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By Julius Mugaga/ KMA Updates.
Kampala, Uganda: Government is set to invest UGX 200bn to help revamp collapsing and struggling business as a result of prolonged Lockdown.
During the FY 2022/2023 Civil Society Organizations’ Pre-Budget Dialogue, Julius Mukunda, the Executive Director of Civil Society Budget Advocacy Group (CSBAG) pressed a need for government to increase investment directed to revamp businesses that were hit by coronavirus pandemic.
Julius Mukunda, Executive Director of Civil Society Budget Advocacy Group (CSBAG)/Courtesy Photo.
Mukunda stressed that according to the FY 2022/23 National Budget Framework Paper prepared by Ministry of Finance, only UGX 200bn is proposed for business recovery, believing that this would be doubled compared to how many business are in the country and the intensity of Coronavirus pandemic effects to them.
He adds there should a clear feasibility study to find out how many businesses and their location if the fund will surely benefit them.
Mukunda as well hinted on the new parish model program by the governing that is to take route in the forthcoming FY 2022/23 saying needs huge investment in preparing if it will be economically viable to achieve its objectives.
He notes that the model should be inclusive at the parish level by involving parish chiefs, parish development committees must be operational as well as creating community awareness on the program.
He has expressed dissatisfaction over the ever increasing number of local government administrative units without proportionate increase in the resource allocation.
He pointed that there is an increase in local government units to 10 cities, 135 districts, 41 municipalities and recruitment at parish level but local government financing has decreased from about UGX 4.5 trillion in the FY 2021/22 to UGX 4.2 trillion in FY 2022/23 which is worrisome.
In the same dialogue, Mweru Ishmael Magona, Commissioner Budget and Finance in the Ministry of Finance and Economic Development, expressed a need to recapitalize the Central Bank arguing that the economy has expanded.
Mweru Ishmael Magona, Commissioner Budget and Finance in the Ministry of Finance and Economic Development addressing Journalists at Golf Course Hotel, Kampala yesterday/Courtesy Photo.
On the ever increasing administrative units without proper facilitation, Magona noted that the government is aware and devising means of handling it but if it remains pending some will be carried on to other Financial Years.
Ask why budget are not well facilitated, Magona advised that better planning and budgeting are some of the ways that would help in facilitating successive national budgets.
It will be remembered that 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 Trillions in FY 2021/2022 to UGX 43,083.20 Trillions but the targets in the National Budget Framework Paper are overwhelming.