Uganda’s minister of Finance Matia Kasaija has said that supplementary budget requests are making it hard for his ministry to plan and implement government programmmes.
Speaking at the National Budget Conference on Thursday, September 9, 2020, Mr Kasaija said whereas supplementary budgets are expected in all budgets, they are being misused in Uganda’s case.
For instance, he said whereas international events are planned for ahead of the financial year, but the responsible ministries or departments go to his ministry in the middle of the year and start asking for money. He says that this beats the whole essence or necessity of budgeting.
The Budget Conference seeks to concretize the budget strategy and priorities required to meet the country’s development agenda while addressing current socioeconomic constraints according to the minister.
Budget priorities for the year 2022/23 will include restoration of business activity by increasing access to capital, industrialization focusing on agro-industry and light manufacturing, enhancing wellbeing of Ugandans through improved health and education, and improvement of productive infrastructure.
Kasaija says the next budget and government action will largely be driven by the effects of the Covid-19 pandemic that has disrupted the economic growth momentum.
“We pray that the Almighty God helps us and controls the other waves of COVID-19 that we are hearing about,” Kasaija said.
Before the onset of the pandemic, the Ugandan economy grew at 6.3% in the fiscal year 2017/18, accelerating to an eight-year high of 6.4% in 2018/19, according to the official national figures.
However, according to the minister, the pandemic triggered an economic slowdown and Uganda recorded real GDP growth of 3.0% (lower than the population growth) in 2019/20, the slowest rate in almost three decades. It grew slightly to 3.3% in 2020/21.