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Archive for April, 2015

budget2015The National Budget is a key instrument through which governments implement their policies. It is an annual plan of expenditures and income. It is also a plan of what monies the government expects to receive in forms of tax revenues against how much it expects to spend in a given financial year. The National budget is usually derived from projected domestic and external revenue and these are determined by several factors such as past trends, efficiency gains, growth in volume of imports, elasticity of taxes, real growth in the real monetary GDP and prices. Normally, prioritization of sectors in the National Budget is based on interventions with direct impact on growth and poverty   reductions in a given country. s guide sector prioritization. Budget consultations start from top to bottom entailing cabinet retreats, budget call circulars and Local Government Local Government (LG) workshops.

Last week, I attended a meeting by the Civil Society Budget Advocacy Group (CSBAG), to analyze the Uganda National Budget Framework Paper (BFP) for the financial year 2015/16. The National Budget Framework Paper (BFP) outlines Government interventions for Social and Economic Development in a given financial year and provides link between Government’s overall policies and the Annual Budget. It lays out the fiscal policy framework and strategy for the budget year and in the medium term setting out how the Government intends to achieve its policy objectives over the medium term through the budget. The national BFP has three sections: Part 1 sets out the Government’s Medium Term macroeconomic forecast, Medium Term Fiscal Framework and Forecast, Charter of Fiscal Responsibility, the Resource Envelope and Annual Budget for and Fiscal Risks; Part 2 sets out Government’s Policy measures and programmes for social and economic development, as well as the indicative expenditure framework in FY 2015/16 and the medium term; and Part 3 provides details of proposed sector plans and expenditures.

My focus  in the budget paper on financing for social development. Although  the country is struggling to spend  within its means by reducing the total budget from 15829.9bn in FY 2014/15 to 14472.05bn in FY 2015/16, the cut has affected more of the social sectors such as  agriculture, education and health. Therefore the government’s proposal to reduce health budget by 317.4bn (from 1281bn to 963.7bn), Education by 45.3 bn (from 2026.6bn to 1981bn), agriculture by 56.7 (from 473.3bn to 4170bn) to mention but a few and yet Public Administration budget has increased by 155.3bn (from 554.8bn to 710.1bn), interest payment 678.4bn (from 1082.9bn to 1761.3bn) should be revised.

Reducing money of sectors that have direct impact on Uganda’s population will affect the overall welfare of the people and at the same time, increase the general economic costs  of o taking  care of sick, illiterate and hungry citizens.

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