KCCA seeks UGX 8 billion to finance a supplementary budget

By Robert Segawa

Kampala Capital City Authority has asked Parliament to approve a supplementary budget of over 8 billion to cater for the office of the speaker.

The Kampala amendment act created the position of the speaker and his deputy to preside over KCCA council meetings.

Appearing before the council on Tuesday, the authority acting executive director Eng Andrew Kitaka said the current proposed budget can not cater for above positions.

He further revealed that the speaker will be earning a monthly salary of 13 million shillings and his deputy will be earning 11 million shillings without allowances.

KCCA is expected to present their budget frame work paper today in Parliament.

Ugandan economy has grown by 6% over the last two years

By Alice Lubwama
Uganda’s economy has grown by 6% per annum over the last two years according to finance minister Matia Kasaija.

While presenting the national budget 2019/2020 at Serena hotel Kampala this afternoon, Kasaija noted that with the progress in the economic growth average income of Ugandans has increased to USD 825 per person during the financial ending 3oth June 2019 compared to 800 dollars in the previous year not withstanding increase in population growth.

The quality of Ugandans labor force also improved with a proportion of labor force from tertiary institutions by 13.6 % from 7.5 % .

The annual growth in formal employment also increased higher than the average growth of the economy. Services increased to 48.7% from 32% , while exports in none traditional cash crops earned Uganda over 2.84 billion u.s dollars in the last financial year.

The composition of exports also changed positively with exports of light manufacturing products exceeding the traditional merchandise.

According to Kasaija as a result of opening up a number of new factories in the financial year ending 2019. a proportional of Ugandan products in supermarkets has increased from 15% to 45%.

The minister also outlined some development challenges the country is still facing including unemployment,income in quality and malnutrition and unhealthy life styles among others.

He said that 4 out 4 Ugandan youth were unemployed noting that even the quality of work was worrying.

Kasaija called for increased labour productivity in Agriculture and aggressive promotion of agro processing as a basis for Uganda’s industrialization and further job creation.

The current survey according to kasaija shows that 50% of Ugandans were working in service sector, 35% in Agriculture sector while 14.4% in industry sector.

Uganda’s economy has grown by 6% over the last two years

As the minister of finance and economic development Matia Kasaija presents the 4.5 trillion shilling national budget on Thursday 13th June, Ugandans have been assured that there are no new taxes.

The chairperson of the finance committee of parliament Henry Musasizi noted that parliament only introduced administrative measures with the aim of improving efficiency with in tax administration. “Measures are aimed at bringing down the taxes and we have actually terminated withholding tax of 1%on agricultural inputs.” Musasizi added.

However a member of the budget committee of parliament also Butambala county MP Muwanga kivumbi say that the 2019/2020 budget which is due to be read tomorrow by finance minister Matia kasaija will have an effect on some livelihoods because of the manner in which it was processed in parliament.

The 2019/2020 financial year budget was passed by parliament without debate on the budget committee report.

Muwanga say that by the deputy speaker Jacob oulanyah denying MPs opportunity to debate and make changes in allocation of the money Some sectors will be affected

The mp specifically singled out the youth livelihood fund and NAADS money which cabinet has shifted to state house. Muwanga say if MPS were allowed to debate,they would have rejected such a proposal to shift the Money.

The mo also say that Parliament had rejected the move to increase the salaries for only science teachers but because the matter was not debated on while passing the budget, art teachers will miss out.

The 2019/2020budget of 405 trillion shillings will increase by 8 trillion shillings from the 2018/2019 financial year budget of
32.7 trillion.

Some of the least funded sectors are Tourism,ICT,trade and industry ,science and technology, lands and housing and social development.

Ugandans shouldn’t worry about new taxes -MP Musasizi

By Alice Lubwama
Government will not introduce any new tax in the national budget 2019/2020 which will be read today 13th June by the finance minister Matia Kasaija.

The chairperson of the finance committee of parliament Henry Musasizi has given an assurance to Ugandans that parliament did not approve any new tax apart from introducing administrative measures which will improve efficiency with in tax administration.

