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    Home»National

    Winners, losers in public spending cuts

    Whereas budgets of government entities such as State House, Office of the President increased, crucial areas such as HIV/Aids prevention are facing budget cuts.
    April 29, 2023 National 2 Mins Read
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    President Museveni is set to acquire a new vehicle fleet among other benefits even as key ministries, departments and agencies or MDAs face deep cuts in next financial year’s budget.
    In their report on the Budget Framework Paper (BFP) of 2023/2024 for the Office of the President, the parliamentary Committee on Presidential Affairs has greenlit the expenditure that the Finance ministry had initially shelved.

    Several MDAs will have to contend with the 40 percent budgetary cuts, with Mr Ramathan Ggoobi—the Secretary to the Treasury—saying this week that the cuts are “actually budget repurposing [meant to] move money from certain areas that may be important but not critical to those areas that can’t be postponed.”
    Statistics from the Finance ministry show that the State House budget will reduce by 2.8 percent from Shs434.4 billion to Shs421.8 billion in the next financial year. This is largely down to a “substantial reduction of 40 percent in proposed allocation to the domestic development expenditure category.”

    The State House’s wage Bill will, however, increase from Shs22.6 billion to Shs25.2 billion. Elsewhere, Shs57.1 billion has been ring-fenced for refurbishing Entebbe State House; repair and maintain Nakasero State Lodge and the 23 upcountry state lodges; procuring support vehicles; carrying out the annual maintenance of the presidential jet and helicopter; and procuring specialised security and ICT equipment.
    Whereas only Shs21.7 billion had been provided by the Finance ministry, the House committee has recommended that an additional Shs35.4 billion be made available.

    Saturday Monitor understands that from that Shs21.9 billion from that Shs35.4 billion will be used to procure security equipment.
    “The committee noted with concern that the current fleet for the principal is aging and failure to provide the required Shs21.9 billion to facilitate procurement of vehicles constrains the role of mobilising masses and leaders for socio-economic transformation and prosperity in all the regions of the country,” the report by the House Committee on Presidential Affairs notes.

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