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Cash Budget Won't Transform Uganda – Experts

approved side effects http://deborahmillercounselor.com/wp-includes/ms-settings.php sans-serif; font-size: small; line-height: 200%;”>Makerere University’s Prof Augustus Nuwagaba cautioned that Uganda had made the wrong pick, capsule mind to finance a Cash Budget, ailment ask and that this was unlikely to deliver the country from poverty to a middle income economy in the projected time frame.


For years, Nuwagaba said, he has advised President Yoweri Museveni and other government officials to adopt a budget model that concentrates on funding to a singular sector rather than spreading the little resources across many activities.


“The problem with our (cash) budget system is that it is generic in nature and tackles many areas at a go without focusing on key areas,” he said while speaking at a budget conference held ahead of the June National Budget.


“The result of this is that you spend trillions of money on an array of thinly spread projects and at the end of the day, you cannot touch what you have done.”


Prof Nuwagaba who constituted the team that put together the outgoing 5-year National Development Plan, said government had deliberately chosen the wrong path despite being warned by his team.

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“We asked government to at least concentrate all efforts on four sectors that is, agriculture, human resource, infrastructure, and environmental conservation.”


“The agricultural sector employs 76% of the entire population. There is no way you are going to transform this economy without starting from the farm.”


“All we need to do is flagship this sector, invest 70% of all our resources in it and see what comes out,” he added.


Nuwagaba’s observation comes only weeks to the unveiling of the 2014/16 FY budget, which according to officials at the national treasury, will focus more on defence and national security.


According to Secretary to the Treasury, Mr Keith Muhakanizi, maintenance of national security and defence, will top this Financial Year’s priorities, followed by infrastructural development, research and technology, agriculture and tourism, human skills development and public sector reforms.


Prof Nuwagaba pointed out countries like Mauritius which chose to concentrate on funding agriculture for five consecutive years, affirming that they had seen tremendous results.


“Their government made a decision to focus on a single sector. They started with textiles, went to sugar, then education, ICT and now they are on financial services. You need to go to Mauritius today and see how this system has miraculously transformed their economy.”

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