“Measures are to bring down the taxes and we have actually terminated withholding tax of 1%on agricultural inputs.” Musasizi added.

But an opposition member of parliament on the budget committee Muwanga kivumbi say that apart from parliament passing the budget without following the right procedure, there is a lot of borrowed money which will not be utilized in the budget because of luck of counterpart funding by government.“ for example UNRA alone we lost last year 200 billion in idle time and on loans that were not being utilized because government did not have counterpart funding.’’ Muwanga noted

The 2019/2020 financial year budget totaling to 40.5 trillion Shillings was passed by parliament without debate on the report from the budget committee.

MP Muwanga kivumbi also say that by the deputy speaker of parliament Jacob Oulanya denying mps a chance to debate the report and make some changes in allocation of funds it will have an effect on some livelihoods.

The MP claims that if the mps had been allowed to make changes in allocations, they would have saved the youth livelihood fund and NAADS funds that has now been shifted to the office of the president.

Muwanga add that parliament had resolved that government increases salaries for all teachers but because there was no debate on the report, only salaries for science teachers have been increased in the budget being read today.

Some of the least funded sectors are Tourism with 157 billion, ICT 123 billion, Trade and Industry with 171 billion, Science and Technology 159 billion, Lands and Housing 193 billion, Social Development 218 billion and others.

Parliament passes 40.5 trillion budget,works and transport ministry get the lion’s share

By Alice Lubwama
Parliament has passed a 40.5 trillion shillings budget for the next financial year 2019/2020.Next year’s budget is increasing by 20 percent compared to last year’s budget from 33 trillion shillings to 40.5 trillion shillings.

Ministry of Works and Transport takes the biggest share at 6.4trillion, Education 3.2trn while 3.1trillion has been allocated for interest payments.

Ministry of Energy will get 2.9 trillion, Health 2.5 trillion, security 3.6 trillion, Agriculture only one trillion, Justice and law and order sector will have 1.6 trillion, accountability 1.9 trillion.

Some of the ministries had a reduction in their funds and these include water and environment from 1.2 trillion to one trillion, lands and housing from 202 billion to 193 billion , science and technology 184 billion to 159 billion.

The parliament budget committee noted that Domestic and External Financing will constitute 74.5% and 25.5% of the total resource envelop respectively.

In this, the domestic revenue collections will stand at 29.4 trillion while eternal resources will yield 10trillionshillings.

Uganda Revenue authority is expected to collect 18trillion while 1.4trillionwill come from non tax revenue, other money will be attained from the petroleum fund 445bn, local government collections 201bn and domestic borrowing will yield 8.5b

Next year’s budget has had a 20 percent increment compared to last year’s budget from 33 trillion shillings to 40.5 trillion shillings.

In terms of Sect oral allocation, ministry of Works and Transport takes the biggest share at 6.4trn, Education 3.2trn while 3.1trn has been allocated for interest payment Ministry of Energy 2.9 trillion, Health 2.5 trillion, security 3.6 trillion, Agriculture one trillion, Justice and law and order 1.6 trillion, accountability 1.9 trillion.

Some of the ministries have received a reduction in their funds and these include water and environment from 1.2 trillion to one trillion, lands and housing from 202 billion to 193 billion , science and technology 184 billion to 159 billion.

The parliament budget committee notes that the Domestic and External Financing will constitute 74.5% and 25.5% of the total resource envelop respectively.

Budget committee directs to find money to fight new weed on Lake Victoria

By Alice Lubwama
The speaker of parliament Rebecca Kadaga has directed the budget committee of parliament chaired by Ntenjeru North MP Amos Lugolobi to find money for handling the new weed that has emerged on Uganda’s lakes.

Kadaga made the directive following plea by the agriculture minister Vincent ssempijja to get him funds urgently to control the kabira weed that has seriously covered Lake Kyoga before it reaches unmanageable levels.

Kadaga asked MPs to get angry and force government to find money to control the spreading of this weed because it’s dangerous.

Ministry of agriculture animal industry and fisheries requires an emergency fund of four billion shillings to maintain and operate the existing equipment to respond to abrupt resurgences of the weed on the lakes.

