The defence and security has been allocated the biggest share of the 2021/2022 financial year budget.
Whereas the government said the Shs44.7 trillion budget for Financial Year 2021/2022 will be emphasising increased socioeconomic empowerment of ordinary Ugandans, the defence and security docket got Shs6.9 Trillion, up from Shs4.5 trillion in the last financial year. The sectors of health, education and water, grouped as human capital development, have all been allocated Shs7.7 trillion for the next financial year.
Analysts have always blamed the government for abandoning key sectors such as health, education and agriculture at the expense of security, arguing that the country is not at war to warrant such big budget.
But newly appointed state minister for Finance in-charge of Planning Amos Lugoloobi, who presented the budget on Thursday, 10 June 2021, said peace and security is key to facilitating socio-economic development.
“Mr. Speaker, peace and security, the rule of law and good governance, are key to providing a conducive environment to facilitate socio-economic development. Our long-term objective is to maintain peace and security at the community and national level; increase access to justice and enhance effectiveness in public service delivery. Our long-term objective is to maintain peace and security at the community and national level; increase access to justice and enhance effectiveness in public service delivery,” he said.
The minister said the money will be used to acquire, refurbish and maintain military equipment, complete the construction of the Military Referral Hospital in Mbuya and train military medical personnel and procure medical equipment.
The money will also go towards construction of 30,000 housing units for the military, the construction of the military museum, as well as military barracks; and improve urban security with implementation of phase III of the Safe City CCTV project.
Of the Shs44.7 trillion, Shs22.42trillion will be generated from domestic revenue, Shs20.837billion will be tax revenue and Shs1.588 trillion will be Non-Tax Revenue. Domestic borrowing amounts to Shs 2.943 trillion. The Petroleum Fund resource amounts to Shs200 billion and Budget Support Shs3.583 trillion. External financing for projects will amount to Shs6.868 trillion of which Shs5.519 trillion is from loans, and Shs.1.349.4 trillion is from grants. Appropriation in Aid, collected by Local Governments amounts to Shs212.4 billion; and Domestic Debt Refinancing will amount to Shs8.547 trillion.