More budget cuts affect State House, Health ministry

The Budget Committee of Parliament is in tying loose ends on the final report on the Budget Framework Paper (BFP) for financial year 2023/24 before it is approved by February 1, 2023.

But, much as there is a slight increment from the current financial budget by Shs1.8 trillion, the government continues to cut down on the allocations of funds for the different Ministries, Departments and Agencies (MDAs) ahead of the New Year. The BFP under process projects a national budget of Shs49.9 Trillion while the Budget for the year ending on June 30 is Shs48 Trillion thought it might have shot higher because of the supplementary budgets.

This website has already reported about critical budget cuts for the MDAs under the Tourism, Presidency, Infrastructure and lands. In addition, more pleadings by the Sectoral Committees have been made before the Budget Committee to consider finding resources for the affected agencies.


Uganda is among the 20 African countries that signed the Abuja Declaration, 2001 agreeing to allocate 15 percent of the national budgets to health. In April 2001, heads of state of African Union countries met and pledged to set a target of allocating at least 15% of their annual budget to improve the health sector.

In the BFP being processed by Parliament, the Ministry of Health which has been successful in the fight against Ebola disease and Covid-19 is facing serious budget cuts. The health sector has been provided with a resource envelope of Shs3.24 trillion hence being reduced from Shs3.67 Trillion in the current financial year.

The significant cuts are; Shs23.8b for infrastructure in regional referral hospitals; Shs75.4b to facilitate provision of subventions to affected services; Shs18b for first phase operationalization of nationwide ambulance system; and, Shs63.7b for wage shortfalls in Gulu, Yumbe, Lira, Kiruddu, Soroti, Kabale, Kayungu, Kawempe, Entebbe and Naguru hospitals.

Officials at the Ministry are also going to grapple with lack of funding for; boosting supplies of essential medicines by National Medical Stores (Shs87b); operationalization of ICU ward at Uganda Heart Institute (Shs20b); purchase of medicines and sundries at Uganda Cancer Institute (Shs40.5b); and recruitment of 808 staff in regional referral hospitals and general hospitals (Shs30b).


To people who are coming to Kampala for the first time, the situation is different from the amazing stories about the city. Kampala roads have been congested with potholes the same way the city is congested by people.

Kampala Capital City Authority (KCCA) that is charged with the day-to-day running of affairs in the city has seen less work down as the political leaders and civil service leadership keep bickering.

Now, while the motorists are ruing the poor state of roads in Kampala, the Authority has might have to bear with the roads budget cuts. The KCCA budget has been significantly cut down to Shs375.4b from Shs470.8b in the current financial year.

This budget cut has not spared the roads in the city because out of the required Shs78b to fix the road network around Kampala, the Ministry of Finance has indicated that it can only fund Shs10b worth of roads in the coming financial year.

Back to presidency

Away from the Shs21.95b needed to procure new vehicles for both the President and Vice President, the Office of the President has seen its budget cut by Shs15b from the current financial year’s budget of Shs219.168.

The Committee on Presidential Affairs has now recommended for an additional allocation of Shs13.3b to annually for the construction of 20 offices for the Resident District Commissioners. Each of the 134 Districts and 11 cities must have an RDC or Resident City Commissioner and their deputies.

Other priorities that the Committee has recommended for consideration in the final budget are; procurement of medals for awarding at national ceremonies (Shs4.23b), vehicles and other operations for newly appointed Presidential Advisors (Shs5.1b) and operationalization of Presidential Advisory Committee for exports and industrial development (Shs3.528b).

For State House, Finance did not provide for Shs14.4b in the State and unfunded priorities that needed even more funds include; fulfillment of Presidential pledges (Shs30b), promotion of international relations and regional integration (Shs8b) and procurement of security equipment (Shs13.4b).


The Ministry of Finance is the go to place by any of the MDA that is facing budget cuts but it has also not spared itself while considering reduction of the money in order to meet the priorities of the government.

A critical analysis of the report of the Committee on Finance indicates that the Ministry of Finance’s budget has been cut from the current Shs2.6 Trillion to Shs2.3 trillion. The committee report does not explain why 11.2 percent reduction in this budget.

Other entities under Ministry of finance that are facing funding gaps are; National Planning Authority (Shs42.7b); Uganda Investment Authority (Shs268.5b); Financial Intelligence Authority (Sh9b); and, National Lotteries and Gaming Regulatory Board (Shs18.9b).

Where is the money going?

Currently, the budget is allocated under a programme based approach instead of the sector based approach. The programmes that are proposed to take the biggest percentage of the Budget are; Development Plan Implementation (Shs18.8 trillion); Human Resource Development (Shs9 trillion); Governance and Security (Shs6.82 trillion); Integrated Transport Infrastructure and Services (Shs4.6 trillion); Private Sector Development (Shs1.7 trillion); Agro-Industrialization (Shs1.4 trillion); and, Sustainable Energy Development (Shs1.2 trillion).

Other programmes proposed appropriations are; Shs919.9b for Legislature, oversight and representation; Shs634.6b for regional balanced development; Shs539.2b for sustainable petroleum development; Shs547.3b for natural resources, environment, land and water ; Shs422.7b for administration of justice; and, Shs268.4b for manufacturing.

Meanwhile, programmes that are expected to receive the lowest funds in the next financial year are; community mobilization and mindset change (Shs21.9b); Mineral Development (Shs38.5b); tourism development (Shs89.2b); sustainable urbanization and housing (Shs104.9b); digital transformation (Shs176.7b); and, innovation and technology development (Shs177.5b).

In the resource envelope, the Ministry of Finance projects to raise Shs28.8 trillion from local revenue; Shs2.49 trillion from Budget support; Shs1.5 trillion from domestic borrowing; Shs8 trillion from projects support/external borrowing; Shs8.7 trillion from domestic refinancing; and Shs238.5b from local government collected revenue.

Comparing the current budget and the projections for the next financial year; the government will borrow less domestically by Shs3.4 trillion down from Shs5 trillion in the 2021/22 budget whereas external financing will increase by Shs1.3 trillion in the coming year. Budget support is also projected to go down by Sh117.6 Billion from the current budget’s figure of Shs2.6 trillion.

Uganda Revenue Authority (URA) is expected to collect more taxes to meet the rise in the projected domestic revenue of Shs28.8 trillion up from Shs25.5 trillion that is supposed to be raised by June 30, 2023.

According to the BFP, Shs30.2 trillion is expected to be spent by the government on the Medium-Term Expenditure Framework (MTEF) which focuses on expenditure for programmes like Governance and Security, Public Administration, Judiciary, Legislature, Agro-industry and Human Capital development, among others.

Meanwhile, Shs2.4 trillion is planned for external debt repayments; Shs8 trillion to be spent on external financing; Shs8.7 trillion to pay domestic debts and Shs200b to settle domestic arrears.

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