Uganda's budget hits another milestone

By Paul Busharizi

KAMPALA - There will be no surprises when finance minister Matia Kasaija reads his maiden budget today (Thursday) afternoon.

Under the recently enacted Public Finance Management Act 2015, the budget is supposed to be passed before it is read.

Previously the budget reading kicked off a process of parliamentary debate and approval that lasted until October of the new financial year.

As a result the broad framework of this year’s budget has already been thrashed out in parliament and is widely known.

As has been the custom in recent years, the budget comes in heavily weighted towards the works, energy, education and health sectors.

But under the new act, debt repayments due to government borrowing using treasury bills and bonds come into the budget, and at sh6.4 trillion, constitute the largest single call on the Consolidated Fund, according to official papers submitted in parliament last month.

This single issue which pushed the government budget to sh24 trillion for the first time ever, has had the government’s critics up in arms accusing President Yoweri Museveni’s government of pushing the country further and further into debt.

This debt repayment accounted for a quarter of the budget.

However finance ministry officials said the obligation was already there and provided for.