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Reactions from CSO’s
Followers of budget making process say the proposed budget need to focus mainly on key sectors that supports resuscitating the economy.
The Civil Society Budget Advocacy Group (CSBAG) said in a statement on April.20 that the critical areas of focus in forthcoming financial year should among others include, investing in health systems strengthening to guarantee Ugandans equal access to affordable and quality health services for all, increasing access to clean and safe water, sanitation and hygiene, investing in agriculture production and productivity for income generation and guaranteeing food security, boosting investment and trade.
The CSOs say investing in the key areas will help the country deal with the negative effects caused by COVID-19 pandemic. Uganda had recorded 79 COVID-19 cases since March 21, with 52 recoveries and no death as at the end of April.28.
“We do reiterate our voice, and call on Government Ministries, Departments and Agencies to re-examine their priorities for FY2020/21 budget. This can be achieved by channeling more funding away from consumptive expenditures to those areas with potential to generate high returns to economic growth and protection of the population,” the CSO’s said.
To address some of the challenges that government may face during the new FY, the group says that authorities need to effectively implement the Domestic Revenue Mobilization Strategy, 2019/20 – 2023/24 to boost domestic revenue collection.
In addition, the group says critical research on new tax policies, their effectiveness and implication on citizens need to be undertaken before a tax is imposed to ensure that the tax base increases.
The CSO’s have also urged government to effectively operationalize the ‘Contingency Fund’ as per PFMA, 2015.
“Given the level of panic with the COVID-19 pandemic, we recommend that the Ministry of Finance should comply with the law, to fully operationalize the Contingencies Fund as per section 26, of the PFMA 2015 (as amended),” the CSOs said.
“The current practice violates the Act and deprives the country of an appropriate organized mechanism of responding to disasters. This also distorts the budgeting process when special supplementary budgets are issued to Votes rather than released to the Fund.”
The CSO’s also urged government to adopt stringent austerity measures especially in the post COVID-19 to fasten quick recovery of the economy.
Trend of Uganda’s budget over the last five years
| Year | Budget (trillions) |
| 2020 | 45.4 |
| 2019 | 40 |
| 2018 | 32 |
| 2017 | 22 |
| 2016 | 20 |
Budget estimates FY2020/21 and percentage share of total allocations
| Sectors | FY2019/20 (Billion) | Draft Budget Estimate FY2020/21 (Billion) | % share |
| Works & Transport | 6,425.03 | 5,885.49 | 13.2 |
| ICT & National Guidance | 146.22 | 163.18 | 0.4 |
| Agriculture | 1,054.15 | 1,317.68 | 2.9 |
| Lands, Housing & Urban Development | 227.04 | 213.68 | 0.5 |
| Energy & Mineral Development | 3,007.76 | 2,631.84 | 5.9 |
| Trade and Industry | 212.75 | 174.71 | 0.4 |
| Education | 3,398.52 | 3,514.47 | 7.9 |
| Health | 2,595.38 | 2,743.69 | 6.1 |
| Water and Environment | 1,105.73 | 1,690.74 | 3.8 |
| Social Development | 221.35 | 172.36 | 0.4 |
| Security | 3,656.78 | 4,525.85 | 10.1 |
| Justice, Law and Order | 1,782.13 | 2,098.80 | 4.7 |
| Public Sector Management | 2,432.43 | 672.06 | 1.5 |
| Accountability | 1,798.97 | 2,156.78 | 4.8 |
| Legislature | 687.78 | 667.78 | 1.5 |
| Public Administration | 1,034.29 | 1,331.71 | 3.0 |
| Interest Payments | 10,321.08 | 12,432.49 | 27.8 |
| Science, Technology, and Innovation | 186.78 | 238.11 | 0.5 |
| Tourism | 193.73 | 193.95 | 0.4 |
| Local Government | 0 | 1,868.28 | 4.2 |
| Total | 40,487.90 | 44,693.65 | 100.00 |
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Whether budgeting process or even the budget itself has meaning in Uganda today is a question that may receive as many answers as the people asked. The fact that our budget is subject to substantial changes from the day it is adopted to the day of of report, being subject to “monthly” supplementary requirements and being a perennial dream never realised, makes it a ritualistic document designed to impress whoever bothers to take interest. After failing to achieve target of shs 40.5 trillion and finishing the financial year neck deep in debts this new budget est is now set at shs 45.4 trillion in the midst of the covid-19 pandemic and global lockdown. God help Uganda.
How about the issues of NSSF FUND RELEASE