Parliament has passed the Shs 30 trillion Budget Frame Work paper for the FY 2017/2018. The Budget Frame Work paper was discussed by the Budget Committee chaired by Ntenjeru North MP, Amos Lugoloobi with some recommendations.
Key among the recommendations is that government should only acquire loans after preparing adequately for the intended project to enable adequate absorption capacity. The Committee also asked government to increase funding to the local government percent by 30 percent from the proposed Shs 1.7 trillion.
The local government sector received Shs 1.27 trillion in the last financial year. The Committee also recommended an increase of Shs 50 billion on the Shs 50 billion meant for recapitalizing Uganda Development Bank (UDB) if the bank is to make any impact. The committee also recommended that government regulates interest rates for long-term capital at UDB but it shouldn’t exceed 12 percent per annum.
They also wanted government to identify priority areas that need to be funded. The Committee also recommended the allocation of Shs 16 billion to develop research infrastructure at Rwebitaba Zonal Agricultural Research and Development Institute (ZARDI) and the National Semi-Arid Resources Research Institute (NASARRI).
The MPs proposed that government reallocates the Shs 10 billion for buying hoes to funding research activities. Government already reduced the Agriculture budget from Shs 57 billion in the FY 2016/17 financial year budget to Shillings 17.8 billion in the 2017/18 financial year budget.
On the health sector, the Committee proposed an increase in the monthly lunch allowance for medical workers across the country. They proposed an allowance of Shs 288,000 for nurses, doctors and other health workers – Shs 12,000 per day. Currently, doctors and nurses receive Shs 66,000 and Shs 44,000 respectively as their monthly lunch allowance.
The Committee further recommended an additional Shs 645 billion for the health sector. The money is to cater for among others, Hepatitis B vaccination, procurement of adequate suppliers of ARVs under the National Medical Stores (NMS) and improving the staffing levels to at least 72 percent in general hospital among other areas.
The Committee also directed government to allocate Shs164 billion required for upgrading of Health Centre IIIs to Health Centre IVs in 29 counties and an additional Shs 247 billion the construction of 93 Health Centre IIIs in sub-counties where no government facility exists today.
While passing the Budget Frame Work paper, the speaker Rebecca Kadaga asked government to implement the recommendations made by the budget committee.
Earlier on, Moses Balyeku, the Jinja Municipality West MP called for allocation of adequate resource for promoting industrialization if the country is to help local investors.
“They have allocated Shs 50bn, we are talking about industrialisation, we’re talking about helping local investors also borrowing from those banks. Shs 50bn is $15m. Five borrowers are going to finish the money or even one borrower. So what kind of capitalisation are doing in this bank? I want to call upon government to be serious on this issue of the development bank. $15m is a drop in an ocean. We can’t afford to have a development bank which has a capital of $15 million in this era.”
David Bahati, the State minister for Planning said government is taking steps in ministries and departments intended to address the problem of increasing domestic arrears.
The minister also said that accounting officers shall not be permitted to commit government without accompanying budgeting.