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(L) Mariam Akiror, Advocacy and Communications Coordinator at Action Against Hunger, (R) Rubangakene Patrick, Budget Policy Analyst at Civil Society Budget Advocacy Group (CSBAG) during a Press Conference at Eureka Place, Ntinda, Kampala-Uganda yesterday/Courtesy Photo.
By Julius Mugaga/ KMA Updates.
Kampala, Uganda: Civil Society Organizations cling to policy makers to take their Perspectives regarding the FY 2022/2023 National Budget Framework Paper if it is to gear economic growth.
With powers generated from Section 9 (3) of the Public Finance Management Act, 2015 as amended, Ministry of finance tabled the National Budget Framework Paper to parliament for scrutiny.
During the joint Civil Society Organizations engagement hosted by Civil Society Budget Advocacy Group (CSBAG) geared at giving their perspective regarding the Paper, different issues were raised to influence policy makers proper allocate resources.
As extracted from the Framework paper, Uganda’s economy projections show growth of about 6% in FY 2022/2023.
The economy is expected to grow at 3.8 % in the FY 2021/2022 and is projected to grow at about 6% in the FY 2022/2023.
According to the framework paper, Uganda’s economic growth is expected to be generated by the private sector activities due to increased aggregate demand post Covid-19; increased returns from public infrastructure investments and increased activities in the oil and gas sector.
Relatedly, annual headline inflation in FY 2021/2022 is projected to slightly increase to 2.7% mainly due to the impact of measures introduced to mitigate the spread of the corona-virus pandemic on process of goods and services.
The total resource envelope for FY 2022/2023 is projected to decrease by UGX 1,695.60 billion that means from UGX 44,778.80 billion in FY 2021/2022 to UGX 43,083.20 billion.
In so doing 59.22% of the budget will be funded through domestic revenue while 40.7% will be from other sources.
Public debt is projected to increase to over 52.7% of the GDP by the end of FY 2022/2023. This puts pressure on the country’s revenue obligations as interest payments are projected to amount to UGX 5,088 billion (11.8%) of the total budget in FY 2022/2023.
The Paper further projects that 73% of FY 2022/2023 is directed towards consumption expenditure and only 27% is for development.
The above are the major projections but the paper tackles all sector.
Generalizing the entire framework, Civil Society Organizations called on government to;
Slow down the pace at which it contracts commercial external financing and domestic debt and contract concessional loans.
Expedite the rationalization process by providing a clear roadmap for the process to eliminate redundancies and improve efficiency.
Expedite the implementation of program-based approach being the third year of NDPIII through National Planning Authority and Ministry of Finance.
Promote equity, government needs to come out with a clear allocation for funds under PDM bearing in mind the different demographic dynamics.
Create a position of District Food and Nutrition Officer as part of the Local government structure by Ministry of Public Service together with Health Service Commission to curb nutrition related problems.
Expedite assentment to the Local Content Bill to support implementation of the Buy Uganda Build Uganda (BUBU) policy by the President of Uganda.
Prioritize funding to Ministry of Health, Uganda Blood bank and Transfusion Services to increase blood accessibility, safety and availability by recruiting and deploying Health workers key in blood collection and transfusion for improved health systems and service delivery.
Fast track the enactment of the National Health Insurance Scheme Bill into Law.
Prioritize funding to SMEs through provision of low cost capital and adequately capitalizing Uganda Micro Finance Support Centre.
Reconsider revising of the capitation grant to factor in the Budget provisions to address COVID-19 related expenditures through Ministry of Education and sports.
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CSOs: Civil Society Organizations.
CSBAG: Civil Society Budget Advocacy Group.
FY: Financial Year.
SMEs: Small and Medium-term Enterprises.
BUBU: Buy Uganda Build Uganda.