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Govt seeks Shs 700bn supplementary budget

The government has tabled a supplementary expenditure budget of Shs 770.2 billion to facilitate the procurement of two Bombardier planes for the revival of the national flag carrier, Uganda Airlines. Part of the money will also be used to cover compensation Buganda kingdom, the completion of Uganda Martyrs Shrine and facilitation of Atiak sugar factory, among others.

The request was tabled before parliament's Budget committee on Wednesday by state minister for Planning David Bahati. The supplementary budget covers Shs 280 billion to secure the delivery of two Bombardier planes from Canada, Shs 380 billion to cater for classified expenditures under the ministry of Defence and Shs 3 billion billion to compensate for Buganda kingdom for land.

The government also requires an additional Shs 10.3 billion to purchase Okello House and Shs 10.8 billion for the construction of a centre of excellence in Pediatric Surgery in Entebbe and others.   

The others are Shs 28 billion for electric sub-stations for the Namanve Industrial Park, Shs 12 billion for completion of Uganda Martyrs Shrine, Shs 3.4 billion to cater for street children, Shs 10 billion to purchase planting materials for Atiak sugar factory and Shs 2 billion  to facilitate the Commission of Inquiry on Land Matters and others.   

A further Shs 20 billion is for wage supplementary, Shs 1.5 billion for Steel and Tube factory grading, Shs 3 billion for Foot and Mouth Disease (FMD) vaccines, Shs 5 billion for representation of Uganda in the cases against Democratic Republic of Congo (DRC) and the termination of the Rift Valley Railways concession and Shs 1.09 billion for external funding under Financial Management and Accountability Programme (FINMAP) from EU contingency towards closure activities of FINMAP III.    

Bahati appealed to the Budget committee to approve the additional funding specifically speaking about the Shs 280 billion required to facilitate the delivery of two planes within the next 10 days so that the airline can immediately start operations.   

Last year, the government placed a firm order worth $190 million (about Shs 711 billion) for four CRJ 900 planes from Bombardier, a Canadian manufacturer for regional airliners. A video of a test flight for one of the jets recently excited Ugandans when it was posted on YouTube and immediately went viral.    

Bahati says the source of funds for the payment of the planes is the expected proceeds from the MTN license renewal and the capital gains tax from the oil and gas sector. Parliament approved a total budget of Shs 32.7 trillion for the current financial year 2018/2019.

Comments

0 #1 kabayekka 2019-03-09 07:23
One needs to listen to the Opposition Shadow Opposition minister of finance or The People's Government minister of the treasury so that this Long Serving government's expenditure can be well understood and appreciated by the tax payer of this country.

This long serving government has a bad example of bad governance where it is grabbing money from commercial companies as their workers are erratically deported from their places of work.
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0 #2 Miki 2019-03-09 20:28
Uganda should have put this locally raised money towards building the standard gauge railway before throwing anything in the money pit called a national airline.

It is true that most airlines and rail systems are losing money and therefore need large subsidies to stay in business.

But if a poor country like Uganda has to choose, as it must, between subsidies for a railway network and an airline, this should be an easy choice.

The railway project if done with Ugandan money, built by Ugandans and with a reach not dictated by some opaque donor somewhere in Europe, it would have the bigger multiplier effect more linkages to real people than a vanity airline.

More jobs/benefits during the construction phase, making Uganda a real transport and logistical hub if extended to all Uganda's borders and beyond, relief to the crisis called Ugandan roads, and likely to significantly cut freight cargo charges which affect competitiveness.
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0 #3 Miki 2019-03-09 20:51
The rulers are tired of waiting for airlines they cannot order or commandeer after their shopping trips to Europe and the middle east.

They want an airline which will accept promissory notes to fly their family members for their holidays, shopping trips and medical appointments Europe.

It has been said that the real reason Mr. Museveni finally moved towards this airline thing was when one time he couldn't get either Kenya Airlines or Ethiopian airways to divert a plane from their routine services, to avail it to Uganda for charter when the presidential jet was undergoing maintenance service.

That is the real reason the rulers are pushing for a venture that should come bottom on the list of Uganda's priorities. Did somebody just laugh at Bobi liquid for seeming shallowness in the grasp of economic/financial lingo? You should laugh the loudest at people who make choices like this.
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0 #4 kalengera1 2019-03-11 22:43
African idiocy knows no limits... Our hospitals have no medicines, our roads are pot-holed, our teachers demoralized and we are wasting money on aeroplanes.

Dear Lord please have mercy on us!!!
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