2023/2024 FY budget cuts
The government has taken strides to cut back on expenditures for the 2023/2024 Financial year budget.
The cutbacks will ensure at least shs3.7 trillion shillings is reduced in budget cuts to enable the Uganda Revenue Authority- URA service increasing debt.
Uganda’s Public debt currently stands at 86.6 trillion shillings as of June 2022 and is set to increase from the current 48.4 percent to 53.1 percent in the financial year 2023/ 2024.
These reductions included in a revised Budget Framework paper on expenditures still leaves the forthcoming 2023/2024 budget at 50.8 trillion, an increase compared to the current FY budget.
In a revised circular released by the Finance Ministry, the government said there will be no borrowing in the next financial year.
“This shall continue over the short to medium term so as to minimize the share of URA revenues being used to service debt in the medium term so as to make more resources available to finance critical development priorities for the government,” the communication by the Ministry of Finance reads in part.
In the communication released by the MOF permanent Secretary Ramanthan Ggoobi,the government has prohibited travel abroad for officials with exception to the President, Vice President, Speaker, Deputy Speaker, Prime minister, principal judge and critical travel for security and resource mobilization. The government has also reduced spending by 50%, spending on workshops and seminars.
Ggoobi says the government intends to save up to 108 trillion shillings by minimizing workshops, travel and non- essential expenditure.
The Ministry of Finance in 2020 indicated it would save the government over shs 200 billion per year by banning the travel of its officials abroad.
Ggoobi also states that there will not be any more pay rises for civil servants for a period of one year until 2024/25 financial year.
The government is also set to freeze the purchase of new vehicles in the forthcoming financial year 2023/24 with exception of hospital ambulances, vehicles for medical supplies or distribution, agricultural extension services, security and revenue mobilization.
The government says no new non- concessional projects will be provided except for those already provided for in the budget framework or those with no direct or indirect claim on the consolidated fund.
The circular also states that the government has restored the reduced wage and non wage for revenue generating subventions and those with statutory requirements.
However,despite the cut back, the 2023/2024 FY budget has been revised upwards to 50.8 trillion shillings and reduced the discretionary source to 3.4 trillion in the current FrameWork paper.
