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BUDGET WATCH

Gov’t to spend shs8trillion on new projects

The breakdown of the NDPII core projects

PARLIAMENT: In its multi-Year commitment plans, Government has earmarked Shs8.064Trn, of which Shs2.739Trn representing 34% is Government financing and Shs5.324Trn 66% is external financing.

Under the 2018/2019 budget, the total development budget under the Medium Term Expenditure Framework stands at Shs11.796Trn in FY2018/2019.

The Ministry of Finance tabled a total of seven new projects that have been granted project codes for inclusion in the budget and for subsequent appropriation by Parliament in line with Section (13) of the PFMA Act 2OI5.

Kiira Motors project among the target for the allocation (file photo)

Notable among these projects is the revival of the Uganda Airlines, Kiira Motors Corporation, Land Acquisition and a number of retooling projects for UNRA and Office of the President.

These projects are expected to impose financial obligations on the Budget to a tune of Shs1.138Trn.

The rest of the externally funded projects under this category, which include National Oil Palm project and Local Economic Growth Support Project, await final approval by parliament.

The Committee observes that the total financing requirement the multi-year commitments of Government for the FY2018/2019 to 2022/2023 amounts to Shs34.963Trn, of which Shs18.527Trn (53%) is Government funding and Shs16.436Trn 47% is External financing.

An oil palm field in Kalangala. Budget allocations to the oil palm project await approval (FILE PHOTO)

The Committee noted, however, that some key projects that are covered in the MTEF, do not appear in the multiyear commitments, and these include:

However, Government has been forced to bandone a number of projects among which include; Multinational Lake Victoria Maritime Communication, Transport project Shs1 1.084Bn, New Standard Gauge Railway Line Shs72.2Bn.

The development of the new Kampala Port in Bukasa that was to cost Shs84.66Bn, Entebbe Airport Rehabilitation Phase 1 that is set to cost Shs151.584Bn and Development of Kabaale Airport Shs176.277 have all been dropped.

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