Parliament has Friday passed a Shs 40.5 trillion national budget for the next financial year 2019/20 with a 20 percent increment from last financial year’s budget which stood at Shs 32 trillion.
The total proposed annual budget for FY 2019/20 as originally submitted to Parliament by the Minister of Finance on March 28 amounted to Shs 39.5tn, of which Shs 27.2tn (69% to the total) is due for appropriation and Shs 12.2tn (31% of the total) is for Statutory Expenditure charged directly on the Consolidated Fund.
However, on May 9, the Minister of Finance submitted Corrigenda to the draft estimates and an addendum to the Corrigenda which revised the total proposed annual budget to Shs 40.8tn out of which Shs 27.9 trillion is for appropriation while Shs 12.5 trillion is meant for statutory expenditure.
Under the same budget, government plans to spend Shs 10.6 trillion on its operations, Shs 7.7 trillion is meant for development budget while Shs 9.4 trillion is external financing.
The works and transport sector has received Shs 6.4 trillion, education will get Shs 3.2 trillion, energy will get Shs 2.9 trillion, the health sector will get Shs 2.5 trillion while security takes Shs 3.6 trillion.
The agricultural sector will get Shs 1 trillion, justice and law and order gets Shs 1.6 trillion while the accountability sector takes Shs 1.9 trillion.
Some of the Ministries have received a reduction in their funds and these include that of Water and Environment from Shs 1.2 trillion to Shs 1 trillion, Lands and Housing from Shs 202bn to Shs 193bn, Science and Technology from Shs 184bn to Shs 159bn.
“In terms of sectoral allocations, Works and Transport will account for 16.2% with the largest Sectoral allocation of UGX 6,406.8 billion, followed by Security at 9.1% of the total Sectoral allocation, ” said the Committee Chairperson, Amos Lugoloobi.
The increment in the works and transport sector comes as no surprise given that President Yoweri Museveni continues to prioritize investment in improving road infrastructure which he says is critical in spurring economic growth.
“The least allocated sector in the budget is ICT and National Guidance Sector accorded 0.3% of the national budget. The sector with the biggest proposed increment of Shs. 1,620 billion is the Works and Transport Sector,” Lugoloobi added.
The budget for the next financial year is expected to be financed through different avenues with Uganda Revenue Authority expected to collect Shs 18 trillion, Shs 1.4 trillion from non-tax revenue of Shs 1.4 trillion, Petroleum fund Shs 445 billion, Local Government Shs 201 billion and Shs 8.5 trillion will be from domestic borrowing while Shs 10 trillion will be from external financing.