Uganda’s parliament has approved the government’s plan to raise spending by 10 percent to Ush52.73 trillion ($14.19 billion) in the 2023/24 fiscal year, according to the finance ministry.
Ugandan law requires lawmakers to approve the government’s spending plans for a specific fiscal year before they are officially laid out in a budget speech. The fiscal year runs July-June.
The finance minister, Matia Kasaija, is set to present the 2023/24 budget to parliament early next month.
“Parliament on Thursday approved proposed overall spending for that fiscal year,” Uganda’s Finance Ministry said on Twitter on Thursday.
The government set spending for the current fiscal year at Ush48.1 trillion ($12.95 billion).
Although the ministry did not say how the funds would be allocated, energy, transport, and works and health ministries have taken the lion’s share of the resources in recent years.
Opposition lawmakers have accused the government of heavily relying on borrowing to pay for spending.
“Borrowing has significantly increased over the years, thence gradually increasing the cost of credit. This has undermined the private sector whereby the acquisition of credit has become expensive,” Mathias Mpuuga, official leader of the opposition in parliament, said on Twitter as part of their response to the proposed spending.
Read: Uganda holds key rate, sees inflation hitting target by year-end
The government defended its borrowing, saying it was necessary for infrastructure and other development projects.
This year, the finance ministry said it will not do any external borrowing in 2023/24 to ease debt-servicing pressures.
Source: The East African
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