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Breakdown of Shs 72 trillion 2024/25 budget

This story was first published by The Observer on May 20, 2024, following Parliament’s annual approval of the budget on May 18 for the financial year 2023/24.

Coincidentally, this budget presentation to Parliament highlighted the actual state of Uganda’s economy. As we approach the June 13, 2024, budget presentation, we revisit this story to offer additional information, context, and background to the upcoming budget speech.

In May, Parliament approved the budget for the financial year 2024-2025, sanctioning a total expenditure of Shs 72.136 trillion. This figure exceeds the initial budget proposal of Shs 58 trillion by Shs 14.050 trillion.

The government is projected to generate Shs 32.3 trillion through revenue collection to fund this budget. Additionally, the government plans to borrow Shs 1.3 trillion from external sources and Shs 8.9 trillion from internal borrowers. The budget also includes Shs 19.8 trillion for domestic debt refinancing (rollover) and Shs 9.5 trillion for project support through grants and loans.

The budget estimates allocate the largest portions to external debt repayments, which will require Shs 3.149 trillion, and project support through loans and grants, which will receive Shs 9.583 trillion. Domestic refinancing is allocated Shs 12 trillion, while interest payments amount to Shs 90.94 trillion. Other significant allocations include Shs 603 billion for Bank of Uganda recapitalization, Shs 200 billion for domestic arrears, and Shs 9.1 trillion for domestic debt payments to the Bank of Uganda.

According to the committee on Budget report, on allocation per programme, human capital development took the lion’s share of Shs 9.9 trillion, followed by governance and security at Shs 9.1 trillion; agro-industrialization Shs 1.6 trillion; transport infrastructure and Services Shs 5.1 trillion; Energy development Shs 1 trillion; private sector Development Shs 2 trillion; and legislation, oversight, and representation at Shs 978 billion.

Development Plan Implementation was allocated Shs 2.3 trillion; regional development Shs 1.5 trillion; mineral development Shs 41.6 billion; sustainable development of petroleum resources Shs 920 billion; tourism development Shs 404 billion; climate change, natural resources, environment, and water management Shs 642 billion.

Conversely, Shs 200 billion was allocated to Public Sector Transformation; Development Plan Implementation Shs 2.3 trillion; manufacturing Shs 207 billion; Digital Transformation Shs 230 billion; Sustainable Urbanisation and Housing Shs 237 billion; Innovation, Technology Development and Transfer Shs 346 billion; Community Mobilisation and Mindset Change Shs 70 billion and Shs481 billion to the Administration of Justice.

The report indicated that the government will continue to implement 2024/25, its fiscal consolidation strategy in the financial year 2024/25 with the goal of placing the economy on a long-term fiscal sustainability plan, including debt sustainability in line with the Charter for Fiscal Responsibility.

Opolot Patrick Isiagi, the chairperosn of the committee on Budget said it will entail enhancing domestic resource mobilisation efforts, reducing wasteful expenditures by repurposing large public administration budgets, improving efficiency across the government, strengthening e-government processes, improving efficiency in the execution of projects, and public investments, among others.

Boosting household income

In a bid to boost household income through the development of microenterprises, parliament allocated Shs1.077 trillion to the Parish Development Model; Emgooga SACCOs Shs I00 billion, of which Shs 20 billion are for teachers SACCOs; Microfinance Support Centre Limited Shs 50.07 billion, of which Shs 30 billion is purposed for onward lending; Shs 13.056 billion has been allocated to the Uganda Women Entrepreneurship Programme (UWEP) as a revolving fund; and in addition, Shs 342.23 billion has been earmarked for enhancing growth and productivity opportunities for women enterprises (GROW).

Parliament also appropriated Shs 3 billion to Jua-kali Enterprises to transition into the formal economy, Shs 5 billion for Enterprise Funds for Older Persons, Shs 121.218 billion towards Social Assistance Grants for Empowerment (SAGE) and Shs 13.2 billion for Special Grants for Persons with Disability, and Shs 8.7 billion towards the Youth Livelihood Programme (YLP).

Industrialization and private sector development

Shs 174.99 billion  was  allocated for SMEs in the manufacturing and export sectors through the Investment for Industrial Transformation and Employment (INVITE) program; Shs 155.6 billion for infrastructure development of industrial parks; Shs 50 billion for capitalization of the Agriculture Credit facility to support farmers, but mainly agro-processors that focus on value addition;

At least Shs 85.92 billion has been appropriated for the capitalization of the Uganda Development Bank. This will support the entire agriculture ecosystem, the private sector players to increase the stock and quality of tourism facilities, and the financing of the local production of essential goods as a precursor to achieving import substitution, among others.

