The Ugandan Government has revised its budget for 2015/2016 upwards to 24.1 trillion shillings up from this year’s 15trillion shillings.
It is the second time the government revises its budget upwards for the 2015/2016 financial year from Shs18.3 trillion to Shs24.1 trillion.
The confirmation is contained in Secretary to Treasury Keith Muhakanizi’s May 19 letter to the Clerk to Parliament, containing the details of the addendum to the Corrigenda (correction in Budget) schedule to the draft estimates for the Financial Year 2015/16. The initial corrigenda was issued on May 13.
The corrigenda, amounting to Shs5.6 trillion of which Shs486.1b (about 8.7 per cent) is for recurrent expenditure, Shs446.8 billion (8.0 per cent) is for development expenditure and an additional Shs4.6 trillion (about 83.4 per cent) is for statutory expenditures.
Shadow finance minister Geoffrey Ekanya, however, said the record election year Budget “is going to cause a debt crisis” as government “struggles” to close the gap. Mr Ekanya said government would have to borrow from domestic sources to plug the gap.
“They are going to take all the money from the pension fund and the commercial banks, he told journalists yesterday at Parliament, adding: “We will have a debt crisis. Inflation will increase to levels beyond those that prevailed in the immediate aftermath of the 2011 general election. We suspect the additional money will be used for electioneering.”
Mr Kasaija described the increment as “a mere book entry” adding that “There is no new money being created; we are simply recognising that government has domestic debt obligations. So we are bringing it to the books of Parliament,”
This move has raised suspicion, especially amongst opposition lawmakers, barely seven months to the general elections.
Parliament was thrown into confusion when the Defence minister Chrispus Kiyonga and Finance minister Matia Kasaija gave contradictory statements over why government had raised the budget.
According to the Secretary to the Treasury, Mr. Mukhanizi, “This is not fresh money but an old bond that the new law requires be declared and approved by Parliament. So it is not new but a roll over (Reinvesting funds from a mature security into a new issue of the same or a similar security.)”
The money will be invested in infrastructural projects like Karuma Dam, Isimba and other power projects.
Via: Daily Monitor