How Govt will finance Shs72T budget for FY 2024/25

by Business Times writer
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Finance Minister, Matia Kasaija on Thursday read to the country the unprecedented 72.1 trillion shillings budget for the 2024/25 financial year. This is the biggest budget in Uganda’s history.

Kasaija highlighted seven key sectors that the government has prioritized to propel the country to a desired GDP level.

They include; human capital development (investing in the people of Uganda through education, health and water, sanitation and hygiene) which has been allocated a total of Shs10.204 trillion, peace and security allocated a total of Shs9.107 trillion, including a 25% enhancement of salaries of all security personnel at the rank of Captain and below, and integrated transport infrastructure and services which includes; maintenance of all roads, construction of a few strategic roads, as well as rehabilitation of the Meter Gauge Railway and construction of the Standard Gauge Railway which has been allocated Shs4.989 trillion.

Others include; investing in wealth creation initiatives, including commercial agriculture, value addition (UDB and UDC), the Parish Development Model (PDM), Emyooga, Agriculture Credit Facility, tourism, science-based research, and youth skilling, export promotion programme, and the GROW Project which has been allocated Shs2.641 trillion; energy that covers electricity transmission, distribution and utilization of existing energy stock which has been allocated Shs982.6 billion; natural disasters (Contingency Funding) which has been allocated Shs169 billion; and Uganda’s international commitments for regional and global partnerships allocated Shs31.1 billion.

In particular, the health sector has been allocated Shs2.946 trillion, education – Shs2.497 trillion, agro industrialization – Shs1.878 trillion, Parish Development Model (PDM) – Shs1.059 trillion, energy –  Shs982.56 billion, social protection – Shs355.7 billion, climate change mitigation – Shs516.78 billion, tourism – Shs289 billion, coffee value chain development – Shs75 billion, ICT and digital transformation – Shs246 billion among others.

HOW THE BUDGET WILL BE FINANCED

Finance Minister Matia Kasaija reading the budget.

Kasaija said that Uganda Revenue Authority (URA) will be tasked to collect Shs31.982 trillion, of which Shs29.366 trillion will be tax revenue and Shs2.616 trillion will be non-tax revenue.

Through Budget Support, government is expected to mobilize Shs1.394 trillion; Domestic Borrowing – Shs8.968 trillion; Treasury bonds for settlement of Government outstanding obligations to Bank of Uganda as at 30th June 2024 – Shs7.779 trillion; Domestic Refinancing of maturing domestic debt – Shs12.022 trillion; Petroleum Fund drawdown – Shs115.4 billion; Project support (external financing) – Shs9.583 trillion; and Local Government revenue collections – Shs293.9 billion.

Out of the total budget of Shs72 trillion, the total appropriation is Shs37.56 trillion and statutory expenditure is Shs34.756 trillion.

Appropriation (Shs37.56 trillion) is the amount of money that the government has allocated for specific programs and projects. It includes funds for things like healthcare, education, infrastructure, and other public services while statutory expenditure (Shs34.756 trillion) is the amount of money that the government is required to spend by law. It includes things like paying off debts, salaries for government employees, and other mandatory payments.

“Wages and salaries are projected to amount to Shs 7.926 trillion, non-wage recurrent expenditure to Shs 17.454 trillion, development expenditure from own resources to Shs 6.152 trillion, external project financing Shs 9.584 trillion, appropriation in aid to Shs 293.9 billion, while external debt repayment will amount to Shs 3.149 trillion,” said Kasaija.

To achieve budget objectives, Kasaija said government will strengthen domestic revenue mobilisation by providing adequate funding to revenue generating entities; strengthen public finance management to ensure accountability and frugality, and avoiding misuse of public resources; repurpose the budget towards high impact economic growth areas; improve efficiency in the execution of projects and other public investments; and borrowing for only strategic high impact interventions.

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