How did Parliament pass the 45 Trillion budget at the peak of the corona-virus?

Minister of finance and economic planning left Parliament well away he will return to the house to fix loose ends in the budget.

Here is how minister Matia Kasaija had been facilitated to run the economy. Works and transport Shs5.8 trillion, security 4.5 trillion, interest payment 4 Trillion, education 3.6 trillion, ministry of health 2.8 trillion, ICT 162 Billion
trade 171 billion, tourism 198 billion and classified expenditure 2.8 trillion.

The world wide corona-virus pandemic forced the head of state President Yoweri Museveni to impose a countrywide lock down.

The lock down had public and private transport, bars, clubs, markets, borders and the airport among other areas totally closed.

What does this mean to the minister Kasaija and the economy? Uganda’s economy is made up of the Agriculture 24.2%; Industry 25.5%; and Services 50.3% sectors.

The service industry includes; Wholesale and Retail trade, Telecommunications, Hotels and Restaurants, Transport and Communications and Tourism sub sectors.

The agriculture sector includes; Fisheries, Animal Husbandry, Dairy, and Crop sub-sectors.

The Industrial sector includes Manufacturing, Construction, and Electricity Supply sub-sectors

The Covid-19 lock down had the services and industry sectors hit the most with bars, restaurants, clubs, borders, airports all closed and factories not operating at full strength.

The industrial sector can not function to its full ability with the above all closed. Many of the workers are not salary earners. They are paid day by day basis.

This means half of the population is on partial unemployment. There is a possibility of several of the businesses not coming back.

So does the budget passed by the Parliament have the Covid-19 priorities right? Obviously, no! Yes, the nation has prioritized roads, electricity and telecommunication for the past decade. But, with the current Covid-19 effects, Kasaija should have been advised to edit his check list.

Uganda Revenue Authority has been ask to raise Shs21.7 trillion. Amazing! URA is looking at the service sector to majorly finance half of what they have been asked to present to Kasaija. The service sector is bleeding! It will require massive backing from the state. Uganda can not afford what the better part of the world is doing to help with their businesses and employees.

But the economy needs those who feed it in a better shape. What would it then be able to do within the shoe string pockets? Kasaija would have to prioritize the Agriculture, trade and tourism sectors. This is where most of URA’s interests fall. Most businesses will need re-capitalization. Where will this money come from? This is where the state comes in.

Many will argue Bank of Uganda has eased the CBR. True, but has any one asked how many businesses already have loans with banks? We are talking about a pandemic that has caught us all off guard. The government will not want to see itself struggle at the fiscal year rather will it want to confront a population without jobs. It is a hard asking for everybody involved but government must come in.

The three sector ministries should be asked to carry out a census and assess the weight of the damage. How much damage businesses have been subjected to and what is the strain on employment.

If it requires readjusting some of the allocations, so be it. Some adjustments can be made in the works, security, interest payment and classified expenditure to help businesses stand the times and keep their workers.

Uganda has sustained economic growth at an average rate of 7% per annum. This is going to be unlikely with the Covid-19 damage to the key sectors.