The government of Uganda has made a significant reduction in the budget funds meant for the Ministry of Lands, Housing and Urban development to UGX.104 billion.
In this Financial Year, government apportioned UGX. 268 billion to the Lands Ministry.
The Lands Ministry is one of those affected in the latest budget cuts as the state moves to maintain low public expenditure as a way of building a resilient economy that can leapfrog existing shocks like inflation perpetuated by Covid-19 and Russia-Ukraine war.
According to the State Minister for Planning, Hon. Amos Lugolobi, persistent economic shocks exacerbated by new challenges such as heightened inflationary pressures, high cost of living characterized by rapid spike in prices of essential commodities and climate change threats informed the budget cuts.
The deductions is a pragmatic move in a way commensurate with the UGX. 49.9 billion 2023/2024 national budget that is in the offing.
According to National Development Plan (NDPIII), government had estimated to apportion a total of UGX. 522 billion to the Lands Ministry in the new budget, but this has been slashed to UGX. 104 billion according to the National Budget Framework paper presented to Parliament on December 23rd by the Finance Minister Hon. Matia Kasaijja.
This kind of development puts to a stalemate different departmental undertakings and plans that are grounded under the Lands Ministry, which have unfortunately not been apportioned any coin.
These undertakings include compensation arrangements to Project Affected Persons (PAPs) who lost parts of their land to government projects. The scheme was projected to consume UGX. 372 billions, all of which has been dropped in the new budget.
Besides, the National Housing and Construction Corporation Limited was also not apportioned any amount of money according to the new budget, yet it needed more than UGX. 80 billion for the progression of its operations.
Also left out is the drainage master plan for new 16 cities in Uganda, which among others include Gulu, Masaka, Mbale.
It should be noted that a total of UGX. 15 billion was needed for this grand project to take center stage, but on a sad note, no money will be disbursed to this cause according to the new budget.
In the new budget, sectors like fishing, agriculture, transport and irrigation, among others were given priority in a carefully conceived strategy upon which government intends to leverage to build adaptation and resiliece.
The 2023/24 expenditure will be streamlined in a way that is commensurate with the National Development Plan (NDPIII), which seeks to speed up and sustain inclusive economic growth, while maintaining macroeconomic stability and debt sustainability.
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