According to the planned expenditure, 82% of the budget will be managed by the central government, while local governments get 16%, which the experts say is too little to enable local governments operate effectively.
Under the budget, 7.7 trillion Shillings has been earmarked for Human Capital Development; 6.9 trillion for peace, security and good governance interventions; 5.1 trillion for development of integrated transport infrastructure.
Parliament Budget Committee has faulted officials from the Ministry of Finance of undermining the Public Finance Management Act (PFMA) provisions while coming up with an additional budget totaling 3.4 trillion Shillings for the coming financial year 2021/2022.
State Minister of Finance David Bahati says that the move is intended to streamline the transport sector by getting rid of illegitimate cars and raising money for the maintenance of roads across the country. According to the breakdown, Car owners will pay 200,000 Shillings while motorcycle owners will pay 50,000 Shillings annually.
Abdul Kalemera the Chairperson for District Finance Committee explains that the newly elected councillors will earn less allowances compared the outgoing over projected decline in revenue collections following creation of five town councils which are semi-autonomous and don’t remit anything to district.
The disagreement stemmed from the contention on whether a sum of 900 million Shillings from the budget, should be allocated to the purchase of a grader or the completion unfinished road works in the Municipality.
This follows an observation of inconsistencies in the figures that were approved by Parliament and those presented by the Minister in the Budget speech, brought to the attention of Parliament, by Budget Committee Chairperson Amos Lugoloobi.
Parliament's Budget Committee has recommended that the government reviews the National Budget for the coming financial year 2020/2021 after the full effect of the Coronavirus pandemic on the economy are ascertained.