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A snapshot of Uganda’s 2018/19 Budget: Winners and losers exposed

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Ugandans on June 14, 2018 listen to the Finance Minister Matia Kasaija as he reads the 2018/19 Budget at the Serena International Conference Centre. They will be attentive to hear which sector has received more funds and which sector has received less funds.

The money is earmarked to be distributed amongst 18 sectors of government.

According to the Budget Framework Paper 2018/19, the works and transport sector will still enjoy the lion’s share of about Shs4.707 trillion (21 per cent) while Science, Technology and Innovation will take the least share of Shs71.8 billion (0.3 per cent) percent, which is less than Shs71.9 billion received last year.

Last financial year Works and Transport was allocated about Shs4.587 trillion or 20.8 per cent of the total budget of Shs29 trillion. That means its allocation for the upcoming financial year has increased by 1 percent.
Interest payments

Minister Kasaija has earmarked Interest Payments of Shs2.701 trillion which is 12.3 per cent of the total budget but an increase of 0.3 per cent when compared to the allocations it received in the financial year 2017/19. Like the current financial year, Interest payment is second to Works and Transport in terms of resource allocations but it also signifies that government is committed to paying the public debt.

However, this comes at the time when the World Bank and Civil Society are warning government to check its borrowing and instead focus on widening the local tax base. Tax Amendment Bill……..

The sectors of Energy & Mineral Development, Education and Health also have their allocations in trillions of shillings, underlying their importance to the population. The Energy sector has been allocated Shs2.529 trillion, which is a 1 per cent increase from that of the current budget.

CLICK HERE FOR FULL BUDGET SPEECH
Budget Speech Report 2018 mail (1)

The education and health sectors are to take home Shs2.419 trillion and Shs1.636 trillion respectively, even though both sectors have had their allocations cut, when compared to the current financial year. However, most of the allocations here are going to payment of salaries as opposed to capital development.

Also, compared to the current financial year, the sectors of public sector management, security and Justice Law and Order much as they are to take above a trillion shillings each, they have had their allocations for the upcoming financial year cut. They are to get about Shs1.449 trillion, Shs1.357 trillion and Shs1.104 trillion respectively.

The percentage change for public sector management remains 6 per cent of the total budget while that of the latter two drop by 0.5 per cent and 0.1 respectively.
The Accountability, Agriculture, Water & Environment, Public Administration, Legislature and Social Development sector are poised to receive Shs866.6 billion, Shs831.7 billion, Shs713.7 billion, Shs566.2 billion, Shs483.8 billion and 175.1 billion, respectively. Though, allocations to Agriculture and Water & Environment are to increase by Shs3.5 billion and 0.3 per cent respectively.

Meanwhile the sectors of Lands, Housing and Urban Development, Tourism, Trade and Industry and ICT& National Guidance are to have a slight increase in their resource allocations of Shs147.7 billion, Shs119.4 billion and Shs109.1 billion, from the current releases of Shs139.9 billion, Shs116.6 billion and Shs104.3 billion respectively.

In the medium term, government has slightly cut domestic refinancing and external debt repayments to about Shs4.987 trillion and Shs894.05 billion from Shs4.999 trillion and Shs941.58 billion respectively in the current financial year. However it has increasing money for Aid appropriation, domestic arrears to Shs872.9 billion and Shs300.86 billion, from Shs757.52 billion and Shs300.13 billion respectively.

The minister, unlike in the current financial year, has provided Shs156.08 billion for gratuity and Shs77.07 billion as a contingency fund.

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