The Parliament of Uganda on Friday 24-April-2020, Passed a Budget of Shillings 45 Trillion for 2020 / 2021 Financial Year.

The budget which saw an increment of over shs6 trillion from the 2019/2020 budget was passed Friday, 24 April 2020 at a sitting chaired by Speaker Rebecca Kadaga following debate on the budgetary allocations where MPs called for interventions in the health sector amid the current corona virus pandemic.

The debate following the adoption of the Budget Committee report which recommended that government revises and reviews the Budget after the full effect of Covid-19 on the economy is ascertained.

According to the sector allocations, Works and Transport takes an allocation of shs5.84 trillion followed by Security with an allocation of shs4.504 trillion.

Interest payments will take shs4 trillion, Education shs3.6 trillion, Health sector budget is shs2.7 trillion while the Agriculture sector gets shs1.324 trillion.

The budget is expected to be funded by resources from domestic revenue amounting to shs21.7 trillion and domestic borrowing shs3.55 trillion.

Energy and Mineral Development takes shs2.6 trillion.

The budget which will come into effect on 1st July 2020 is an increase of 12.36 per cent compared to the approved resource envelope for the current financial year 2019/2020.

Parliament’s Budget Committee Chairperson Amos Lugoloobi reported to parliament after considering the figures under the Appropriation Bill, 2020.

According to Parliament’s Budget Committee Chairperson, the total Domestic resources financing the coming financial year budget will constitute 72.5 percent while external funding will constitute 27.5 percent. Lugoloobi cites need for Government to strengthen the mobilization and collection of revenues, which have stagnated below 16% of Gross Domestic Product (GDP) for the past years.

The Minister for Finance, Hon. Matia kasaija put Parliament on notice that he would come back for any reviews in the Budget since it has been considered under the unclear circumstances of the corona virus pandemic.

According to the Public Finance Management Act (PFMA), 2015, Parliament is mandated to approve the National Budget by 31st May.

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