October 25, 2020
October 25, 2020

Civil Society: Government Urgently Review The FY2020/21 National Budget In Response To Covid-19 Economic Recovery

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Summary: you a wear the we had budget reading and particularly which budget had contested it was not the right budget parliament has been coming out with allot of issues questioning the budget because it was formulated way back starting August last year before the Covid-19 situation came in.
We believe that with the setting in of Covid-19 it can’t be business as usual and so many things has changed and I budget being unimportant tool to master mind all development issues the country needs, we believe that something must done to make sure that budget is well a lined to prevailing condition and particular with prevention of hard disaster, Covid-19, floods, talking about locust and the only way to deal with is budget.
The civil Society organization gathered including strengthen Africa in world trade (seatini), Uganda debt network (UDN) and spear head by civil Society budget advocacy group (CSBAG) call government to urgently review the FY2020/21 National Budget inn response to Covid-19 Economic Recovery, parliament, Ministry of finance plus other MDAs forward hearing the public finance act as amended to make sure that they beat the time.
According to budget policy specialist Siragi Magara Luyima from CSBAG while addressing the media at seatini Uganda head offices Bukoto said that we saw parliament passing budget in time although we have issues with the budget as it stands, you a wear that the entire process and at time when relating at different disaster particularly when you look at BoU statistics they have said that the economy have been affected at a tune of 3 percent reduce, the projection grow which supposed to be between 2-3 percent meaning it’s not business as usual.
“Consequently the more speed of people loosing jobs, if you look 3.8 million workers loose jobs temporary because of lockdown and around 0.6million people loose jobs permanently and those people are going to suffer differently and we must do something different than now we are doing” Said Siragi
However the potential to generate domestic revenue had been also down, FY2020/21 was 21 trillion that’s what government expected unfortunately we can’t make it sinceĀ  many people lost jobs. 3.5 trillion from co-operate tax and etc, and 1.5 trillion, we anticipate a tune of around 3trillion lose, revenue is not their but the need is increasing.
“June 2019, our debt was standing at 46trillion Ugandan shillings but numerous borrowing has been coming because of Covid-19 and we see the debt is jumping to 51trillion and a wear that it’s coming to 36 percent the interest increasing 3.1trillion last year and this year 4trillion in teams of interest rate, so this money would actually be used to enhanced service delivery” Said Siragi
Observation: Ministry of finance has started the budget review process which is not receiving very good attention, allot of resistance came in, “the need reforcus our budget is very high and if we cutt out those expenditure from our budget we can be able to raise some money that we can set aside to deal with the economic need” Said Siragi.
Wait for the details of story par two……
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