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Winners & Losers In Uganda’s Shs45 Trillion 2020/21 Budget Revealed

Finance Minister Matia Kasaija will read the national budget in June

Uganda’s projected budget for 2020/21 Financial Year is estimated at Shs45.149Trn which is an increase of 12.36% from the 2019/20 budget.  The Total Domestic resources will constitute 72.5% while external funding will constitute 27.5%.

Sectoral Allocations

According to Parliament’s Budget Committee report on the 2020/21 Appropriation Bill 2020, Works and Transport remains the biggest winner in terms of allocation despite some cuts.

The sector has witnessed budget cuts to Shs5.84 Trn, down from Shs6.4Trn received in 2019.

 Security will witness an increment from Shs3.62Trn in 2019 to Shs4.5Trn, while Government has increased allocation to Interest Payments from Shs3.145Trn in 2019 to Shs4.086Trn in 2020.

The Education sector has been allocated Shs3.624Trn in 2020, up from Shs3.397Trn in 2019.

The Health sector will also witness an increment from Shs2.58Trn in 2019 to Shs2.77Trn in 2020.

Energy and Mineral Development sector will witness budget cuts from Shs3Trn in 2019 to Shs2.602Trn in 2020.

The Accountability sector will receive Shs2.106Trn in 2020, up from Shs1.627Trnin 2029, while the Justice/Law and Order sector will see an increase from Shs1.732Trn in 2019 to Shs2.025Trn in 2020.

Local Government Sector has been allocated Shs1.752Trn in 2020, up from Shs1.260Trn in 2019, while Water and Environment Sector will receive Shs1.681Trn in 2020, up from Shs1.092Trn in 2019.

Agriculture, the backbone of Uganda’s economy continues to get meager allocations; the sector will receive Shs1.324Trn in 2020, up from Shs1.053Trn in 2019. Tourism, another key sector for Uganda’s economy will see its budget increased from Shs193.7bn in 2019 to Shs198.028bn in 2020.

Government has allocated Public Administration Shs1.321Trn in2020, up from Shs979.1bn in 2019.

Legislature will witness budget cuts from Shs687.8 in 2019 to Shs667.8bn in 2020.  Public Sector Management budget will also be reduced from Shs887.8bn in 2019 to Shs675.182bn in 2020.

Science, Technology and Innovation will have its budget increased from Shs186Bn in 2019 to Shs264.5Bn in 2020.

The Lands, Housing and Urban Development sector budget has been reduced to Shs200.6bn in 2020, down from Shs227bn in 2019.

Social Development will receive Shs172.2bn in 2020, down from Shs219.2bn in 2019.

Trade and Industry Sector budget will be reduced to Shs171.8bn in 2020 from Shs202.8bn in 2019, while ICT & National Guidance had its budget revised upwards from Shs146.2bn in 2019 to Shs162.9bn, bringing total sectoral allocations to Shs32.661Trn.

Additionally, Government allocated External Debt Repayments Shs1.228Trn in 2020, up from Shs723.32bn in 2019.

For Domestic Refinancing, Government has allocated Shs7.486.14Trn in 2020 from Shs6.452Trn in 2019, which accounts for a lion’s share of 16% of the budget.

Government has reduced domestic arrears allocation to ShsShs400bn in 2020, down from Shs449.53bn in 2019.

Appropriation in Aid (AIA) has been allocated Shs215.59bn in 2020, from Shs201.11bn in 2019, bringing Uganda’s total national budget allocation to Shs45.49Trn.

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