Budget Cuts Honest – Economists

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Economists have described the budget cuts in the budget framework paper 2022/2023 as an honest decision of the government after the country suffered two years of lockdown with paralyzed economy. These say the budget cuts are inevitable with the effects of COVID 19 still biting the country’s development partners in the West that previously co- funded our budgets. They however warn that it’s time for the masses to prepare for hard times.

In the current budget framework paper, the government downsized the national budget from UGX. 44.7 trillion in the current financial year to UGX. 43 trillion for the next financial year of 2022/2023 to minimise the rate at which the government is getting loans to fund the national budget.

The affected sectors include;

  1. Works and transport ministry which registered a cut by 450 billion shillings.
  2. Parliament 24 billions shillings.
  3. Tourism 20.5 billion Shillings.

But to economic researcher Ronald Mukasa and Geoffrey Ekanya the decision to cut the budget is an honest one given the fact that COVID-19 continues to affect the development partners and the local revenue collection. Experts say that in recent years, the government has been struggling to realize revenue collection targets due to closed business as a result of COVID-19. These are now advising the government to re-plan the economy and come up with viable ways of increasing the tax base but also downsizing the government.