Sempijja informed parliament that the existing equipment at the ministry cannot handle the kabira weed that is currently affecting the water bodies unless it’s in succession with the water hyacinth and other aquatic plants.

He further noted that government still lacks the adequate human and machinery to address the challenges posed by the kariba weed.

Opposition asks government to construct new labs for UNBS

By Robert Segawa

The opposition Forum for Democratic Change (FDC) has urged the government allocate more funds to Uganda National Bureau of Standards (UNBS) to save life of Ugandans that die and get disease such as cancer because of fake materials imported in the country.

The Deputy spokesperson Of Forum for Democratic change(FDC) Paul Mwiru while addressing journalists at party headquarters Najjanankumbi today said that UNBS  doesn’t have  good laboratories to check goods that imported in the country.

Mwiru adds that fake materials cost Ugandans much because they are not long lasting which he says affects economic growth in the country.

This followed the building that collapsed at Buziga Munyonyo and left unknown people trapped due to  fake building materials.

He calls upon Parliament to fulfill the 480 billion asked by UNBS to construct labs than giving them 6 billion that was a located to them in the next 2018/19  financial budget.

Budget cuts will call for sacrifice from education sector players says Janet Museveni

Education minister Janet Museveni has told officials in her ministry to brave for tough financial times ahead of the anticipated budgetary cuts next financial year.

Speaking to journalists at the President’s Office today after releasing the 2016 Primary Leaving Examinations (PLE) results, the minister acknowledged that the budgetary cuts will not only affect the education ministry but all other ministries.

According to the proposed budget framework paper for 2017-2018, the ministry of education and sports budget will be cut from 12% to 10%. She said that all ministries’ budgets will be cut to cater for funds for irrigation.

In the financial year 2016/17, the Ministry was allocated 2.7 trillion Shillings which is likely to drop by 2%.

The minister, who is also the First Lady, noted that because because of the shortages of food in the country due to climate change, the government will focus on irrigation to boost agriculture.

She appealed to members in the education sector to be ready to sacrifice.

Museveni however said that funding should not explain the poor performance or failure to have education in the country. She added that parents in rural areas must play a role and not leave all responsibilities to government.

Results of the 2016 PLE examinations show that urban areas performed better than rural districts. The performing districts were Serere, Namutumba, Luuka, Kween, Mayuge, Kaliro, Kyankwanzi, Bulambuli and Iganga among others.

The poor performance of most schools in rural areas is attributed to lack of motivation for teachers to be in the hard-to-reach areas which continue to register many school dropouts.

 

 

-URN

Legislators pass a 1trillion supplementary budget

Parliament has approved a one trillion Shillings supplementary budget amidst contention by a cross section of opposition members of Parliament.

The Ministry of Defence will take the lion’s share of the supplementary budget with an allocation of 253 billion shillings to cover operational shortfalls in election security, wages, welfare, fuel, medical expenses and classified expenditure. The sector received a budgetary allocation of 1.4 trillion Shillings in the estimates for the financial year 2015/2016.

At least eight billion Shillings has been approved for the Office of the President, with three billion to cater for emergency classified expenditure requirements during the just concluded elections while five billion Shillings is for classified expenditure under Internal Security Organisation (ISO).

About 47 billion Shillings has been provided to the Electoral Commission to cater for short falls under the Electronic Results Transmission System after external partners, Democratic Governance Facility (DGF) pulled out, as well as make full payments for the Biometric Voter Verification System (BVVS).

Police will receive 24 billion Shillings to offset a 5 billion Shilling shortfall in budget for policing during the 2016 elections, operational costs under classified expenditure and payment for procurement of national communication equipment for national security.

A total of 89 billion shillings has been provided to cater for shortfalls in payment of pension and gratuity.

The House however disregarded Section 25 of the Public Finance Management Act which states that supplementary budget must not exceed 3 percent of the total budget passed in the same financial year.

Budget committee chairman, Amos Lugoloobi had recommended that 717 billion is passed as required by law.

 

-URN