Civil society wants coffee exported as finished product

By Nicholas Wassajja

Civil society organisations (CSOs) have called on government to emphasize value addition in exporting Uganda coffee beginning with 2015/16 financial year.

CSOs said government should shift policy and zeal to ensuring that no coffee is exported as bean ever again but rather as a finished processed product.

Led by Civil Society Budget Advocacy Group (CSBAG), they noted that the move will contribute to job creation and expand the tax revenue base.

Addressing a press conference on the proposed national budget priorities yesterday, CSBAG coordinator Julius Mukunda proposed that, “under the Public Private Partnership modalities, coffee roasting firms should be supported to grow in value chain capacity beginning with 2015/16 financial year.”

According to the draft of the national budget framework paper FY2015/16, Uganda has in the recent past registered a current account measure deficit indicating that the value earned from exports is lower compared to imports with USD 423.2 in 2013/14 doubling to USD 817.4 in 2014/15.

Mukunda argued that although supplementary budgeting is unavoidable under unforeseeable circumstances, there is concern that persistent budget indiscipline undermines the essence of prudent planning.

He said, “much as it is important, things like asking for a supplementary budget to facilitate RDCs and their deputies to carry out their mandate erodes public confidence in the process.”

Mukunda decried the proposed budget cuts to social sectors like agriculture, education, health and the slow progress in implementation of the public finance management Act, 2015.

“It is disheartening that we can afford public administration and interest payment while sending agriculture and education to the dogs,” he explained.

The proposed budget has reduced health by 317.4b from 1281b, education by 45.3b from 2026.6b and agriculture by 56.7b from 473.3b while it increased public administration by 155.3b from 554.8b and interest payment 678.4b from 1082.9b.

However, Mukunda applauded government for the enactment of the public finance management act 2015, citing that, “we appreciate government because the law if operationalize, will enhance public finance management and promote value for money.”

He also commanded government for the timely release and access to budget information during the financial year 2014/15 and management of inflation.

Mukunda said that, “since July 2011, government has made strides to manage inflation with an overall headline inflation below the target of 5% but to heighten this achievement; we expect mechanisms for the agricultural sector to guarantee steady food production and supply through the financial year.”

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