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A glance at 2011/12 budget

By Vision Reporter

Added 14th June 2012 03:56 PM

Finance minister Maria Kiwanuka delivered her maiden 2011/12 financial year budget to Parliament.

A glance at 2011/12 budget

Finance minister Maria Kiwanuka delivered her maiden 2011/12 financial year budget to Parliament.

 By Paul Busharizi and Apollo Mubiru

Finance minister Maria Kiwanuka delivered her maiden 2011/12 financial year budget to Parliament.

The presentation of the budget was held at the Serena conference centre in Kampala.

The finance minister presented the budget on behalf of the President who later commented about the figures after the presentation.

Kiwanuka’s maiden budget speech put emphasis on infrastructural development and social service delivery.

Education, health, roads and energy sectors will take just over half of the sh8trillion budget planned for the coming financial year.

Economic growth
 The total national output of goods and services, the Gross Domestic Products (GDP) rebounded, growing at 6.3 percent compared to 5.5 percent in the previous financial year.

Agriculture
The livestock sector grew by 3.0 percent while food production registered 7.5 percent compared to 6.5 percent in the previous financial year.

 Industry
Industrial production improved at estimated growth of 7.5 percent as compared to 6.5 percent in the previous year.
Challenges to budget performance.

Development challenges include inadequate physical infrastructure, limited supply to critical production inputs, inadequate skills base and social infrastructure, inappropriate mindset, attitude and culture, limited access to financial services and unemployment.

Budget highlights
    UP
Levy on hides and skins doubled to $0.8 per kg from $0.4
Sh96b more for drugs
Sh24b more for maternal and reproductive care
Sh58.8b more for universal education up to A-level and Business and Vocational education
Sh44.5b for creating jobs
Sh5b for irrigation and water harvesting
Sh2b for rehabilitation of small warehouse around the country
Sh200m for preparatory work of restocking north and north east
Sh133b for commercialization of improved seeds and planting material
Sh43b for maintenance and rehab of Kla roads
 Sh1,219.41b for transport
 DOWN
 Supply of solar energy VAT exempt
Removal of VAT on ambulances
Reduce excise duty on sugar by 50%
Removal of excise duty on paraffin
Import duty on hoes down to 0% from 10%
Import duty on food supplements down to 10% from 25%
 Remove import duty on pre-mixes for animal and poultry feeds

 CUTS ON PUBLIC EXPENDITURE
 50 pct cuts in advertising in budgets for ministries and agencies
30 pct cuts in workshop, travel, vehicle, priniting and stationary, entertainment and welfare and newspapers
Freeze govt vehicle purchases
Forensic audit on government salaries, wages and pensions

  GENERAL
Budget will be sh9,840b a domestic revenue sh6,330b donor funds sh2,900b
Economy grew by 6.3 pct compared to 5.5pct

OTHERS
 Rehabilitation of Mulago and building of a Maternal and child health center
Build district hospitals in Kawempe and Makindye divisions

Priority sectors

 According to the National Budget Framework Paper 2011/12 -2015/16, which is an official government document, education, health, roads and energy sectors will take just over half of the sh9trillion budget planned for 2011/12 financial year.

Education takes lion’s share
Education has the highest allocation of the budget at 15.5%, but the energy and mineral development sector enjoys a threefold jump in funds allocated to it compared to last year largely on the strength of sh828.6b earmarked for the construction of Karuma power dam.

Accountability sector budget doubles
The accountability sector, which encompasses the anti-corruption agencies, also has also seen a 50% jump in its budget second only to energy.

 Pubic administration budget slashed

 Public administration will take the biggest budget cut, losing a quarter of its allocation from last year’s budget, a trend that has continued from the previous year's budget.

Focus on service delivery

The general tone of the budget is in line with the NRM’s manifesto that promised better service delivery and infrastructural development.

 

A glance at 2011/12 budget

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