Parliament passes sh40.5 trillion budget

BUDGET     PARLIAMENT     COMMITTEE

Parliament has today passed the 40.5 trillion budget for the next financial year and it will have a 20 percent increment compared to last year's 32 trillion.

In this budget government plans to spend 10.6 trillion on its operations, 7.7 trillion is development budget while 9.4 trillion is external financing.

The works ministry has received 6.4 trillion, education 3.2 trillion, energy 2.9 trillion, health 2.5 trillion, security 3.6 trillion ,agriculture one trillion, justice law and order 1.6 trillion, accountability 1.9 trillion.

Some of the ministries have received a reduction in their funds and these include water and environment from 1.2 trillion to one trillion, lands and housing from 202 billion to 193 billion , science and technology 184 billion to 159 billion.

 The budget for the next financial year is expected to be financed through different avenues with Uganda revenue authority expected to collect 18 trillion, 1.4 trillion from non-tax revenue , petroleum fund 445 billion, local government 201 billion and 8.5 trillion will be from domestic borrowing while 10 trillion will be from external financing.

Meanwhile, the budget committee has shown concern over the inflated figures of domestic arrears by government agencies of 2.8 trillion shillings.

The committee report noted that even though government developed a domestic arrears management strategy  meant to guide the effective management of domestic arrears, the stock of domestic arrears has continued to grow over time.

The committee notes that out of the 2.8 trillion shillings government indicates belongs to domestic arrears , only 1.2 trillion was valid with 373 billion is contested where as  462 billion was rejected.

The committee has also called for putting in place an investment plan for the utilization of the petroleum fund before the resources are depleted noting that the fund as of December stood at sh288b down from sh470b

Butambala County MP Muwanga Kivumbi says that the plan will help in understanding how government spends this money.