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Parliament has commended the countrywide assessment of the sh52 trillion national budget for the current financial year.

Deputy Speaker Thomas Tayebwa said Parliament has started the new budgeting cycle, observing the need for committees to review how the shs52 trillion budget has performed.

“We have started receiving medium-term expenditure frameworks, which means the budgeting process has started in Parliament. Money that was appropriated in last financial year, we see reports on paper, but we need to see it on 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 on the oversight,” he added.

He said that upon their return, each committee will be required to present findings on the Floor with the aim of improving budget performance.

Some lawmakers have urged government to be realistic while making budgets, to avoid cases of shortfalls that subsequently affect service delivery.

Nathan Byanyima (NRM, Bukanga North County) said that several districts are grappling with poor roads due to the failure of the finance ministry to release funds.

“There are no releases, it is air supply. We would rather have a budget that is concentrating on one sector and we have something to feel that has been done rather than every year saying this will be done and we end up not doing anything,” Byanyima said.

Prof Elijah Mushemeza (Indep. Sheema County South) urged government to ensure that expenditure tallies with available revenue.

“It is high time for MPs to be realistic, coming up with a budget of sh52 trillion when we know what the Uganda Revenue Authority collects. Given the debt servicing and the hostile global environment in terms of borrowing, is it still realistic to pass a budget of sh52 trillion,” he said.

The Deputy Speaker called for smart budgeting, saying that it entails consideration of proposed revenue in tax Bills. 

“A good example is when 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 then after they are cost and not adopted, we 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, blamed the challenges in financing of the budget for mismatch between the releases and actual realisation of cash.

“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, Government revealed key priority areas of focus in the national budget for 2024/2025 financial year. 

To accelerate economic growth, the budget will focus on building an integrated independent, and self-sustaining economy by ensuring security, good governance, and rule of law as well as, maintaining macroeconomic stability.

The government also intends to use the budget, to boost household incomes through the Parish Development Model (PDM), commercialization of agriculture, development of the oil and gas industry, investment in tourism, and support of 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.

Kasaija said this will involve transitioning from a raw-materials-based to a manufacturing and knowledge-based economy; as well as improving the environment of doing business in Uganda and making it competitive.

According to the strategy, 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).

Presenting the budget strategy, during the national budget conference in Kampala, Kasaija the minister of finance planning and economic development said, due to the large debt servicing costs, the government resources available for allocation have reduced to sh21.73 trillion for FY 2024/25, from sh25.2 trillion.

“Other emerging government priorities will be financed within the principles of the fiscal consideration agenda,” Kasaija said.

The strategy indicates that Preliminary domestic revenue is projected to increase to sh29.9 trillion in FY2024/25 from sh29.6 trillion in the current financial year.

The Budge Strategy for FY 2024/2025 outlines interventions required to achieve a faster socio-economic transformation of Uganda.

Just like under the current financial year, the government has maintained the theme for the implementation of next year’s budget.

The theme according to Kasaija will be “Full Monetization of Uganda’s Economy Through Commercial Agriculture, Industrialization, Expanding and Broadening Services, Digital Transformation and Market Access.”

The implementation of strategic interventions such as the Parish Development Model (PDM) for full monetization of Uganda, development of the minerals sector, agro- industrialization, and manufacturing among others, will spur economic growth to 6% by the end of FY2023/24 and to 6.5% in FY2024/2025 and therefore accelerate to an average of at least 7% over the medium term.

“This will largely be driven by growth in industry, services, and agriculture sectors of the economy. On that account, the size of 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,” Kasaija said.

According to the government, during the next financial year and beyond, the strategy of implementation of PDM will be strengthened to ensure all the seven pillars are effectively implemented by the respective MDAs for attainment of the intended goal of moving all people from non-cash to cash economy.

For improved human capital development, the government during the next financial year, intends to priorities health, education, and water for the well-being of Ugandans.

“We are looking at fast-tracking the establishment of the National Health Insurance Scheme (NHIS) and improving the allocative and technical efficiency in the provision of financial resources in the health sector with focus on prevention against curative,” Kasaija said.