Government has set aside Shs530 billion as salary increment for selected civil servants in the 2018/2019 financial year, bringing the total expenditure on salaries and wages to Shs4.1 trillion.
The money is contained in the Shs30 trillion budget tabled before Parliament last week by Finance minister Matia Kasaija.
Mr Kasaija said the Shs530 billion is cater for enhanced salaries for medical workers, scientists, public universities, low ranking police officers, prisons, UPDF legal professionals and political leaders in local governments.
“The salary increment will be undertaken in a phased manner in order to achieve our medium term pay targets,” the minister said.
2017 was marked by numerous civil servants sit down strikes arising from the need to recognise their dedicated services through increased pay.
The strikes paralysed service delivery in sectors such as health and the judiciary (specifically prosecutors).
Two weeks ago, the association of trade unions that brings together over a million workers in Uganda has rejected the proposed pay rise by government and warned of industrial action should a new structure not be put in place in three months.
The National Organisation of Trade Unions (NOTU) claims that the proposal announced by Secretary to Treasury Keith Muhakanizi falls way below their earlier demands.
The non-wage recurrent expenditure has been allocated Shs14 trillion and Shs11.7 trillion for development expenditure.
Out of the Shs30 trillion for the budget, Shs10 trillion (about 33% of the entire budget), will be spent on debt repayment. Government expects to borrow Shs894 billion locally and Shs6.9 trillion externally.
The minister explained the budget was drafted in a way that makes it able to achieve middle income status by 2040.
Mr Kasaija also said as part of revenue raising measures, government will implement the levying of taxes on rentals, telecom, banking and beverages.
The Works and Transport sector will take the bigger portion of the budget (Shs4.8 trillion) as has been in the previous budget.