Parlaiment has approved UGX 44.7 Trillion Budget for the financial year 2021/2022.
The approved budget is a decrease by 714.9 billion (1.6 percent) compared to this financial year 2020/2021 budget. According to Parliament’s Budget Committee Chairperson Amos Lugoloobi, the decrease is mainly attributed to a projected decrease of 2.42 trillion Shillings, in external financing for project support.
Government plans to collect 22.63 trillion Shillings with over 20.83 trillion coming from tax revenue in the coming financial year 2021/2022. This is to help finance the 44.77 trillion Shillings budget passed by parliament today.
Only 860 billion Shillings is expected from Non- Tax Revenue (NTR) sources and 940.4 billion Shillings from Appropriation in Aid. The budget will also be financed by resources from, Domestic Financing 11.48 trillion, external borrowing consists of 9.010 trillion, grants 1.44 trillion Shillings and others.
The budget allocations for the financial year 2021/2022 have been structured along the programme approach premised on the 18 development programmes highlighted in the third National Development Plan (NDP III).
The government has maintained the theme for the budget is Industrialization for Inclusive Growth, Employment and Wealth Creation. It is centered on policy interventions required to sustain recovery from the socio-economic setbacks caused by Covid-19 pandemic as well as harness the opportunities that come along, and the Third National Development Plan Strategic objectives.
Out of the 44.7 trillion Shillings budget, 12.66 trillion Shillings is Recurrent and Development expenditure is 14.59 trillion while 17.15 trillion is statutory expenditure charged directly on the Consolidated Fund.
