Private sector budget influence up, says PSFU

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The Private Sector Foundation Uganda (PSFU) said it has achieved an 85% success rate in getting its proposals integrated into the national budget for the coming financial year to support growth and cut the cost of doing business in the economy.

Speaking during a post-budget dialogue at Protea Hotel in Kampala, Stephen Asiimwe, CEO at PSFU, said the score is their highest performance ever in influencing budget policy.

“We actually go down to the field, interrogate and research so that we arrive at well-grounded policy papers,” he said. The goal of the dialogue was to offer accountability to PSFU members on the engagements between PSFU and government, and to consult on other pending issues.

Ramathan Ggoobi, the Permanent Secretary and Secretary to the Treasury, Asiimwe, speaking during a post budget dialogue at Protea Hotel in Kampala. (Courtesy photo)

Asiimwe said PSFU pushed for the clearance of domestic arrears and that the government further promised to cut domestic borrowing. In the next fiscal year, the government allocated sh1.44 trillion to clear domestic arrears, up from sh200b in the current fiscal year.

Ramathan Ggoobi, the Permanent Secretary and Secretary to the Treasury (PSST), defended the fiscal year budget as being full of opportunities for the private sector.

Ggoobi said government’s investments in health, education, social protection, and water in the budget is about sh11.4 trillion. He said direct investments of sh16.7 trillion has been allocated in private sector-related areas, including agro-industrialisation, tourism, minerals, science, technology, and innovation.

Ggoobi clarified that the budget’s program-based approach means funds supporting sectors such as agriculture are distributed across various budget lines, such as the Parish Development Model (PDM), rather than being concentrated solely under the agriculture ministry's direct allocation.

The Private Sector Foundation Uganda (PSFU) said it has achieved an 85% success rate in getting its proposals integrated into the national budget for the coming financial year. (Courtesy photo)

Allan Sseyondwa, director of policy and advocacy at Uganda Manufacturers Association, said there is a need for the reintroduction of cooperatives models to provide farmers with quality seeds, agricultural inputs, and reliable market access.

He said, currently, farmers are burdened with managing everything from sourcing seeds to finding markets.