024. PHOTO/COURTESY
What you need to know:
- The minister further disclosed that the National Development Plan (NDP4) is due to commence next financial year in line with President Museveni’s ambitious plan to grow Uganda’s economy 10-fold by 2040.
Government has warned that there will not be any further extension to the Uganda Inter-Governmental Fiscal Transfer (UgIFT) program.
UgIFT, is a program aimed at enhancing service delivery in education, health and water sectors across Uganda’s 146 districts. The program funded by the World Bank to a tune of Shs2 trillion, is expected to close on December 31, 2025.
On Wednesday, state minister for investment and privatization Evelyn Anite told West Nile Sub-region leaders that the UgIFT, which is supervised by the Ministry of Finance, will not get additional funding beyond next year.
“Please note that the USMID Project ended in June 2024 and UgIFT will end in December 2025. For UgIFT, following the extension of the financing by 18 months, you are implored to complete all projects by the end of this financial year. There will be no further extension,” Anite said in Arua City, during the local government budget consultative workshops for the Financial Year 2025/26.
During the Wednesday meeting, Anite urged West Nile leaders to work together to get the people of West Nile out of poverty.
She further disclosed that the National Development Plan (NDP4) is due to commence next financial year in line with President Museveni’s ambitious plan to grow Uganda’s economy 10-fold by 2040.
"Growing the economy ten-fold by 2040 requires shifting to a higher growth trajectory of propelling the economy to double-digit growth; raising the tax-to-GDP ratio to 30 percent," the minister noted.
She said effective FY 2023/24, Shs1 billion was provided to all local governments for road maintenance besides funds provided under Uganda Road Fund.
“This allocation has been maintained in the Budget for FY 2024/25 and in FY 2025/26 to enable you to improve on road networks. I implore you to prioritise maintenance of the most productive road networks to stimulate economic activity within your respective jurisdictions,” she said.
According to Anite, government is working to resolve Local Government staffing challenges that average 60 per cent of the approved structure. She said on government request, the Auditor General undertook a special Payroll Audit during FY 2023/24 and made a number of recommendations.
“These recommendations have guided the wage adjustments in FY 2024/25 and will provide a basis for FY 2025/26 wage allocations. I urge you to avoid shortfalls occasioned by wrong wage distribution across budget categories; poor wage analysis; wrong budgeting,” she said.
