MPs have approved a supplementary budget worth Shs 3.729 trillion for the 2020/2021 financial year to cater for critical areas that are not covered for in the budget and the economic pressures necessitated by the COVID-19 pandemic.
The supplementary comes just a month into the second quarter of the financial year. In June, parliament passed a budget of Shs 45.49 trillion for the 2020/2021 financial year. According to the approved supplementary budget, Shs 1.357 trillion has already been spent within the 3 per cent legal limit, while an extra Shs 1.982 trillion has been allocated for classified expenditure and the 223km road project in the Democratic Republic of Congo (DRC) and ministry of Finance among other items.
Shs 389.3 billion was approved as well as among other things to cater for Local Governments. Shs 357 billion will go towards the transfer of funds from former municipalities to newly created cities. According to the breakdown, Shs 1.1 trillion is going to the Defense and Veterans Affairs ministry for classified expenditure while State House will get Shs 450 billion for classified expenditure.
However, some MPs questioned why time and again State House keeps on requesting additional money instead of budgeting for its expenditure properly. Cecilia Ogwal, the Dokolo Woman MP why State House continuously asks for more money-making it seem like they have unending needs or the items were unforeseen.
Budadiri West MP, Nathan Nandala Mafabi said State House needs to present a comprehensive picture of their needs instead of the current trend where there is a supplementary request for State House shortly after the budget approval. He said State House had already received Shs 400 billion as its budget.
The speaker of parliament Rebecca Kadaga ruled out the proposal by the two MPs, saying they were debating in anticipation. The House which, started on the debate on the Budget Committee report on supplementary expenditure schedule approved all of the proposals with the only changes being deferred is the payment of Shs 30 billion for compensation of cattle lost in Acholi, Lango and Teso region.
The funds were meant to go to war claimants but MPs said the ongoing verification should first be concluded. They also amended the proposal to have Shs 50 billion of the presidential initiative on wealth and job creation “emyooga” given to Kampala and Wakiso and instead agreed to distribute it countrywide.
The ministry of Finance had allocated Shs 615 billion for Uganda Development Bank to support sectors affected by COVID-19 and Shs 160 billion for the Emyooga project. Shs 390 billion was approved for the new cities and Shs 45 billion for Uganda Telecom to pay off a loan.
Ministry of Health will receive Shs 189 billion for capacity building for the National Medical Stores (NMS) and Shs 50 billion for additional COVID-19 support. Others are items in the supplementary are Shs 100 billion for Uganda Development Corporation to support businesses affected by COVID-19, Shs 60 billion for Uganda Revenue Authority and Shs 223 billion is for recurrent domestic arrears for rent, land, and cooperatives.
Another Shs 220 billion is for the bilateral road infrastructure project between Uganda and the Democratic Republic of Congo (DRC). National Agricultural Advisory Services (NAADS) gets Shs 100 billion for proposed interventions, Uganda Police Shs 30 billion for fuel and meals, and Shs 50 billion for the Electoral Commission.
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