Poor trade budget irks Parliamentarians

Jun 06, 2007

MPS are worried that the dwindling budget for the trade ministry would affect its performance. According to the budget framework paper for next financial year, the total budgetary provisions for the ministry will reduce by 18.8% from sh37.7b, the previous year to sh30.3b.

By Mary Karugaba

MPS are worried that the dwindling budget for the trade ministry would affect its performance. According to the budget framework paper for next financial year, the total budgetary provisions for the ministry will reduce by 18.8% from sh37.7b, the previous year to sh30.3b.

Scrutinising the ministry’s budget, MPs noted that while the wage and non-wage component have remained constant at sh1.48b and sh2.83b respectively, the domestic development and donor support to the sector had declined by 32.5% and 18.6% respectively.

The MPs called on the Government to increase the sector allocation in order to compensate for the fall in donor support.
They observed that the ministry had remained “totally under funded although tourism is the leading forex earner.”

According to the paper, most donor programmes which have been counter-funding the ministry’s programmes, had either wound up or are in the process of winding up “yet no local capacity has been built to bridge the expenditure gap.”

The MPs also expressed concern that Uganda remains suspended from the World Tourism Organisation (WTO) despite the committee’s previous recommendations to clear all the debts.

“WTO membership contribution has not been provided for this financial year. This remains unfunded priority for the ministry and will create a negative impact given that Uganda is hosting CHOGM (Commonwealth Heads of Government Meeting) this November,” the MPs said.

The ministry owes international organisations $1.2m, euro 50,101 and 8,608 pounds.

The legislators recommended that the planned merger of Uganda Tourist Board, the Uganda Export Promotion Board and Uganda Investment Authority “should be dropped expeditiously since it has been unanimously agreed that it is no longer viable.”

“The ministry is a potential heavy foreign exchange earner for the country. Although tourism is currently the leading foreign exchange earner, the ministry could even do better if proportional amount of funds is injected into its budget and its ceiling is increased to enable it carry out its programmes,” William Oketcho, the budget committee chairman, observed.

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