Donors worried over high public spending

May 12, 2005

DONORS have expressed concern over increasing public expenditure, despite the Government’s commitment to reducing it

DONORS have expressed concern over increasing public expenditure, despite the Government’s commitment to reducing it writes Anne Mugisa.

The World Bank country director, Grace Yabrudy, who presented the donors’ statement at a public expenditure review workshop at Speke Resort Munyonyo on Tuesday, said Uganda, one of the first African countries to adopt a structured and participatory process in national budget formulation and execution, had made progress.

“This process has matured into an established mechanism to direct government spending on priority areas for the provision of key public services. I applaud the Government for spearheading this inclusive process,” Yabrudy said.

The parliamentary committee chairperson, Beatrice Kiraso (Kabarole Woman), recommended reduction of expenditure of political institutions, including Parliament, political appointees, local governments, urban authorities and statutory bodies.

The donors also commended the Government on the Poverty eradication Action Plan (PEAP), saying progress had been made in reflecting PEAP priorities for 2005/06.

Yabrudy said the donors were unable to support the budget for 2004/05 due to a proposed increase in defence spending. “We welcome the decision to limit defence spending and allocate more resources to PEAP,” she said.

(adsbygoogle = window.adsbygoogle || []).push({});