Kira Municipality Member of Parliament, Ibrahim Ssemujju Nganda has appealed to the Budget Committee of Parliament to slash funds allocated to the State House in every financial year budget, to only UGX. 12 Billion.
Hon. Ssemujju Nganda made this pertinent appeal yesterday at Parliament, while reacting to the report presented to the floor on annual budget estimates for the financial year 2023/24.
The report presented by Chairperson for the Parliamentary committee on budget Hon Opolot Patrick Isiagi (Kachumbala County) indicated that Uganda’s public debt will soar further as the government prepares to borrow more UGX. 20 trillion to cater for the estimated UGX. 52.74 trillion budget, up from UGX. 48.43 trillion in the current financial year.
Hon. Ssemujju firmly noted that Uganda is deadlocked in a debt trap which deteriorates by the day due to unnecessary, reckless borrowing, and irresponsible spending, characterized by pumping taxpayers money into non productive areas.
In particular, the outspoken but enraged legislator questioned the relevancy of apportioning UGX. 400 billion to the State House, yet Uganda is a poor country, whose funds should be spent sparingly, not lavishly.
“Whatever they are manufacturing at State House, Allah knows. There is 550 million Shillings to buy clothes, the same amount was provided last year, this means we are spending on average one million shillings on President Yoweri Museveni ‘s clothes every day,” asserted Hon. Semujju.
“Our President is not a star from Hollywood, requiring to change wardrobe everyday, he is a President of a poor country. What happened to the clothes we bought last year?” Hon. Semujju further wondered.
Adding weight to Hon. Semujju’s assertions, Hon. Opolot Patrick Isiagi urged the government to limit borrowing to priority areas and invest only in highly productive projects.
He suggested that government should set aside adequate resources in financial arrears budget to clear the current stock, having revealed that Uganda’s public debt is projected to increase by 2.5% in the next financial year
“To this end, government should ensure that over the medium term borrowing is limited to critical projects while minimizing acquisition of debt on non concessional term, so our negotiators must step up their acts so that if we are to borrow, we borrow only concessional, and if we are to invest, we must invest in where there is productivity and we must ensure there is value addition so that we earn our own money, not borrowing and investing anyhow,” Hon. Patrick Isiagi said.
Hon. Muwanga Kivumbi, the Shadow Minister for Finance in his minority report said that a claim by government that UGX. 25 trillion of the UGX. 52.74 needed for the overall budget is available in the country’s coffers is an illusion.
He accused the government of betrayal and double standards, by lying to the population that UGX. 25 trillion to cater for the budget in the 2023/24 financial year is actually available in the state treasury, and revealed that the government only has UGX. 17 billion.
“They have not deducted total wage, they have not deducted the contingency fund. When you deduct all the four items, the free discretionary expenditure of the government, when you deduct these figures, you remain with 17 trillion. This is really absurd because as we go to reallocate, let us know that the only money to play with in the whole 52 trillion budget is only 17 trillion. The rest of the money goes to debt management,” said Hon. Kivumbi.
The report further indicates that to support the UGX. 52.74 trillion budget, the government needs to gather tax revenue amounting to UGX. 29.67 trillion, while 2.7 trillion will be from foreign aid in form of grants and cash handouts.
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