The government on Thursday presented a Shs52.7 trillion budget for the financial year 2023/2024. The minister of finance, Mr. Matia Kasaija, while reading the budget speech, reassured Ugandans that the country’s economy has remained resilient, and is on a steady recovery path.
“The economy this year is projected to have grown by 5.5 percent compared to 4.6 percent last year. This year’s performance compares favourably with the average growth rate for sub-Saharan Africa, estimated at 3.6 percent for the calendar year 2023,” the minister said.
He added: “The size of the economy is estimated at Shs184.3 trillion, compared to Shs162.9 trillion last year. This is equivalent to $49.4 billion compared to $45.6 billion last year.”
However, the budget has been received with mixed reactions from service seekers.
Tekwaro Lango Paramount Chief Moses Michael Odongo Okune said the government must find affirmative action for those who lost cattle during the insurgency in northern Uganda.
“As a cultural leader, I am very pained to see that these survivors are living destitute, and the case must be brought forward so that they are supported. In case of any supplementary budget or if there will be some adjustment, my people of Lango, whose cattle were looted, and the people who were killed, raped, and maimed in Barlonyo (Lira), Abok (Oyam), Abia, and Amononeno (Alebtong) must be compensated.”
Mr Odongo, the former executive director of the Uganda Road Fund, also said the president needs to ensure there is a drastic reduction in wasteful expenditure in the government.
“I thank the President for that vision, but he must pay close attention to certain aspects of the economy. The investment in roads must continue and be sustained. Our tax regime should not be too stringent to discourage investment,” he said.
Mr Santos Labeja, a resident of Western Division, Soroti City, said the budget speech has become a ritual, with very little or nothing to boast of in the rural communities.
Mr Daniel Eigu, a political activist, said beneficiaries of the Parish Development Model (PDM) will use the funds to pay, among others, for drugs and other services because public health facilities grapple with drug stockouts and inadequate staff.
“Much of the money will be used for the treatment of family members, making it difficult for such households to realise the benefit of the loan,” he said.
Mr Eigu also said the PDM funds might also be “swindled by technocrats in local governments, and in the end, most projects will stall or be poorly done”.
Mr Amos Wasikye, a resident of Mbale City, said he was happy that small and medium enterprises (SMEs) will be supported by a $200 million World Bank investment to promote industrialisation.
“This investment will in the long run increase the exportation of Ugandan products and generate direct and indirect jobs for our youth,” Mr. Wasikye, a businessman in Mbale Central Market, said.
Ms Agnes Muyobo, another resident and businesswoman, said the Shs1.1 trillion allocated to PDM will boost household incomes of Ugandans.
She added: “But the government should fight corruption.”
Mr Ibra Musosi, a resident of Mbale City, lauded the Finance Ministry for allocating Shs110 billion to address food insecurity.
Mr Ali Mango, a financial expert, was concerned about the increasing public debt.
“The public debt currently stands at Shs80.8 trillion. This is not good for the country, and it calls for strategies to boost the capacity to increase domestic revenue collection,” he said.
The chairman of the Central Division in Kabale Municipality, Mr Sam Arinaitwe, said: “This year’s annual budget is fairly balanced compared to that of last year. Allocating Shs1 billion for every district for road fund activities is a great milestone, although its distribution was not sensitive to the different sizes of the districts and municipalities.”
Mr Eric Guma, an agro-input dealer in Moyo Town, said: “It is good that Shs2.2 trillion has been allocated for food security, irrigation, and disease control, and if well utilised, this will help improve the mechanisation of agriculture.”
Ms Loyce Aciro, a resident of Awindiri Cell in Arua City, said: “The government needs to reduce debts so that Ugandans can get the benefits of the taxes that we pay.”
Ms Proscovia Adiru, a businesswoman in Arua City, said: “I expected a tax reduction on some of the products because when taxes are high, Ugandans lose businesses. High taxes discourage economic growth.”
Mr Ronald Isagara, a resident of Kakumiro District, said: ‘‘Some years ago, African countries, including Uganda, participated in the Maputo Declaration, where they resolved to have at least 10 percent of the national budget allocated to the agriculture sector. When you look at this budget, little funds have been allocated to the key sector.’’
Mr. Joseph Washington Segoza, the district councillor for Kasambya Sub-county, said that the allocation of more funds to PDM will help put more people into money-making classes.
Mr Paul Mulindwa, the executive director of Kitara Civil Society Organisation Network, said: ‘‘We think this budget sets the target high for Ugandans , especially for Uganda Revenue Authority in terms of revenue collection. The allocations are fine, especially on social services to local people, which can lead to sustained service delivery if implemented appropriately.”
Mr. Jafari Basajjabalaba, the Bushenyi District chairman, said: “At least this budget is far better than the previous ones Ugandans have seen, because, as Bushenyi District, we are going to benefit in many ways.”
The chairman of the Uganda National Teachers’ Union in Bushenyi, Mr Alex Musinguzi, however, disagreed with Mr Basajjabalaba.
He said: “The government has failed to raise a single book for the Senior Three class. The unusual thing in the budget is that the government has included money for people to drink alcohol in terms of the Parish Development Model and Emyooga. The budget has neglected some sectors like education.”
The Kanungu LC5 chairman, Mr Sam Kajojo, said: “Since Finance Minister Matia Kasaija mentioned that Uganda has been listed as the best tourism destination, I implore the government to deliver the presidential pledges on tarmacking tourism roads, especially in Kigezi Region, where it earns about Shs400 million per day from tourists that track the mountain gorillas.”
Kisoro District chairman, Mr Abel Bizimana, said: “We are grateful that the government has allocated trillions of dollars to PDM. This calls for the government to involve the district council leaders in the implementation and supervision of this programme instead of sidelining them and directly dealing with the district commercial officers.”