As you may be aware, the Minister of Finance Matia Kasaija has read out the 2020/2021 Uganda budgetary allocations where Shs 45.5 Trillion was distributed across public sectors according to priorities of the National Resistance Movement (NRM) government of President Museveni.
The Minister raised concerns about the huge government debt, corruption among government officials and poor service delivery within the public service.
“To ensure that public debt remains sustainable, we will implement the Domestic Revenue Mobilization Strategy to increase government’s capacity to finance programs with less reliance on domestic and external borrowing.” Kasaija said.
He said that the gov’t approach to reduce domestic debt in preference to external debt is intended to lower the cost of interest payments to 2.2 percent of GDP compared to 2.6 percent of GDP, if the country were to continue borrowing significantly from domestic sources.
“The Resource Envelope of Financial year 2020/21 totals Shs. 45,493.7 Bn of which Domestic Resources amount to Shs. 25,585.6 Bn. Domestic Financing amounts to Shs 3,560.3 Bn; while External Financing consists of Project Support of Shs. 9,515.3 Bn and General Budget Support Shs. 2,906.7 Bn. Domestic re-financing amounts to Shs. 7,486.1 Bn and Appropriation in Aid is Shs. 215.6 Bn.” Kasaija said.
The Minister said that the Total Expenditure amounts to UShs. 37,792 Bn of which Recurrent Expenditure is UShs. 19,787.8 Bn and Development Expenditure is UShs. 18,004.2 Bn.
The summarised sector allocations in the budget as approved by the Parliament has been captured in the images below;
For his address, President Museveni had no kind words for the resigned URA staff who, according to him, had been trusted with serving their country and they instead robbed from it. He however claims they have been cleaned out of the gov’t body.
