Finance Ministry revises budget to Shs44 trillion; sets side Shs500b to buy COVID-19 vaccine

Finance Ministry revises budget to Shs44 trillion; sets side Shs500b to buy COVID-19 vaccine

By Norman Isaac Mwambazi 

Last week, the Ministry of Finance and Economic Planning presented the first draft of the national budget for the Financial Year 2021/22 and lawmakers on the Budget Committee chaired by Ntenjeru North Constituency MP Amos Lugoloobi forced Finance Minister Matia Kasaija to withdraw it. The first draft was Shs41.2 trillion.

According to the committee, the budget was not aligned with the National Development Plan (NDP)) III aspirations so Kasaija was told to draft a new budget and return to the House today, Monday, April 26, 2021.

It has come to our knowledge that Kasaija has done what he was instructed to do but the revised budget is now Shs44.7 trillion, an increase of Shs3.4 trillion.

Here are the affected sectors in the revised budget    

According to the revised Budget allocation, human capital development now takes the biggest piece of the national cake with Shs7.7 trillion followed by governance and security with Shs6.9 trillion. Before the revision, governance and security had the biggest share but this has been cut by Shs750 billion.

Integrated transport infrastructure and services has been allocated an extra Shs1 trillion to go to Shs5 trillion. This sector was initially allocated Shs3.9 trillion.

Agro-industrialisation and sustainable energy development have been given extra Shs276b and Shs250b respectively. This means that these sectors will be allocated Shs1.6 trillion and Shs1.1 trillion respectively in the revised budget.

Judiciary has been allocated Shs373 billion while Legislature (Parliament) has been allocated Shs832 billion. Regional development (Shs1.2 trillion) and development plan implementation (Shs1 trillion).

The revised budget also sees Shs500 billion added to buy COVD-19 vaccines in the next financial year which was no included in the initial draft because Covid-19 vaccine discussions were still underway.

The acting director for Budget at the Ministry of Finance, Kenneth Mugambe said the revised budget is aligned to the NDP III by 62% per cent and that although the National Planning Authority requires the budget to be aligned to NDP III at 70%, missing the target by 8% is negligible.

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