Mukunda said that the reduction in the resource envelop from the current 72 trillion to next year’s 57 Trillion Shillings is the realistic thing to do, because there would be no resources available to finance it anyway, according to him.
The ongoing cuts in external financial support to Uganda's
budget will call for enhanced public expenditure discipline if the effects are
to be overcome, the government has been told.
The preliminary projected total budget (Resource
Envelope) for the financial year 2025/26 amounts to 72.137 Trillion Shillings,
a reduction of 14.7 Trillion from the current budget.
These budget projections were made by the
Ministry of Finance, Planning and Economic Development before the US government
announced a stoppage to its aid to developing countries Uganda, as well as
disengagement from the World Health Organisation, with it being a main
contributor.
The private sector, civil society and experts
are now worried that as the government struggles to meet its obligations, there are
social services like health, which are destined for adverse effects.
Angella Nabwowe Kasule, the Executive Director,of ISER (Initiative for Social and Economic Rights), said that the health sector
has so far been the most affected.
She added that since the announcement by US
President Donald Trump, there have already been disruptions in the health
sector including workers losing jobs, while budget allocations to hospitals have
been cut.
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She was speaking at a pre-budget dialogue in
Kampala organised by the Civil Society Budget Action Group (CSBAG).
Julius Mukunda, the Executive Director, CSBAG said
that on paper, the government plans to focus on critical areas that could help
the growth and development of the country.
However, he said, even before spending discipline,
there is already a planned resource wastage in the budget, through poor prioritisation:
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The civil society also urged the government to
strengthen Public Investment Management, address project delays and avoid risky
investments, as well as uncalled-for supplementary budgets.
Mukunda said that the reduction in the resource envelope from
the current 72 trillion to next year’s 57 Trillion Shillings is the realistic
thing to do because there would be no resources available to finance it
anyway, according to him.
He also implored the government to resolve the
issue of pension whose budget is rising very first especially because of
science professionals retiring early in droves.
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The civil society urged the citizens to be able to
raise concerns about issues that compromise the planning and budgeting process,
such as recurring supplementary funding.
Speaking on the declining external resources, David Okwii,
Senior Economist at the Ministry of Finance, Planning and Economic Development said
the main option available is to target the available resources to where they
mean more sense.
He acknowledged that the government, like many other African
countries, will face challenges even where finances are, because interest rates
are rising all over the world.
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Speaking on behalf of the private sector, Thaddeus
Musoke Naggenda, the Chairman of Kampala City Traders Association (KACITA-Uganda),
said the country is most likely not to achieve the 500-billion-dollar economy
target by 2040 because it has not engaged the private sector.
Musoke says that unless the government listens and acts on the
challenges affecting them, especially the issue of long-term financing,
businesses in Uganda will not thrive to the desired levels.
