The moment most businesses were waiting for happened on Thursday June 14, 2018. Finance Minister Matia Kasaija presented the 2018/19 Budget at the Serena International Conference Centre. Ugandans were all attentive hearing which sectors had received more funds and which sectors were being given less.
The budget also provides a springboard for business to strategically “waylay” money allocated from the budget.
The money to be spent in the financial year was earmarked for distribution amongst 18 sectors of government.
Works contractors eat big
According to the Budget, the works and transport sector will still enjoy the lion’s share of about Shs 4.707 trillion (21 per cent) while Science, Technology and Innovation will take the least share of Shs 71.8 billion (0.3 per cent) percent, which is less than Shs 71.9 billion received last year.
Last financial year Works and Transport was allocated about Shs4.587 trillion or 20.8 per cent of the total budget of Shs29 trillion, a one percent increase.
Debtors in things
Minister Kasaija highlighted that government would spend Shs2.701 trillion on interest payments. This is 12.3 per cent of the total budget, also an increase of 0.3 per cent when compared to the allocations received in the financial year 2017/19. Like the current financial year, Interest payment is second to Works and Transport in terms of resource allocations but it also signifies that government is committed to paying the public debt.
Happy times for Oil, Gas, Energy and Education providers
The sectors of Energy & Mineral Development, Education and Health got allocations in trillions of shillings, underlying their importance to the population. The Energy sector was allocated Shs2.529 trillion, which is a 1 per cent increase from that of the current budget.
The education and health sectors took home Shs2.419 trillion and Shs1.636 trillion respectively, even though both sectors had their allocations cut, when compared to the ended financial year. However, most of the allocations were payment of salaries as opposed to capital development.
Also, compared to the ended financial year, the sectors of public sector management, security and Justice Law and Order took as much as over trillion shillings each, their allocations had a cut. They got Shs 1.449 trillion, Shs1.357 trillion and Shs1.104 trillion respectively.
Money in Agriculture
The Accountability, Agriculture, Water & Environment, Public Administration, Legislature and Social Development sector received Shs866.6 billion, Shs831.7 billion, Shs713.7 billion, Shs566.2 billion, Shs483.8 billion and 175.1 billion, respectively. Though, allocations to Agriculture and Water & Environment increases by Shs3.5 billion and 0.3 per cent respectively. This is good news for the agricultural sector.
Tourism to mint cash
Other sectors that ate big include Lands, Housing and Urban Development, Tourism, Trade and Industry,ICT & National Guidance which had a slight increase in their resource allocations of Shs147.7 billion, Shs119.4 billion and Shs109.1 billion, from the current releases of Shs139.9 billion, Shs116.6 billion and Shs104.3 billion respectively.
Pensioners will be paid
Pensioners who have long trekked to Kampala with envelopes full of documents with despair on their faces now have reason to smile. In the new budget, Finance Minister Matia Kasaija provided Shs156.08 billion for gratuity and Shs77.07 billion as a contingency fund. This is good news for our aging former workers.