Shs 151.27 billion was allocated towards the Resource Enhancement and Accountability Programme (REAP), to increase resource mobilization, improve planning and public investment management, and strengthen accountability for quality, effective, and efficient service delivery.

Commercialising agriculture

Breeding, production, multiplication, and availing of animal seed and poultry to farmers countrywide (NAGRC&DB) Shs 24.43 billion; animal feed production on government ranches and farms: Shs 13.1 billion; innovations for management and control of livestock diseases, vectors, and parasites Shs 60 billion; research products and services suited for food, feed, market, and industry Shs 24.1 billion; and developing the requisite research infrastructure to support the development of products for food, nutrition, and industry to accelerate the Agricultural Transformation Agenda Shs 11.39 billion.

Parliament put aside Shs 24.88 billion to support the production, marketing, and extension of oil palm in Buvuma, Mayuge, and Kalangala districts under the Ministry of Agriculture; Shs 72.6 billion to support oilseed research, multiplication, and agronomy in the oilseed growing districts; Shs 30 billion to support the certification and production of seeds, breeds and fingerlings to ensure seed quality, including the provision of machinery, laboratories, and irrigation equipment for seed testing and evaluation; and Shs 14.1 to establish and/or upgrade seed storage, threshing, and drying facilities to ensure sustainable supply of quality seed.

Shs 18.52 billion to purchase assorted animal vaccines, tick acaricides, vaccine cold chain equipment, and assorted laboratory reagents, consumables, and supplies for control of animal diseases; Shs 32.4 billion to construct disease diagnostic and analytical infrastructure for quality assurance; Shs 21 billion to revamp the National Animal Quarantine and Evaluation Centre in Entebbe to promote exports and safe guard the national herd in case of animal imports; and Shs 70 billion to construct and equip zonal agricultural mechanisation centres.

Shs 23 billion has been allocated to the procurement of tractors, matching implements, walking tractors, and assorted equipment and machinery units; Shs 97.5 billion for the provision of bulk water supply to support irrigation, water for livestock, and aquaculture; Shs 56 billion for the construction of the Acomai irrigation scheme; Shs 30.4 billion for the construction of Atari irrigation to support rice production; and Shs 134 billion for the construction and improvement of zonal aquaculture indoor hatchery and cage culture facilities for massive fingerling production.

Transport Infrastructure Development

Shs 2.221 trillion to start construction of standard gauge railway (SGR) and continue implementing preparatory activities for SGR; Shs 3 billion for maintenance of 13 aerodromes in Arua, Gulu, Paluba, Mansidi, Lira, Kidepo, Moroto, Soroti, Tororo, Jinja, Mbarara, Kasese and Kisoro.

Construction and upgrade of national roads and bridges Shs 1.27 trillion; Shs 142.3 Billion for the rehabilitation of district, urban, and community access roads; and Shs 1 billion to each district, City and municipality for road grading, murram, and compacting. In total, Shs 176 billion has been allocated for this purpose.

Equally, Shs 11.8 billion has been allocated for the development and construction of ferries and Shs 592 billion to address flooding, traffic congestion, poor road infrastructure, un-signalised junctions, the provision of street lighting, and stormwater drainage enhancements in Kampala.

Tourism Development

Shs 11.29 billion for the Mt. Rwenzori Tourism Infrastructure, including improving the existing trails and establishing shorter ones; and Shs 8.24 billion for the development of museums and heritage sites for cultural tourism. Shs 12.77 billion for the development of Nile tourism. Infrastructure that includes the construction of modern piers, docking places for boats, and other amenities.

Health Services

Shs 702.79 billion for procurement of TB, AIDS, and malaria; Shs 349.68 billion for GAVI vaccines and health sector development; and Shs 57.8 billion for Uganda’s COVID-19 response and emergency preparedness.

