Ministry of Finance Seeks 3.4 Trillion in Supplementary Budget

The Ministry of Finance, Planning and Economic Development has tabled a supplementary request to Parliament of up to 3.4 trillion shillings which is about 7.5% of the total budget of this financial year.   

Although the total budget for Financial Year 2020/2021 is 45.49 trillion shillings, the Government now seeks and additional 3.426 trillion shillings just into the second quarter.

Of the supplementary request, 1.363 trillion has already been spent within the 3% legal limit, while they now seek approval to spend an extra, extra 2.063 trillion shillings.   According to the Finance Minister in Charge of Planning David Bahati, they are requesting for the supplementary following several critical areas not covered in the budget and an increase in the pressure due to COVID-19.   

According to the breakdown of the funds, classified expenditure takes a huge chunk of the funds, with most of it going to the Ministry of Defense and State House.

1.1 trillion shillings is supplementary to the Ministry of Defense and Veterans Affairs for classified expenditure which will be funded through borrowing.    

State House meanwhile seeks 450 Billion shillings for classified expenditure. Ministry of Finance seeks 615 billion for Uganda Development Bank to support sectors affected by COVID-19 , for Microfinance Support Centre and support towards Emyooga project. Finance also seeks an additional 50 billion shillings for Emyooga project for Kampala and Wakiso and 45 Billion for the payment of outstanding loan obligation by Uganda Telecom to the Trade and Development Bank.    

Ministry of Health has asked for 189 Billion for capacity building for National Medical stores (NMS) in systems of prevention, early detection and prevention of COVID-19 and 50 billion for additional COVID-19 support.  

100 billion is needed for Ministry of Trade through Uganda Development Corporation to support businesses affected by COVID-19; 60 billion for the payment to SICPA Uganda limited for Digital stamps solution implementation for Uganda Revenue Authority.          Also needed 223 Billion shillings for recurrent domestic arrears for rent, land, cooperatives, payment to coffee and tea seedlings suppliers and other votes under the central Government.   

Another 220 Billion shillings is needed for the bilateral road infrastructure project between Uganda and the Democratic Republic of Congo (DRC). Uganda will construct and maintain 223 kilometres inside DRC while 20 billion shillings is for counterpart funding for the Standard Metre Gauge Railway.   

National Agricultural Advisory Services (NAADS) will get 100 billion shillings for proposed interventions, Uganda Police 30 billion for persistent shortfalls in fuels and meals, Electoral commission 50 Billion for voter verification systems. 

An additional, 30 billion shillings is for compensation of war claimants for the loss of their cattle in Acholi, Lango and Teso.   Others include; 10 billion to local Governments for seed schools and upgrade for Health centres II and III, 5 Billion for Foreign Affairs for Deployment and operation in embassies abroad, among others.   Just in June Parliament passed over a trillion shillings for stimulating the economy in the midst of COVID-19. 

The proposal is currently before the committee on Budget chaired by Amos Lugolobi.