Parliament has received the proposed National Budget for financial year 2024/25 with expenditures estimated to be UGX 58.34 trillion with this figure showing a significant increase of UGX 5.62 trillion from what was approved in the Budget Framework Paper (BFP) at the end of January.
With Parliament fond of passing supplementary budget requests from the government, there could be chances of this Budget rising up to UGX 60 trillion by June 2025.
The National Budget was tabled by Finance State Minister (General Duties), Henry Musasizi who told Parliament that the theme remains; “full monetisation of the Ugandan economy through agriculture, industrialisation, expanding and broadening services, digital transformation and market access”. This is the same theme for the current financial year.
Details of the Budget have not yet been made public as it was sent to the Committee on Budget for processing alongside the reports from Sectoral Committees which have been scrutinising the Ministerial Policy Statements. These Committees begin reporting to Parliament on 2nd April despite the alternative policy statements being tabled by the opposition on 28th April.
There are fears that the alternative policy statements may not affect the processing of the Budget with Leader of Opposition in Parliament, Joel Ssenyonyi questioning why some of the Committee reports are being signed before integrating the Shadow Ministerial policy statements.
“Rule 149 (of Rules of Procedure for 11th Parliament) as you (Speaker) did allude to provides for the deadlines the Committees can process the ministerial policy statements, that is 20th April. Today, Rt. Hon. Speaker, you have called us to lay the alternative ministerial policy statements for which we are ready to do but we understand some Committees are already signing reports. The challenge with that is that the alternative is not being captured because if you are already signing reports, what is the essence of the alternative policy statements?” asked Ssenyonyi.
He insisted that the reason why alternative ministerial policy statements are provided for in the law is to add value to the Ministerial Policy Statements being processed by the Committee which must report about them to the House at once.
Speaker Anita Among, said that indeed there are Sectoral Committees whose reports on the Ministerial Policy Statements were ready and they will be received without the alternative statements being considered. She said that however, that would not stop the opposition from laying the alternative policy statements.
“To the best of my knowledge, the Minister of Finance laid all the ministerial policy statements here and then when you look at Rule 147 the alternative policy statements, the shadow minister may submit alternative policy statements to Parliament by 29th day of March of every year and you are ready to submit them. And the essence of us sending these documents to the committee is for them to do scrutiny. When they scrutinize and harmonise, they will be able to interact with those institutions, where there is need for correction, they will do it there. I have realised some Committees are ready and that is why on Tuesday (2nd April) we shall start receiving them and then we will send them to the Budget Committee for harmonization,” said the Speaker.
Budget priorities
The Minister of State for Finance (General Duties), Hon. Henry Musasizi, who presented the budget, told Parliament that the key priorities of the National Budget for 2024/25 include; Peace and Security, Road Maintenance and Construction of a few strategic roads; and Wealth Creation Initiatives; among others.
“The key priority areas include peace and security, road maintenance and construction of a few strategic roads and construction of the standard gauge railway, electricity transmission and utilisation of existing energy stock,” said Musasizi.
The Speaker assured the government that Parliament will do its work to process the Budget and supply it by15th of May ahead of its reading by the Minister of Finance at the beginning of June.
“As Parliament we are committed to what we are supposed to do. We will do our best for the good of this country”, said Among.
Where money will go
By the time Parliament passed the BFP at the end of January, the resource envelope included; UGX 29.957 trillion of projected local revenue; UGX 28.94 billion of budget support; UGX 4.116 trillion of domestic borrowing; UGX 8.876 trillion of external borrowing; UGX 9.455 trillion of domestic refinancing and, UGX 287.1 billion of local revenue for local governments.
Key figures in the income and expenditure sides of the Budget are expected to change when the Budget Committee tables its report because of the UGX 5.62 trillion increase from what was approved in the BFP.
At the time of approving the BFP, there were indications that the Budget for 2024/25 would be UGX 14.1 billion less than the one for the current financial year.
In the BFP, Development Plans Implementation programs which include debt payment had been allocated UGX18.863 trillion; Human Capital Development, UGX 9.589 trillion; Integrated Transport Infrastructure and Services, UGX 4.491 trillion; Governance and Security, 7.675 trillion; Private Sector Development, UGX 1.911 trillion; Agro-Industrialisation, UGX 1.813 trillion; Sustainable Energy Development, UGX 1.342 trillion; Regional Development, UGX 1.047 trillion and, Legislation, Oversight and Representation (Parliamentary Commission), UGX 945.76 billion.
Other program allocations are; Sustainable Urbanisation and Housing, UGX 524.46 billion; Sustainable Petroleum Development, UGX 447.03 billion; Administration of Justice; UGX 432.44 billion; Natural Resources, Climate Change, Land and Water Management, UGX 426.65 billion; Innovation, Technology Development and Transfer, UGX 256.66 billion; Tourism Development, UGX 248.70 billion; Public Sector Transformation, UGX 228.53 billion; Manufacturing, UGX 218.81 billion; Digital Transformation, UGX 191.83 billion; Mineral Development, UGX 47.33 billion and, Community Mobilisation and Mindset Change, UGX 35.08 billion.
House Budget Cut
In recent weeks, Parliament has been in the dark following a social media exhibition especially on X, showcasing what Ugandans have termed as lavish expenditures. The Speaker Among who has been defended by President Yoweri Museveni had been in the spotlight for allegedly spending much on foreign travels that never were and also receiving through staff of Parliament huge amounts of money for purposes the public could not rhyme with.
The same public exhibition unearthed one of the secrets of the Parliamentary Commission where former Leader of the Opposition in Parliament, Mathias Mpuuga was allocated UGX 500 million as ‘service award’ with three backbencher Commissioners pocketing UGX 400 million each for the same purpose. Mpuuga has since faced the music from his party, the National Unity Platform (NUP) which has now suspended him as Deputy President for Central Region after refusing to heed the calls to resign as Commissioner of Parliament.
However, amidst this storm, Parliament has raised a red flag on the move by the Ministry of Finance to slash its budget for the coming financial year by half. In the BFP, Parliament had been allocated UGX 945.76 billion and as proposed by the Ministry of Finance this would come down to UGX 472.88 billion.
Bukanga North MP, Nathan Byanyima was up in arms accusing Permanent Secretary in the Ministry of Finance and Secretary to the Treasury (PS/ST), Ramathan Ggoobi of trying to usurp powers of appropriation which by law is a preserve of the Parliament.
“I have seen a paper that the Parliamentary budget will be cut by 50 percent. Where does such a person (Ggoobi) get powers? There is a rule that we must respect each other, treat other people the way you want to be treated. We have been demeaned to nothing,” said Byanyima.
This revelation evoked emotions as lawmakers demanded for an apology from the PS/ST because he had while appearing before the Public Accounts Committee –Central Governments recently suggested that Parliament does not have power to move money from one vote to another during the budgeting process.
“Our deduction of 50 percent, shall we be paid salary? You even have the courtesy to put it in bold, on a statutory vote that Parliament shouldn’t get money,” Among asked.
In response, Minister Musasizi apologised on behalf of the PS/ST amidst calls by legislators to have Ggoobi summoned to the House to make an apology himself.
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