Experts poke holes in 2022 Budget Framework paper
Experts have warned that the country risks falling into a debt trap since Debt repayment is taking the lion’s share of the 43 Trillion Budget framework paper. They advise the government to instead invest in real economic activities that can raise revenue. Daniel Lutaaya reports.
Parliament on Friday passed the 2022/2023 financial year 43 Trillion shilling Budget framework paper with 15 trillion shillings allocated to Debt repayment.
Jane Nalunga, the executive director of the Southern and Eastern Africa Trade Information and Negotiations Institute says the country is in trouble since Uganda Revenue Authority collections alone cannot finance the budget and we now have to borrow to pay back loans.
In the Budget Framework paper, a meager 1.8 Trillion is allocated to Agro industrialization. Nalunga says that not prioritizing agriculture will mean less production for export and contribute to the low collections at URA.
Government in the financial year 2022/2023 plans to collect Shs 25.72 trillion in domestic revenue compared to the Shs 22.83 trillion target for this financial year 2021/2022.
Nalunga reveals that Uganda has failed to utilize the negotiated markets abroad due to this low investment in value addition and agro processing.
Mawogola South Mp and member of the Budget committee of Parliament Mary Gorretti Namugga says even the money the country is borrowing is being misused since the biggest chunk is used in recurrent expenditures like salaries for government officials.
Namugga notes that the budget framework paper shows the economy is on a downward trend.
The approved budget decreased by1.69 trillion compared to the current financial year budget. Documents before parliament also indicated that the other sources of funding for the next budget are grants totaling Shillings 869 billion, domestic borrowing Shillings 10.4 trillion and external borrowing of Shs 5.99 trillion.
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