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Parliament Approves FY 2016/2017 Budget Frame Work Paper :: Uganda Radionetwork
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Parliament Approves FY 2016/2017 Budget Frame Work Paper

Cecilia Ogwal, the Opposition Chief Whip said the 3.7 percent allocation to the agriculture sector from 2.6 percent this financial year isnt sufficient.

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Parliament has approved the 20 trillion Shillings 2016/2017 financial year Budget Frame work paper. The paper was approved on Wednesday evening following debate on a report tabled by Amos Lugoloobi, the Budget Committee Chairperson showing that the Budget Frame work paper was consistent with the National Development Plan (NDP II). 

 

 

He noted that the Budget Frame work paper prioritises the increase of stock and quality of strategic public infrastructure. The Budget Frame work paper project the growth of the budget to 9.54 percent in the 2016/17 financial year. The budget committee notes that public expenditure will remain at 21.5 percent of the Gross Domestic Expenditure- GDP. 

 

 

According to the Budget Frame work, the Works and Transport will receive the biggest allocation with Shillings 3.8 trillion in the 2016/2017 financial year, up from Shillings 3.3 trillion this financial year, followed by the Energy and Mineral Development sector with 2.3 trillion Shillings.

 

 

Despite a slight increase in the Agriculture sector budget, MPs tasked government to increase the funding to 10 percent of the total budget in line with the Maputo protocol. Cecilia Ogwal, the Opposition Chief Whip said the 3.7 percent allocation to the Agriculture sector from 2.6 percent this financial year isn't sufficient.

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However, Finance Minister, Matia Kasaija said there is need to prioritise funding as opposed to concentrating on a single sector.

 

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The MPs also recommended that government revives the co-operative movement and cooperative bank as an integrated institutional framework to support the Agriculture sector with affordable financing to motivate production.

 

 

However, in its report, the budget committee observes that the Budget Frame work paper falls short of meeting all the requirements as provided for in section 9(4) of the Public Finance Management Amendment Act 2015.

 

 

It requires that the national Budget Frame work indicates the actual estimates and projections covering the previous two financial years, the current financial year, and the next five financial years. MPs noted that the 2016/2017 Budget Frame work paper doesn\'t indicate projections for money supply, unemployment, exchange and interest rates.

 

The MPs further noted that only 30 percent of the total expenditure and net lending is expected to be financed by external loans and grants in the financial year 2016/17, compared to 45-50 percent a decade ago.

 

According to the draft budget, domestic financing will grow at 5.4 percent in the medium term, mainly from commercial banks together with the non-banking institutions.

 

 

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