Free Donor Funds, W. Bank Tells Govt

Nov 12, 2002

DONORS have asked the Government to open up space to allow more donor money to be injected into the economy to run different projects, reports <b>Charles Ariko.</b>

DONORS have asked the Government to open up space to allow more donor money to be injected into the economy to run different projects, reports Charles Ariko.
David Nelson, a World Bank official, on Friday said the Government should allow funds earmarked for certain projects to be included in the national budget instead of permitting only a fraction of the funds. He said this was likely to slow down some of the projects.
The Government, under the Medium Term Expenditure Framework, has on some occasions refused whole amounts of donor funds to be included within the national budget for fear of escalating inflation and other macro-economic factors.
Nelson told a mid-year planning meeting attended by Government officials and donors that much as donors were willing to fund a sh19.9b budget for the National Agricultural Advisory Services (NAADS) next year, they were disappointed when the Government declined including sh12.6b in the national budget last year.
Joseph Kyamanywa, NAADS financial controller, said the Government last year provided only sh9.5 for NAADS in its national budget ceiling out of sh12.6b that the donors had accepted to fund. Ends

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