Parliament has commended the countrywide assessment of the sh52 trillion national budget for the current financial year.
Uganda’s Deputy Speaker, Thomas Tayebwa, has initiated the budgeting cycle, emphasizing the importance of parliamentary committees reviewing the performance of the shs52 trillion budget.
“We have started receiving medium-term expenditure frameworks, which means the budgeting process has started in Parliament. Money that was appropriated in the last financial year, we see reports on paper, but we need to see it on the ground,” Tayebwa said.
“I will be joining you on some of those visits so that we see what is done. Can we go and see these important activities for which we appropriated money? If we do it for some time, we shall be able to help, especially with oversight,” he added.
He stressed that each committee must present its findings upon their return, aiming to enhance budget performance.
Some lawmakers have called for realistic budgeting to prevent shortfalls that affect service delivery.
Nathan Byanyima (NRM, Bukanga North County) pointed out that several districts are struggling with poor roads due to the finance ministry’s failure to release funds.
“There are no releases, it is air supply. We would rather have a budget that concentrates on one sector and accomplishes something rather than making unfulfilled promises each year,” Byanyima said.
Prof. Elijah Mushemeza (Indep. Sheema County South) urged the government to ensure that expenditure matches available revenue.
“Is it still realistic to pass a budget of sh52 trillion, considering the debt servicing and the challenges of borrowing in the global environment?” he questioned.
The Deputy Speaker called for smart budgeting, emphasizing the need to consider proposed revenue in tax bills.
“A good example is when the government shows revenue side and expenditure side and says we want to raise this much from taxes, but when it comes to handling tax bills, we reject some amendments which could be worth sh500 billion, and yet we continue to appropriate the actual amount,” he said.
Tayebwa added, “We should now start communicating together. If we reject certain tax proposals, can we have them costed, and if not adopted, strike that amount off the budget. Otherwise, you are appropriating air, and then when the minister starts surprising, we complain.”
The Minister of State for Finance, Planning, and Economic Development (General Duties), Henry Musasizi, attributed budget financing challenges to the mismatch between releases and actual cash realization.
“It is not our intention, and I want to ask colleagues to understand the circumstances and walk with us because we must speak the same language,” he said.
Next Fiscal Year’s Budget Strategy
In September this year, the Ugandan government revealed key priority areas in the national budget for the 2024/2025 financial year.
The budget will focus on building an independent, self-sustaining economy, ensuring security, good governance, rule of law, and maintaining macroeconomic stability to accelerate economic growth.
The government intends to boost household incomes through the Parish Development Model (PDM), agricultural commercialization, development of the oil and gas industry, investment in tourism, and support for the private sector, among other priority areas.
“The ultimate goal of the Budget Strategy for FY2024/2025 is to accelerate economic growth to at least 7% in the medium term with the ultimate goal of building an independent, integrated, and self-sustaining economy,” Matia Kasaija, the minister of finance, planning and economic development, said.
The total resource envelope for the next financial year’s budget will amount to sh52.72 trillion compared to sh52.74 trillion for the current financial year (2023/2024).
Preliminary domestic revenue is projected to increase to sh29.9 trillion in FY2024/25 from sh29.6 trillion in the current financial year.
The budget strategy outlines interventions required to achieve a faster socio-economic transformation of Uganda.
The theme for the implementation of next year’s budget will be “Full Monetization of Uganda’s Economy Through Commercial Agriculture, Industrialization, Expanding and Broadening Services, Digital Transformation, and Market Access.”
The size of Uganda’s economy is expected to grow from UGX.184.3 trillion in FY2023/24 to UGX. 234.44 trillion in FY 2024/2025, equivalent to US$ 63.36 billion at market prices, largely driven by growth in industry, services, and agriculture sectors. The government will focus on strengthening the Parish Development Model to move people from non-cash to cash economy.
For improved human capital development, the government intends to prioritize health, education, and water for the well-being of Ugandans. Measures like the establishment of the National Health Insurance Scheme (NHIS) and efficient resource allocation in the health sector will be emphasized.
