Govt Releases Shs48 Trillion 2022/23 Budget Focussed On Economic Recovery

The Government of Uganda has earmarked a total of Shs1.711 trillion as wealth creation funds in the National Budget for 2022/2023 as part of its strategy to ensure economic recovery from the effects of Covid-19 and the current high prices.

Finance minister Matia Kasaija, while delivering the budget at Kololo Ceremonial Grounds in Kampala on Tuesday, June 14, 2022, said the overriding goal of the ruling government is to achieve socio-economic transformation for the benefit of all Ugandans and thus improve their lives.

“Madam Speaker, the theme of the Budget for Financial Year 2022/2023 is, therefore “Full Monetisation of Uganda’s Economy through Commercial Agriculture, Industrialisation, Expanding and Broadening Services, Digital Transformation and Market Access,” he said.

The minister also said the government will focus on enhanced fiscal discipline to limit supplementary expenditure to within the 3 per cent provided for under the law.

While security, education, and health have still remained some of the biggest beneficiaries, the Government has earmarked a total of Shs1.711b as wealth creation funds through various programmes.

The main vehicle for improving household incomes (wealth creation) in the 2022/2023 national budget is the Parish Development Model (PDM), which has been allocated Shs1.059 trillion.

“Madam Speaker, next financial year, I have provided a total of Shs. 1.059 trillion for full implementation of the Model. Each of the 10,594 Parishes in the country will receive Shs.100 million as a revolving fund, earmarked for purchase of agricultural inputs by households still in subsistence,” Kasaija said.

“Madam Speaker, the Parish Development Model will be complemented by other Government programmes such as the Emyooga Fund; the Microfinance Support Centre credit to other SACCOs and Village Savings Groups; the Small Business Recovery Fund; and other wealth creation initiatives,” he added.

A total of Shs 3.987 Trillion has been provided for the improvement of security and security infrastructure.

“Shs3.987 Trillion has been provided in the Financial Year 2022/23 Budget for the improvement of security and security infrastructure. This includes maintenance and installation of new CCTV cameras across the country,” Kasaija said.

The government has allocated a total of Shs3.722 trillion for healthcare delivery in Financial Year 2022/20223. This will, among others, go towards rehabilitation and expansion of the following general hospitals; Itojo, Kaabong, Abim, Kambuga, Masindi, Kanungu, Kapchorwa, Bugiri and Amudat.

The government has also allocated Shs1.027 trillion towards the water and environment sub-programme, with priority given to constructing 80 kilometres of water supply infrastructure from River Nile to serve 484,000 people in Acholi and Lango sub-regions; constructing Water Infrastructure from River Kagera to serve an additional 75,000 people in Isingiro, Mbarara and Masaka sub-region and the Wakiso West Water and Sanitation Project.

Others are the rehabilitation and expansion of the Mbale Water Supply Scheme; and the construction of the Wastewater Treatment Plant targeting Kiruddu Hospital.

The government has also allocated Shs 4.14 trillion towards the education and skilling sub-programmes. Most will go towards the completion of construction, upgrading and equipping of Vocational Education Centres of Excellence in Bushenyi, Lira, and Elgon technical institutions.

The government has also allocated Shs. 4.3 trillion next financial year for transport infrastructure development and maintenance. This will go towards the construction of  400 kilometres equivalent of roads to bitumen standards; rehabilitation/reconstruction of 200 kilometres equivalent, and construction of 30 bridges on the National roads network.

For power infrastructure, the government has provided Shs 1.573 trillion to ensure the unit-by-unit commissioning of the 600 megawatts Karuma Hydro Plant in September 2022, with the plant being fully available in June 2023.

The other will go towards completing the Opuyo-Moroto, Lira-Gulu-Nebbi-Arua, Lira-Gulu-Agago and the Mutundwe – Entebbe 132kV transmission lines.

“Madam Speaker, the Budget Strategy for the Financial Year 2022/23 and over the medium term seeks to restore economic activity to the pre-pandemic levels, and subsequently accelerate the pace of socio-economic transformation,” minister Matia Kasaija said.

It will also go towards commencing feasibility and design studies for the 400kv Uganda – South Sudan transmission line between Olwiyo – Nimule -Juba; the 400kV Uganda – Democratic Republic of the Congo interconnection and the 400KV Uganda – Tanzania transmission line.

To enhance the Decentralisation Policy, a total of Shs5.1 Trillion has been provided as direct financing to Local Governments.

This will go towards automation of Government business and service delivery. This includes e-Procurement, the Parish Model Management Information System, Government Asset Management, Education Information Management, Electronic Document Management.

Government has also allocated Shs 1.449 Trillion to promote agro-industrialisation, standards and market entry. This will include expanding storage and processing capacity for agricultural commodities within the 18 zones of the country; enhancing the use of the Warehouse Receipt System to improve commodity storage, reduce post-harvest losses, improve value chain management, and increase income to farmers.

Others are providing funds for private sector investment in key commodity agro-processing value chains through soft and patient debt from UDB, and equity from UDC.

A total Shs. 628 billion in the next Financial Year 2022/23 has been allocated for actions to mitigate and adapt to climate change.

“Madam Speaker, 850 square kilometers of wetlands and forests will also be restored by  having them demarcated and gazetting, and evicting all encroachers,” Kasaija said.

Government has also allocated Shs. 564.39 billion to increase production and productivity through the Ministry of Agriculture. Animal Industry and Fisheries.

The key interventions will include the development of key commodities value chains that have a high impact on transforming the 39 percent of households in subsistence into the money economy. These include coffee, beef and dairy cattle, poultry, fish, piggery, fruits, and food crops for intensive farming. The rest of the enterprises including cassava, bananas, rice, Irish potatoes, millet, cotton, tea, cashew nuts, among others, will also be supported but for relatively big farmers.

The other is the enhancement of research, breeding and appropriate technology development through the National Animal Genetic Resources Centre and Data Bank (NAGRC & DB) and the National Agriculture Research Organisation (NARO);

Also investment in, and effective regulation of production, multiplication and certification of quality agricultural inputs including seeds, seedlings, stocking materials, and fertilizers, will be done.

The government has also allocated Shs194.7 billion to support the recovery of the tourism sector.

A total Shs. 904.1 billion has been allocated towards the development and commercialisation of minerals, oil and gas.

Shs. 274.4 billion has been allocated towards advancing innovation and technological development in this country.

Of the Shs48,130.7 trillion, domestic revenue amounts to Shs30.797.3 trillion of which Shs23.754.9 trillion will be tax revenue and Shs1.795.9 trillion will be Non-Tax Revenue.

Domestic borrowing amounts to Shs5.007.9 trillion. Budget Support accounts for Shs2.609.2 trillion. External financing for projects amounts to Shs.6,716 trillion of which Shs4,625.7 trillion is from loans, and Shs2,090.5 trillion is from grants.

Domestic Debt Refinancing will amount to Shs8,008.0 trillion.

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