Although the 2020/2021 budget’s theme is ‘Stimulating the Economy to safeguard Livelihood, Jobs, Businesses and Industry recovery’, the ministries responsible to make the theme come true have suffered budget cuts.
While reading the 2020/2021 budget, at Parliament on Thursday, the minister of Finance, Planning and Economic Development Matia Kasaija revealed that budget allocations for some ministries have been cut due to limited revenue collected following the outbreak of Covid-19.
Such ministries include the Ministry of Energy, Oil and Mineral Development whose budget has been cut from Shs 3trillion to Shs 2.6 trillion and Ministry of Trade Industry and Cooperatives’ budget from Shs2.2trillion to Shs1.7trillion.
Kasaija revealed that 51.8 per cent of the Shs 45.5 trillion 2020/2021 budget will be supported by loans and donations while 48.2 per cent will come from tax revenue collected by Uganda Revenue Authorities.
He said that the 2020/2021 budget has increased by 12.5 per cent greater than the previous 2019/2020 budget which was Shs 40.5trillion.
“In this financial year 2020/2021 our target is to collect over Shs 21.7trillion from the taxes, ” he said.
2020/2021 Budget: Minister Kasaija promises tax waivers to businesses affected by Covid-19
He also promised tax reliefs will be given to struggling businesses that have been affected by the Covid-19 pandemic as a way of supporting and reviving them.
Budget allocations in Ministries
The ministry of Works and Transport has been allocated Shs 5.8trillion, Ministry of Defence and Security has been increased from Shs 3.6trillion to Shs 4.5trillion.
The ministry of Education and Sports has been increased from Shs 3.3 trillion to Shs 3.6trillion, Ministry of health has been given Shs 2.7trillion from Shs 2.3trillion. Ministry of local government has been allocated Shs 1.3trillion, Ministry of Water and Environment has been increased from Shs1.1trillon to Shs1.7 trillion.
The ministry of Agriculture, Animal Industry and Fisheries has been increased also from Shs1 trillion to Shs1.3trillion.
Meanwhile, in the Financial Year 2020/2021, government is to spend over Shs4.1trillion on payments of interests on the loans both domestic and foreign. Unlike in the previous Financial Year where only Shs3.1trillion was allocated.
However, according to the budget analysis statement by Operation Wealth Creation headed by General Salim Saleh, over Shs 5trillion was cut from the different items in the 2020/2021 budget urging that they may not facilitate any profits to the country especially in the time when the Covid-19 pandemic is affecting the economy.
According to the document seen by this website, money which was given to contractors or tenderers in the government has been reduced by 45 per cent. Money for Training or workshops in ministries has also been cut by 100 per cent, money for hiring conference halls like in hotels has also been reduced by 80 per cent.
Photocopying, printing and supplying of newspapers in ministries has also been cut by 80 per cent. The budget for buying computers in the ministries has also been cut by 100 Per cent. Budget on parties and leisure in the ministries has been cut by 100 per cent.
Budget for Transport, accommodation allowances for officials travelling within the country has been cut to 50 per cent in all ministries. Whereas budget for officials travelling outside Uganda has been cut by 80 per cent in all ministries.
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