The MPs rationed Shs 57.4 billion for the construction and equipping of the Uganda Heart Institute; Shs 38.56 billion for infrastructure development at the Uganda Cancer Institute; Shs 20 billion for the rehabilitation and construction of general hospitals; Shs 12.7 billion for the establishment of regional oncology and diagnostic centres in Arua, Mbale, and Mbarara; Shs 569 billion for essential medicines and health supplies for all health centres, general hospitals, regional referral hospitals, and national referral hospitals; and Shs 29.93 billion for specialised medicines, reagents, sundries, servicing, and maintenance of equipment at Mulago National Referral Hospital.

At least Shs 10 billion for the completion of the 150 staff housing units; Shs 26.35 billion for local government primary health care services.

Education

Shs 4 billion was given to  the grant aiding 38 primary schools and Shs 11.28 billion for the grant aiding 46 secondary schools; Shs 4.3 billion for the renovation and expansion of facilities in 36 secondary schools; and Shs 27.52 billion towards the Higher Education Students Financing Board for a new cohort of about 1,200 students for financial year 2O24/25 and to support about 3,500 continuing students.

More than Shs 20.9 billion towards teacher education and training, inclusive of setting up and operationalizing the Uganda National Institute for Teacher Education (UNITE) and the establishment of the National Teacher Council.

Shs 16.9 billion was allocated towards physical education and sports for support to primary, secondary, and other education institutions, and Shs 4.9 billion for the procurement of instructional materials for the lower secondary curriculum.

Shs 362 billion was geared towards the Uganda Secondary Education Expansion Project (USEEP) for the construction of 60 seed schools in sub-counties without secondary schools and the expansion of 61 existing government secondary schools with special consideration of refugee hosting districts; Shs 28.43 billion towards TVET Trainers’ Research and Innovation for Training; and Shs 48 billion for the National Council of Sports.

Digital Transformation

Shs 113.7 billion has been allocated to the Government Network (GovNet) project towards expanding the digital infrastructure outreach, strengthening digital infrastructure complements, and mainstreaming digital services in priority sectors, among others.

Energy, Oil and Gas Development

Shs 668.2 billion is towards midstream petroleum infrastructure development; Shs 530 billion is for the Electricity Access Scale-Up Project (EASP). The project is intended to increase the proportion of the population with access to electricity from 24% to 44% by 2027.

Shs 241.7 billion towards the Karuma Hydroelectricity Power Project; Shs 126 billion for enhancing power supply to industrial parks and power transmission line extensions; and Shs  93.75 billion to enhance rural electrification and connectivity across the country.

Water Supply and Sanitation

Shs 315 billion for integrated water resources management and development. The funds are intended to enhance water supply and sanitation in small towns and rural areas. Shs 161 billion for the development of solar-powered irrigation and water supply systems; Shs 113.47 billion for providing farmers with access to irrigation water, supporting farmers carrying out on-farm irrigation, accessing production and value-added knowledge and skills; and Shs 1O4 billion to enhance safe water supply in rural areas and improved sanitation facilities across the country.

Mineral Beneficiation

For Uganda to reap the benefits of its mineral resources, Uganda’s mineral deposits will be quantified to ascertain their value before beneficiation. For the development of minerals, an allocation of Shs 41.5bn has been allocated.

Comments

0 #1 kabayekka 2024-06-12 09:48
It is unfortunate that it is the civil society organizations that are coming out to criticize the Uganda National budget. For the Buganda Kingdom state it should be the Lukiiko of Buganda and the traditional government of the Kabaka of Buganda.

It seems these Ganda ancient institutions have given up any hope for the Buganda state to be kuntiko as the song of development has all along been for this young and maverick Katikkiro of the Kingdom state of Buganda! And anyway.

Where for heavens sake is the monarchy of this Ganda Kingdom state in terms of the Kingdom state's protocol? Ronald Edward Frederick Kimera Muwenda Mutebi II (born 13 April 1955) is King of the ancient African Kingdom of Buganda, and is well known to have assisted politically in establishing this long serving military government of NRM!
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0 #2 kabayekka 2024-06-12 10:02
One would hope that as June 13th approaches to present such a debt ridden national budget, the Ganda Parliamentary fraternity that represent this autonomous kingdom state would walk out of this Parliament until official information is advanced to the public in this economic suffering African state kingdom of Buganda!

It is high time the Ganda citizens of this African state learnt from the history of their country that it is only them who need to build up their God given country and not anybody else!
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+1 #3 WADADA rogers 2024-06-12 10:09
It is a pity, they allocate the largest amount of money to security and regularly return to pick what they call classified expenditure, nobody is supposed to ask questions on how this money is spent
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