Published on 12/09/2024
The Minister of Finance, Planning, and Economic Development, Matia Kasaija, on Wednesday presented Uganda’s Budget Strategy for the Financial Year 2025/2026 at Speke Resort and Convention Centre in Munyonyo.
This year’s budget focuses on the theme of “Full Monetization of Uganda’s Economy” through a multi-faceted approach. The strategy emphasizes accelerating commercial agriculture, fostering industrialization, and expanding both service sectors and digital transformation.
Key areas of focus include enhancing market access and leveraging technological advancements to drive economic growth. This strategic direction aligns with the goals outlined in the NRM Manifesto and the Fourth National Development Plan (NDP IV), setting the stage for significant economic transformation. The budget aims to build on previous successes and address emerging challenges to ensure a resilient and dynamic Ugandan economy.
Meanwhile, Prime Minister Robinah Nabbanja has instructed the Ministry of Finance, Planning, and Economic Development to ensure that all government projects are fully prepared, including securing the right of way, before acquiring or signing any government loans or grants. This directive comes after reports highlighted challenges with low budget absorption, particularly with loans and grants, due to bureaucratic delays in right-of-way acquisition, procurement issues, and limited implementation capacity.
“These inefficiencies cost the government significantly through increased commitment fees. To address this, I am directing the Ministry of Finance, Planning, and Economic Development to ensure that all projects are fully prepared, including securing rights of way, before any loans or grants are signed,” Nabbanja said during the opening ceremony of the National Annual Performance Review, organized by the Office of the Prime Minister at Speke Resort and Conference Centre, Munyonyo, in Kampala.
This year’s National Annual Performance Review is the fourth to assess the progress of the Third National Development Plan (NDP III). The report focuses on evaluating government performance for the fiscal year 2023/24, based on key result areas (KRAs) and the budget released to implement service delivery programs.
Unlike previous assessments that focused on processes and systems, the current review adopts a more comprehensive approach, evaluating the overall functionality of systems in relation to the targeted outcomes of NDP III.
“The goal is to assess each program’s contribution toward increasing household incomes and improving the quality of life for Ugandans,” stated Nabbanja.
She emphasized that the review aims to provide policymakers with reliable, timely data by highlighting what has been accomplished, what remains undone, and the reasons for any shortcomings to inform better planning.
“Colleagues, please remember that lessons learned from implementing previous strategies should help us improve the planning and budgeting processes for NDP IV. A well-coordinated and effectively guided approach will ensure proper prioritization of the available resources,” she added.
Related
Finance Ministry Engages In Consultations For Amendments To Public Finance Management Act – National News Expressnationalnewsexpress.com
Ministry Of Finance Under Scrutiny: Parliament Demands Answers On Unapproved Spending Of UGX 4 Trillion – National News Expressnationalnewsexpress.com
Ministry Of Finance Unveils Reforms To Slash Down Wasteful Government Expenditures & Unnecessary International Travel – National News Expressnationalnewsexpress.com
Another key focus of the review is assessing the progress in implementing the National Resistance Movement (NRM) Manifesto (2021-2026). Since May 2021, the NRM government has been working on a new manifesto that builds upon the achievements of the previous one (2016-2021).
“As of July 2024, the NRM Government has fulfilled 35% of its 809 manifesto commitments, with 49% in progress and on track, while 16% remain pending,” Nabbanja reported.
The review also covered progress on the implementation of the Sustainable Development Goals (SDGs), with notable advancements highlighted. Uganda has made strides across the 17 SDGs, which consist of 169 targets and 232 global indicators, 201 of which are relevant to the country.
“I am pleased to inform you that Uganda ranks 18th globally, with an overall score of 54.88%, compared to the regional average of 52.7% in 2020,” said Nabbanja.
This positive performance is attributed to several policies and programs enacted by the NRM government, including the operationalization of the Parish Development Model (PDM), investments in science, innovation, and industrialization (such as the establishment of regional industrial parks), social protection programs for women, youth, and the elderly, job creation initiatives, and open refugee protection policies.
Nabbanja commended the ministers, technical heads of various program secretariats, ministries, departments, agencies (MDAs), local governments, and development partners for their contributions to the review.
Local Government Minister Raphael Magyezi noted that the economy is showing steady improvement, with promising indicators for future growth. The report shows a general decline in poverty levels across most regions, in line with the NRM Manifesto 2021-2026, though Karamoja and Acholi have seen increased poverty rates.
Magyezi also pointed out that Uganda is facing challenges in financing external loans, primarily due to delays in providing counterpart funding for several projects. Despite improvements in government programs, the country continues to lose wetlands at an alarming rate.
