House Approves 2023/24 Budget Proposals
Parliament has approved the National Budget Framework Paper, which includes suggestions for a Sh49.98 trillion budget for the fiscal year 2023–2024.
House Approves 2023/24 Budget Proposals
Parliament has approved the National Budget Framework Paper, which includes suggestions for a Sh49.98 trillion budget for the fiscal year 2023–2024.
The Public Finance Management Act, which stipulates that Parliament must adopt the Budget Framework Paper by February 1st, was followed with the passage of the Budget Framework Paper.
The draft budget was approved during a plenary session on Tuesday, January 31, 2023, which was presided over by Deputy Speaker Thomas Tayebwa. The discussion was sparked by the Budget Committee’s reports on the framework and performance of the budget.
The projected budget will be funded by Sh28.8 trillion in domestic revenue, Sh2.4 trillion in budget assistance, Sh1.6 trillion in domestic borrowing, and Sh8 trillion in external project funding.
The other sources are Sh8.7 trillion in domestic refinancing and Sh238.5 billion in local tax collection for the local government.
Starting the building of the Standard Gauge Railway and finishing the rehabilitation of the Meter Gauge Railway under the Integrated Transport program are the government’s top priority.
Under the Agro Industrialization Programme, the government also plans to invest in small-scale solar-powered irrigation systems and deal with issues like food security and climate change.
The Sustainable Energy Development program and the capitalization of the Uganda Development Corporation and Uganda Development Bank to continue supporting private sector development, recovery, and economic change under Private Sector Development are the other priority.
Hon. Herbert Tayebwa, a representative for Kashonzi County, issued a warning against excessive spending in comparison to the government’s meager earnings.
According to him, Uganda should only borrow money for investments and not for personal use.
The Budget Framework Paper, according to the Leader of the Opposition, Hon. Mathias Mpuuga, makes no mention of the high interest rates on loans.
He wondered how much the country was paying annually as debt repayment for Karuma Hydro Power Dam.
The Deputy Speaker, Thomas Tayebwa, expressed worry about reducing discretionary expenditure despite the growth in revenue estimates.
This means that we will be subject to restrictions when redistributing the funds using our appropriation power. Over Sh37 of every $100 in revenue is used to pay off debts, according to Tayebwa.
Only 5.6% of the overall budget has been proposed for programs that directly add value, according to the Deputy Chairperson of the Budget Committee, Hon. Ignatius Wamakuyu Mudimi, and only 4.7% of the whole budget has been set aside for initiatives that build the capacity of the private sector.
In order to finalize the budgeting process, the government will now update the budget projections in light of the suggestions made by the House and present them to the House by 15 March 2023.
