Finance Minister while presenting the budget on Thursday
The Government of Uganda on Thursday, 15 June 2023, read the National Budget for Financial Year 2023/24, which the minister said is geared towards full monetization of the economy through commercial agriculture, industrialisation, expanding and broadening services, digital transformation and market access.
According to the budget read by Finance Minister Matia Kasaija, the 52.7 trillion total national budget is to be financed with 29.7 trillion, of which 27.4 trillion is tax revenue and2.3 trillion Non-Tax Revenue (NTR).
Domestic borrowing amounts to 3.2 trillion, budget support accounts for 2.8 trillion, external financing for projects 8.3 trillion (3.01 trillion grants and 5.3 trillion loans), Appropriation in Aid, collected by Local Governments 287 billion, Domestic Debt Refinancing will amount to 8.4 trillion, and other financing is 229.0 billion.
Out of the total expenditure 52.7 trillion, government will spend 7.3 trillion on wages and salaries and 13.5 trillion on Non-wage Recurrent Expenditure.
Government’s development expenditure amounts to 6.1 trillion while external project support financing is 8.3 trillion. Government also plan to spend 215.8 billion on settling domestic arrears and external debt repayments of 2.6 trillion and interest payments of 6.1 trillion, will be made.
Kasaija said the Parish Development Model and Emyooga wealth creation initiatives will be well financed in the next financial year to boost household incomes and the growth of small businesses.
The PDM has been allocated Shs1.1 trillion under the new budget, Shs1 billion having been added to its previous allocation. It is hoped that this will stimulate the creation of 2.5 million jobs over the next five years.
Next financial year, Shs100 billion has been allocated to the Emyooga initiative.
“These SACCOs have also mobilized savings of Shs. 76 billion, and a further Shs. 80 billion recovered from the loans given to beneficiaries. This demonstrates the sustainability of the Emyooga initiative,” the minister said.
Shs. 2.2 trillion has been allocated for food security, irrigation, climate change mitigation, value chain development, agricultural research and disease control, among others
SMEs in the manufacturing and export sectors will be supported by the US$ 200 million World Bank Investment for Industrial Transformation and Employment (INVITE) Project that will provide grants and concessional credit to qualifying SMEs. These SMEs will access new and innovative financing products with long term financing of up to 15 years. This intervention aims at increasing Ugandan manufactured export products, generate direct and indirect jobs for more than 200,000 workers, and safeguard existing jobs for 530,000 workers.
“Madam Speaker, an allocation of Shs 209.3 billion has been provided through the INVITE Project for next financial year,” Kasaija said.
The minister also said Shs. 249 billion has been allocated for the promotion of Tourism.
Government will in the next few weeks resolve the plight of medical interns and doctors designated as senior house officers, in view of their important role in supporting the healthcare system.
“In the meantime, I have provided Shs. 22.6 billion to clear outstanding arrears for medical interns and senior house officers for the financial year ending June 2023,” the minister said.
Interventions that build human capital such as education have been allocated Shs. 9.6 trillion.
An allocation of Shs. 4.5 trillion, representing 13.3% of the total budget, has been budgeted for road maintenance and construction, railway development and rehabilitation, water and air transport development. Of particular significance, an allocation of Shs I billion has been provided to each District, City and Municipality for road grading, murram and compacting. In total, Shs 176 billion has been allocated for this purpose.
The government has also secured US$ 608.7 million (equivalent to Shs. 2.25 Trillion) to address flooding, traffic congestion, poor road infrastructure, un-signalized junctions and unemployment in the Greater Kampala Metropolitan Area (GKMA) covering Kampala, Wakiso, Mukono and Mpigi districts and their municipalities. This will upgrade 504 km of roads including junction signalization in 8 urban authorities; rehabilitation of 30 storm water drainage points; upgrade 23 markets and construct 25 artisanal parks and industrial work spaces for small scale manufactures.
Next financial year, Shs. 1.3 trillion has been allocated for Electricity interventions.
An allocation of Shs. 192 billion has been provided to accelerate digital transformation.
The government also allocated Shs.447 billion to fast track the development of petroleum resources next financial year
Another Shs. 257 billion to support science, innovation and technology development has been provided.
Security, governance, the legislature and the administration of justice have been allocated, Shs. 9.1 trillion next financial year, up from Shs. 8.1 trillion this financial year.
President Yoweri Museveni delivered his Budget remarks via Zoom and he noted that it was imperative for the country to reduce on public borrowing or even not borrow at all.
The President also reiterated his message on value addition saying that now that Uganda has good roads, electricity and building railway system, effort must be made to add value to all the country’s products.
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