By Francis Jjunju
The Minister of Finance, Planning and Economic Development, Matia Kasaija has refuted allegations that Uganda‘s economy is at stake despite regional and domestic development factors.
He disclosed this while reading the national budget for financial Year 2017/18 in Kampala, where he said that the economy has been relatively slow due to factors such as insecurity in the neighboring countries that has led to high refugees in the country hence pressure on the country’s expenditure.
Kasaijja added that the high rate of corruption in the country has also led to low service delivery hence impacting on the economy calling for concerted effort to fight together to eliminate such problems for the country to realize the middle income status come 2020.
In some of the highlights within the budget, government has increased budgetary allocations to several sectors with the Science and Technology sector having its budget raised fivefold and Information and Communication Technology having its kitty doubled, although they don’t take the lion’s share of the 2017/18 Budget.
The Works and Transport, Health, Agriculture, Animal Industry and Fisheries, the Justice, Law and Order, and Education sectors have got a special consideration of the UGX 29.8 trillion.
The other sectors that also had their budgets raised are Public Sector Management, Public Administration, Trade, Industry and Tourism.
The Works and Transport ministry will have UGX 4.5 trillion to spend; up from UGX 3.8 trillion, Justice, Law and Order sector has got UGX 1.119 trillion up from UGX.103 trillion, Education sector has got UGX 2.4 trillion whereas the ministry of Science and Technology has got almost a five times increment getting UGX 71.9 billion, an increase from UGX14.2 billion and Information and Communication Technology (ICT) has got UGX104.3 billion up from UGX 55.3 billion.
Public sector management will spend UGX 1.4 trillion, up from Shs1.2 trillion, the Legislature’s has been increased from UGS 470 billion to UGX 483 billion whereas the Trade, Tourism and Industry ministry has got UGX 116 billion from UGX 89.6 billion it got last financial year.
According to Background to the Budget, the allocation to the Security sector will drop from Shs1.5 trillion to Shs1.4 trillion, for Health from Shs1.827 trillion to Shs1.823 trillion, and that for Water and Environment from Shs689 billion to Shs632 billion.
Similarly, the allocation to the Energy and Mineral Development sector will be reduced from Shs2.377 trillion to Shs2.319 trillion.
Ugandans will have to part with Shs2.6 trillion, up from Shs2 trillion, to pay interest on loans the government has taken over the years.
Matia Kasaija said the budgetary increments in Works and Transport sector, is meant for the completion of the ongoing road projects, for Agriculture it has to improve on productivity to ensure food security through the government’s plan to mechanise agriculture, provide inputs such as seedlings and appropriate technologies and storage centers.
For the ICT, the government wants to extend the National Backbone Infrastructure from central and eastern Uganda to the northeast.
On tax policies, the winners include animal feeds and pre-mixes dealers, crop extension services, irrigation equipment, solar batteries, and menstrual caps, which government has exempted from the Value Added Tax (VAT).
But it’s said this will one of the toughest budgets for Ugandans because URA wants to collect UGX 14.5 trillion from the citizens.
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