The FDC is concerned with the recently passed budget by Parliament amounting to 72.136 trillion shillings for the 2024/2025 financial year, which allocates a significant portion of its resources to non-priority areas, potentially misaligning with the needs and concerns of the average Ugandan. Some examples include:

1. Allocating a Large Chunk to Debt Repayment: A significant portion of the budget goes towards servicing external and domestic debt, which may not directly impact the average citizen’s life. According to the approved budget, the Ugandan Government will invest the following amounts in debt servicing:

• 3.1 trillion for external debt repayment
• 9 trillion for interest payments
• 12 trillion for domestic refinancing
• 9.1 trillion for domestic debt repayment under the Bank of Uganda

Domestic Borrowing: Due to the fact that government no is longer borrowing from international development partners, as Uganda is nearing the debt ceiling, it has resorted to borrowing from local commercial banks. This domestic borrowing will shoot up to 2.7 trillion shillings, creating competition with local businessmen who have long called for reduced interest rates on borrowing by the Central Bank. This unhealthy competition for borrowing in commercial banks between the government and local businessmen will strain the economy.

1. Funding Non-Essential Projects: The budget has allocated funds to projects that may not be priority areas for the average Ugandan, such as luxury infrastructure projects or vanity projects. Clear examples include:

• Over 600 billion shillings invested in Lubowa Hospital with no progress at all
• 07% of the total budget allocated to the community mobilization and mindset change program
• 100 billion shillings allocated to the non-functional Atiak Sugar project
• Overemphasis on defense and security; allocating a significant amount to this sector, which may not be a priority for many Ugandans

1. Underfunding Essential Sectors: Essential sectors like healthcare, education, and agriculture may receive inadequate funding, directly impacting the average citizen’s life.

The FDC proposes the following to address the issue of having a pro-people centered budget:

1. Increased Transparency and Accountability: We call upon citizens and civil society organizations to push for more transparency and accountability in the budgeting process.
2. Participatory Budgeting: We call for a participatory approach in budgeting, where citizens are involved to ensure priorities align with their needs.
3. Re-Prioritization of Budget Allocations: We call for a re-prioritization of budget allocations to focus on essential sectors that have a direct impact on the average citizen’s life.

By addressing these issues, the Ugandan budget can be made more responsive to the needs and concerns of the average Ugandan.

We are also concerned with the frequent requests for supplementary budgets by the government, which raises concerns about the integrity and meaning of the budget process. A supplementary budget is intended to address unforeseen expenses or emergencies, but when used excessively, it can undermine the original budget’s purpose and integrity.

The repeated requests for supplementary budgets have led to:

1. Lack of Fiscal Discipline: Supplementary budgets have created an environment where budgetary constraints are easily circumvented, leading to reckless spending and fiscal indiscipline.
2. Erosion of Budget Credibility: Frequent changes to the original budget have reduced its credibility and made it less reliable as a planning tool.
3. Overspending and Inflation: Excessive supplementary budgets have led to overspending, fueling inflation and potentially destabilizing the economy.
4. Lack of Transparency and Accountability: Supplementary budgets have been used to obscure questionable expenses or allocations, reducing transparency and accountability.
5. Undermining of Parliamentary Oversight: The frequent use of supplementary budgets has weakened the role of parliament in scrutinizing and approving government spending.

To restore the meaning and integrity of the budget process, FDC demands:

1. Strengthen Budget Planning and Forecasting: Improve the accuracy and reliability of budget projections to minimize the need for supplementary budgets.
2. Enhance Transparency and Accountability: Ensure that supplementary budgets are justified, transparent, and subject to rigorous scrutiny.
3. Improve Parliamentary Oversight: Strengthen the role of parliament in reviewing and approving supplementary budgets.
4. Promote Fiscal Discipline: Encourage responsible spending habits and adherence to the original budget.

 

HON. ROBERT CENTINARY

FDC VICE CHAIRPERSON