Ugandan Budget Increased to 24 Trillon

Government has increased the 2015/16 financial year budget to Shs24.1 trillion.

This has been confirmed by the Ministry of Finance Permanent Secretary Keith Muhakanizi in a May 19 letter to the Clerk of Parliament containing the details of the Addendum to the Corrigenda schedule to the draft estimates for the Financial Year 2015/16.

This is the second time in many months the government has revised its 2015/2016 budget estimates. The initial correction was issued on May 13.

In essence, the government has revised the election year budget from Shs18.3 trillion to Shs24.1 trillion, which finance minister Kasaija, described as “a mere book entry”. It means the budget has now been increased by 30%.

The Shadow Finance Minister Geoffrey Ekanya says the record election year budget confirmed by Finance Minister Matia Kasaija and Secretary to the Treasury Keith Muhakanizi “is going to cause a debt crisis” as government “struggles” to close the gap.  The 2014/15 budget was about Shs15 trillion

Speaking to KFM Muhakanizi said under the new Public finance Act they are required to allow appropriation by parliament.

The corrections to the budget, amounting to Shs5.6 trillion of which Shs486.1 is for recurrent expenditure, Shs446.8billion is for development expenditure and an additional Shs4.6 trillion is for statutory expenditures.