Government cuts spending in the FY 2024/24 in order to reduce on borrowing so as to manage the escalating public debt burden. The country’s total debt burden is currently standing at UG Shs 80 trillion.
President Museveni who addressed Parliament on zoom while at State House said Ushs 16 trillion were borrowed erroneously without proper expenditure planning. He blasted the public officials who he said borrowed this money without his consent and part of this amounting to Ushs 4.4 trillion still lying on accounts of the different government agencies.
Museveni said that this prompted him to invoke his powers and stop unnecessary borrowing gave orders for all government borrowing must be approved by him.
While reading the budget, the minister for Finance, Planning and Economic Development, Matia Kasaija said that government will not buy new vehicle this FY and foreign trips by ministers and other government officials will be very minimal and ministers will only be traveling on very important trips.
In the budget speech the minister indicated that Ushs 10.7 trillion is earmarked for serving both the domestic and foreign debts.
How government sectors will share the Ushs 52.274 trillion budgeted in the FY 2O23/24
As usual the ministry of defense takes the lion’s share of Ushs3.8 trillion and roads sector has been allocated the second largest of 2.4 trillion
Ministry of Health and Education has been allocated a total of 4 trillion, where the Education and Gender shares 3 trillion while the Health sector gets only 1trillion.
Kasaija said that Ushs 20.9 trillion will be collected from taxes where out of this will be collected from corporate taxes and Ushs 20.7 trillion will be generated from borrowing and donations and the rest will come from other nontax sources.
The minister also said that in the current budget 504 roads will be constructed and this includes those that are planned to repaired but out of this Kampala Metropolitan ( Kampala Capital City, Wakiso and Mukono) will benefit most
By George Bukenya