Uganda’s 1.1 Trillion Shilling Supplementary Budget Raises Concerns

Saturday, April 27, 2024
The Permanent Secretary and Secretary to Treasury- Ministry of Finance, Ramathan Ggoobi. PHOTO/FILE
Busiinge Aggrey
2 Min Read

Summary:

  • The Ugandan government’s request for a 1.1 trillion shillings supplementary budget has sparked controversy among MPs over timing and spending priorities, with scrutiny on allocations including a large sum for the State House and contentious projects like a pharmaceutical bailout.

The Ugandan government’s recent plea for an additional 1.1 trillion shillings (around $318 million) in the supplementary budget has ignited a heated debate among Members of Parliament (MPs) regarding both its timing and where the funds are allocated. With just one month left in the current fiscal year, there’s intense scrutiny over the validity of these sudden spending requests.

Here’s a rundown of the proposed budget:

The lion’s share of the supplementary budget is earmarked for the State House, with a secretive recurrent expenditure totaling 18.6 billion shillings. Other notable allocations include:

  • Office of the Prime Minister (External Financing for Development Response of Displaced Persons): 9.7 billion shillings
  • Ministry of Finance, Planning, and Economic Development: 37.3 billion shillings
  • Ministry of Agriculture: 9 billion shillings
  • Regional referral hospitals (Hoima, Jinja): a combined 115 billion shillings

However, certain allocations have attracted criticism:

  • DEI Pharmaceuticals bailout: 57.8 billion shillings
  • Compensation of ranchers (Ministry of Lands and Housing): 6.6 billion shillings
  • Uganda Martyrs Day celebration: 3 billion shillings

Opposition MPs like Shadow Finance Minister Ibrahim Ssemujju Nganda argue that the government seems to favor projects with questionable returns on investment. He accuses them of “sneaking” previously rejected projects into supplementary budgets and suggests that political pressures might sway parliamentary approvals.

Key Questions:

  • Are these expenses genuinely “unexpected emergencies” warranting a last-minute supplementary request?
  • Could these funds have been managed more effectively within existing budgets?
  • Do these allocations reflect wise financial priorities for the nation?

The Debate:

The approval of this supplementary budget is expected to be contentious in Parliament. The government will need to justify both the timing and the purpose of these extra expenses to allay concerns about potential mismanagement and wasteful spending.

Document WhatsApp Follow Button

Share This Article
Examiner. Unfolding The Truth
We come to you. Want to send us a story or have an opinion to share? Send an email to editorial@examiner.co.ug
I've got feedback!
Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *