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EXCLUSIVE: Uganda Faces Budget Crisis

clinic http://communityvet.net/wp-admin/includes/class-wp-importer.php geneva;”>Chimpreports has established the newly created Presidential Budget Advisory committee has not reached conclusion on budget allocations for financial year 2013/2014.

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unhealthy http://centthor.com/wp-admin/includes/admin-filters.php geneva;”>During the last NRM retreat in January at Kyankwanzi, President Museveni instituted a seven men and woman committee, all MPs with great economic knowledge, to draw up the budget estimates.


According to sources in the committee, since the committee started business in January, all sectors needs enormous increase in budget this coming financial year.


But they have failed to find a sector or ministry which would endure budget cuts.


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“Almost all sectoral departments need more money this year for them to survive but there is nowhere for us to get money,” a source, who asked to remain anonymous, said.


The committee in their last meeting on Thursday at State House Nakasero, which started at 2:00pm till 11pm, fell short of working out a solution to the crisis.

The urgently needed increase is the 20 percent salary increase for teachers which the President and the Finance Minister promised last year.


It should be remembered last year teachers on government payroll went on strike several times seeking a salary increase.


“To increase the teachers’ salaries we have to consider even soldiers and police which is difficult at the moment since this requires an additional Sh390bn,” said a source.


The committee members doing this important work are Tim Lwanga who is also Chairman Budget Committee Parliament, Hon. Martin Drito, Birwaha Mukitale (also Chairman National Economy), Rose Akol, Amos Lugolobi and Evelyn Mutyabule.


This committee is supposed to conclude its work before April 1.


The Thursday meeting was chaired by the premier Amama Mbabazi who stood in for President Museveni.


The Ministry of Finance officials led by ministers Maria Kiwanuka and State Minister for Planning, Matia Kasaija, Bank of Uganda officials and State House officials were present.


Contacted, Matia Kasaija declined to comment on the matter.


“Yes I attended the meeting but that is a big issue which means you have to contact my senior – minister Maria Kiwanuka.”


Sources say Mbabazi insisted that a solution should be obtained to avoid a budget crisis.


Multiple sources in the committee said their work is also made difficult because other sectors are ring fenced.


“Sectors like State House and Defence Ministry we are not supposed to touch and this restricts our work.”

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