Stanbic Bank
Stanbic Bank
Stanbic Bank
Stanbic Bank
22.7 C
Stanbic Bank
Stanbic Bank
Stanbic Bank
Stanbic Bank

Parliament approves Shs48.1 trillion budget for 2022/23

Must read

Parliament has passed the Shs48.1 trillion budget for financial year 2022/23 with post #Covid-19 economic recovery high on the agenda.

Under the theme “Industrialization for Inclusive growth, Employment and Wealth Creation,” projected revenue base is Shs48.1 trillion to finance the budget.

On recurrent expenditure, Ministry of Finance, Planning and Economic Development takes Shs2.3 trillion, Ministry of Defense and Veteran Affairs has been allocated Shs1.2 trillion, while Lands, Housing and Urban Development will take Shs503 billion.

On development expenditure, Defence takes Shs2.3 trillion, Ministry of Health Shs1.4 trillion, while Energy gets Shs1.4 trillion.

Uganda National Roads Authority has been given Shs2.5 trillion in development expenditure, signaling the significance of infrastructure in the post-Covid-19 recovery.

The Finance State Minister, Mr. Henry Musasizi, who shepherded the Budget on behalf of President Museveni said there is need to heal the economy from the ravages of #Covid-19.

“This budget of financial year 2022/23 will mark the recovery for this economy; our economy has been affected by shocks such as the #Covid-19 pandemic, the regional geo-political conflicts, climate change…these developments affected government’s financial position through the reduction in government revenue,” said Musasizi. 

The economy, said Budget Committee Chairperson, Mr. Patrick Opolot Isiagi, has grown by 3.8 per cent in the ending financial year, as against the projected 3.3 per cent.

The difference, he said, is attributed to the vaccination efforts that led to full re-opening of the economy and a surge in demand especially in areas of construction.

MP Opolot said the committee foresees a growth of six per cent of Gross Domestic Product (GDP) in financial year 2022/23.

“In the medium term, growth is expected to pick-up, supported by gains from the containment of the pandemic through vaccination, recovery in global demand and a rebound in foreign direct investment inflows majorly stemming from the oil pipeline construction,” he said.

Unemployment, noted Opolot has shot up to 64 per cent among the youth (18-30 years), a spike he said is explained by the lockdown due to #Covid-19.

“Prior to the outbreak of #Covid-19, there were 1.72 million unemployed youth including 0.362 million graduates in the country (2020 UBOS Statistical Abstract). According to the Uganda Bureau of Statistics, the share of unemployed youth   persons in the country is about 64 per cents,” he said.

Alarm has also been sounded on the rising public debt, which increased by a whopping 15 per cent from 2020 to December 2021, to the last recorded Shs73.5 trillion.

Debt is expected to continue rising, with projections it will get to over 52 per cent of GDP.

“Public debt is on the rise and projected to reach 52.9 per cent of GDP in 2022/23 and the country’s debt sustainability metrics are characterized with slow export growth and increasing debt service,” said Opolot.

With government hopes for recovery and improvement of household income staked on the Parish Development Model, the Budget Committee was unhappy with the homogenic allocation of a flat rate of Shs100 million per parish, which they said is not alive to the dynamics of every parish in Uganda.

“Each parish has indicatively been allocated Shs100 million under the Parish Revolving Fund; this homogeneous allocation does not take into account varying socio-economic, geographical and population dynamics,” reads the Committee report in part.

On public investment, the committee recommended a withdrawal of proposed allocation of Shs319.5 billion to the stalled Lubowa Hospital, which it advised should instead be applied to address other critical needs of the sector.

Shs900 billion has been recommended for withdrawal from Treasury Operations, which the MPs said is an over-allocation which should be provided to other sectors.

Muwanga  Kivumbi opposed allocations to construct roads in the Democratic Republic of Congo, arguing that instead the money should be moved to procure road equipment for domestic use.

“Shs80 billion should be reallocated from construction of DRC roads for financing road maintenance across the country; additionally, as a best practice, all infrastructure projects should always reallocated of least 20 per cent for operations and maintenance within any given financial year,” he said.

Speaker Anita Among asked MPs to monitor the budget as passed by Parliament, looking at the output and its impact on the lives of citizens.

“What we have to do is to ensure we do oversight role; we are passing the money, we are doing our core role as Members of Parliament…what remains is oversight, you need to monitor this money, the Shs48 trillion, where it is going and how it is going to be used and the output we are to get out of this money,” she said.

- Advertisement -

More articles


Please enter your comment!
Please enter your name here

- Advertisement -

Latest article

- Advertisement -