Budget Places Emphasis on Parish Model, Human Capital Development & Security.
In accordance with Article 155(1) of the constitution and the Public Finance Management Act, the Minister of Finance Matia Kasaija has presented the budget speech for the financial year 2022/2023 on behalf of the President with the total Resource Envelope of Shs. 48.1tn
The Budget places emphasis on the full implementation of the Parish development model with Shs1.05tn allocated to fully operationalize the vehicle to socio-economic transformation.
Starting on the economic performance of the current financial year, Kasaija indicated significant growth of Uganda’s economy, projected to expand to Shs.162.1 Trillion for the financial year ending 30th June 2022.
The overall inflation has increased from 2.7 percent in January 2022 to 6.3 percent in May 2022 while the Shilling has significantly depreciated since March 2022 on account of concerns arising from the Ukraine-Russia conflict.
The 48.1tn budget places emphasis on the implementation of the Parish Development Model. 1.059tn has been allocated for its full implementation. Each Parish is slated to receive Shs100m as a revolving fund.
Matia Kasaija MInister of Finance.
The budget seeks to Enhance of security rule of law and corruption fight, Shs 3.987 Trillion has been provided for the improvement of security and security infrastructure. High on the agenda was the pacification of the eastern Democratic Republic of Congo and the Karamoja Subregion is infested by cattle rustlers.
In Human Capital Development, 3.72tn has been allocated to the health sector. Among priorities is to carry out mass vaccination of eligible persons and community disease surveillance by strengthening Village Health Teams (VHTs) w Additional Health Assist.
On Education emphasis has been put on improving the quality of education to enhance learning outcomes Shs 4.14 trillion has been allocated to fund activities including; filling Staffing gaps in primary and Secondary schools, Training Teachers and Instructors on the new curriculum among other priorities.
In the Sector of Transport and infrastructure, the government has allocated shs4.3trillion for the Construction of 400KM of roads, rehabilitation/reconstruction of 200Km of roads, and the construction of 30 bridges on the National roads network. 928 kilometers of District roads and 126KM of other Local Government roads will be rehabilitated. Development of the Bukasa Inland Port and the commencement of Uganda Airlines’ flights to London and China are also key Priorities.
Commercialization of Oil and Gas is also high on the agenda with 904.1bn allocated. Kasaija reiterated government is committed to extracting Oil by 2025 despite massive campaigns by environmentalists to fail the project.
The Resource Envelope for Financial Year 2022/23 amounts to Shs. 48.1tn and is comprised of both domestic and external resources. Domestic Revenue amounts to Shs. 30,79tn of which Shs.
23,75tn will be tax revenue and Shs. 1,79tn will be Non-Tax Revenue. Domestic borrowing amounts to Shs. 5,007tn, Budget Support account for Shs. 2,6tn, External financing for projects amounts to Shs. 6,77tn of which Shs. 4,62tn is from loans, and Shs. 2tn is from grants. Appropriation in Aid, collected by Local Governments amounts to Shs. 238.5 billion; and Domestic Debt Refinancing will amount to Shs 8tn.