Govt Set to Amend National Budget in Wake of World Bank Funding Withdrawal

Kampala, Uganda |  The Black Examiner  – The Minister of State for Finance, Henry Musasizi has revealed to Parliament that the government is planning a comprehensive overhaul of the national budget.

This strategic decision, as conveyed by Musasizi, has been prompted by the recent suspension of financial support from the World Bank to Uganda. This suspension arises from the enactment of the Anti-Homosexuality Act, a recent legislative measure passed by the Ugandan authorities.

The primary objective behind the budget revision is to offset the imminent repercussions for public servants.

Addressing this matter, Musasizi stated, “We have made a resolute determination and reached a mutual consensus that we shall face the ramifications head-on. We want to forewarn you that a budgetary revision, notably in a downward direction, is on the horizon. We shall imminently be seeking your endorsement, as we anticipate substantial effects on even remunerations due to the initial indicators. Approximately within the next week, we shall lay out the consequences and solicit your authorization regarding the optimal course of action in the face of the existing challenges.”

Subsequent to a formal press statement issued by the World Bank, confirming the suspension of its financial backing to Uganda due to the perceived incongruity with its own values stemming from the Anti-Homosexuality Act, various reactions have surfaced. Among these, President [President’s Name] has expressed the belief that Uganda possesses the capability to establish its self-reliant economic mechanisms.

Amos Kakunda, the Chairperson of the Finance Committee, divulged in the parliamentary session that while the withdrawal of World Bank support would indeed yield ramifications, the lawmakers stand firmly by their decision to enact the Anti-Homosexuality Act of 2023.

Kakunda outlined the committee’s commitment to guide the nation in navigating the challenges of financial restraint arising from the World Bank’s funding suspension.

Uganda’s fiscal budget for the year 2023/2024 amounts to 52 trillion shillings. Over time, the World Bank has played a pivotal role in bolstering the country’s financial framework, contributing substantial grants and loans, totaling trillions of shillings. It is noteworthy that Uganda predominantly operates within a budgetary deficit framework.

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