Matia Kasaaija, Uganda’s minister for finance
HABARI DAILY I Kampala, Uganda I Uganda’s minister of Finance and economic Development, Matia Kasaija has unveiled the annual budget for FY 2024/25 by disclosing that Uganda is progressing steadily towards the first oil.
“First Oil will be realised in FY 2025/26. In a bid to ensure security of supply of petroleum products, the Uganda National Oil Company (UNOC) in partnership with the private sector will commence the importation of all Uganda’s petroleum products beginning in the first week of July, 2024,” he said during budget reading today at Kololo Ceremonial Grounds.
Kasaija further revealed that in FY 2024/25, clean water coverage will increase to 70% and 85% in rural and urban areas respectively.
“In rural areas, the target is to reduce the distance to the nearest source of clean and safe water for human and animal consumption to less than 1km, while in urban areas to less than 500 metres,” he said.
President Museveni arrives at Kololo Ceremonial Grounds for the FY2024 2025 budget reading on Thursday June 13 2024
During the colorful event graced by President Yoweri Museveni and top Government officials, Kasaija said priorities in the health sector next FY include provision of essential medicines (more additional sh100 billion has been provided) and improvement of the welfare of the health workers including interns and doctors designated as senior house officers.
The reading of the budget followed the approval by Parliament of the national budget for FY 2024/2025, with expenditure totaling up to sh72.136 trillion. The price tag of the budget reflects a significant increase of sh14.050 trillion from the initial budget proposal of sh58.34 trillion.
The budget comprises recurrent expenditure of sh18.9 trillion and development expenditure of sh34.7 trillion, with the total amount including statutory expenditure standing at sh72.136 trillion.
Kasaija further said that the biggest portion of the budget, totaling to sh32.3 trillion, will be sourced from domestic revenue (tax and non-tax revenue), while other sources include budget support (grants and loans) of sh1.3 trillion and domestic financing (domestic borrowing) of sh8.9 trillion.
Additional sources include project support of sh9.5 trillion and domestic debt refinancing (rollover) of Shs19.8 trillion.
He said from the above resource envelope, sh3.1 trillion will be allocated to external debt repayment, while sh9.5 trillion will be for project support, and sh12 trillion for domestic refinancing.
“A further sh9 trillion will be used for interest payments, while sh293.9 billion will be for appropriation in aid, and sh603 billion will go towards Bank of Uganda recapitalisation,” he said.
Kasaija added that sh200 billion will go toward settling of domestic arrears, while shs9.1 trillion will cover domestic debt repayment under Bank of Uganda, and will take a first expenditure call.
The finance minister pointed out the key priorities areas for the 2024/25 annual budget as human capital development, which received up to sh9.9 trillion (26.3% of the budget), followed by investments in education, healthcare, and skills development.
Governance and security was allocated sh9.1 trillion (24.2% of the budget) to bolster law enforcement and national security measures, sustainable energy development (sh1.0533 trillion), administration of justice (sh481.4 billion), legislation, oversight, and representation (sh978.6 billion), climate change and environment management (sh682.6 billion), and Digital Transformation (sh230.9 billion).
Additional allocations include sh5.1 trillion for integrated transport infrastructure and services, sh2.3 trillion for development plan implementation, and hs2.0 trillion for private sector development.
Ministers of State in the finance ministry during the FY2024 25 budget reading at Kololo ceremonial Grounds on Thursday June 13 2024
Additionally, sh362 billion is to go towards the Uganda Secondary Education Expansion Project for the construction of 60 seed schools in sub-counties without secondary schools and the expansion of 61 existing government secondary schools, with special consideration for refugee-hosting districts and transfers to the Uganda National Examinations Board to facilitate the equating of student refugee results.
Henry Musasizi, the state minister for finance in charge of General Duties, provided insights into budget financing, stating that sh34.3 trillion is for appropriation and sh37.8 trillion is statutory.”
He said the budget will be financed through domestic revenue, budget support, petroleum fund transfers, and other sources.
“Some of the major allocations include funding for the Hoima and Akii-Bua stadia construction ahead of hosting the African Cup of Nations in 2027 and the initiation of the Standard Gauge Railway construction.
He said sh30 billion has also been allocated to kick-start the process of establishing Busoga and Bunyoro universities.
