PRESS STATEMENT

OUR MONSTER BUDGET: BETWEEN A ROCK AND A HARD PLACE

Citizens Hopes and Fears in Implementing the 24trillion FY 2015/16 Budget

Released at a press conference held at Shelter and Settlement Alternatives offices on 7th June 2015
As Ugandans await the FY 2015/16 National Budget Speech to be delivered On the 11th June
2015, by Hon. Matia Kasaija the Minister of Finance Planning and Economic Development,
Civil Society Organizations (CSOs) under Civil Society Budget Advocacy Group (CSBAG) hereby
express their opinions regarding the 2015/16 national budget which has hit a record Ushs 24
trillion mark.
CSOs would especially like to commend Government on the following:
Civil Society Organizations commend the Parliament of Uganda for working tirelessly to have the
budget approved by 31st May 2015 as stipulated in the Public Finance Management Act, 2015.
We would like to remind citizens that Parliament had in the last three financial years failed to pass
the budget within the required timeframe. We further commend Parliamentary Committees for
providing stakeholders space in April and May 2015 which enabled various stakeholders make an
input into the national budget priorities for the FY 2015/16 National budget.
We are glad that Parliament heeded to the Civil society call and considered allocation of an
extra Ushs1 bn for Foot and Mouth disease control out of the additional required Ushs 9
billion required for vaccination of animals against Foot and Mouth disease.
We are also grateful that Parliament considered our proposals for promoting progressive
taxation measures. Some of those adopted included removal of excise duty of $0.09 per
minute on all incoming calls from Northern Corridor member States (Kenya, Rwanda and
South Sudan), Increasing the diplomatic passport fee from UShs 120.000 to UShs 300,000
and increasing the Single Entry Visa Fees from $50-$80 among others.
CSOs under CSBAG also laud Parliament for reallocating an extra 5bn to Ministry of Gender,
Labor and Social Development to cater for Social Assistance Grant for the Elderly (SAGE),
childrens welfare (Ushs 1bn) and women entrepreneurship fund (Ushs 2bn) in FY 2015/16
that will enhance gender equity.
We are also happy that Government has prioritized recruitment of 900 health workers under
the Health Service Commission in FY 2015/16. This if fulfilled, will see an improvement in the
staffing levels within the health sector and especially in the lower level health centers.
We applaud the President and the entire executive for the gains registered in the Roads and
Transport Sector as demonstrated by the improved road condition of National unpaved road
network from 64% in 2012 to 67% in 2014, and the National paved road network from 74% in
2011 to 80% in 2014.

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Furthermore, Governments efforts towards increasing school enrollment at both primary

(8.1m in 2011 to 8.4m in 2013) and secondary level (1.2m in 2011 to 1.4m in 2013), as
reported in the National Statistical Abstract 2014 are commendable. We also commend
Government efforts towards attaining the Millennium Development Goal target of equal access
to education for both girls and boys at primary school level.
We are finally happy that the President after a long time appointed the Chief Justice.
Despite these positive developments, we are greatly concerned that whereas the 2015/16
budget rose to Ushs 24 trillion down from Ushs 18 trillion according to the 2015/16
National Budget Framework Paper, some key budget fundamentals have still not been
addressed. These are highlighted in the section below:
In the Education Sector, we note with concern that even after the total national budget
increasing to Ushs 24 trillion, teacher salaries requiring Ushs 130 bn for teachers and 10bn
non-teaching staff in public universities will remain a non-funded priority in 2015/16
financial year. We also note with concern that the total budget for Special Needs Education
which is required to get at least 10% of the education sector budget1 is at 0.01% (Ushs
4.12bn). The other concern under education is that despite commendable primary school
enrollment levels, completion rates in Uganda are still low at 54% as of 20142. Government
needs to improve its efforts in addressing sector challenges as part improving learning
outcomes of Ugandan children.
CSOs note with concern that with a 34.9 million population, a 3.3% growth rate and an
annual housing need estimated at 200,0003. Ugandas National Housing Policy which can
guide the nation in addressing housing challenges especially for the vulnerable including the
elderly and the marginalized has remained in draft form since 2012. Worse still the 2015/16
24 trillion budget has no mention of having the policy finalised.
Furthermore, until now, Uganda is faced with haphazard and uncoordinated physical
infrastructure developments in urban areas and there are no plans of having a National
Urban Policy. Lastly we are concerned that in 2015/16, the Land, Housing and Urban
Development Sector will have a funding gap of Ushs 4bn for developing a National Physical
Development Plan which is a requirement by the Physical Planning Act, 2010
In his State of the National Address, 2015 the President mentioned the availability of markets
for agricultural products especially coffee and fish. We are however concerned that in FY
2015/16, out of the required Ushs 35bn for this activity, only Ushs 15bn has been allocated
to boost value addition efforts and minimize exportation of raw materials. Whereas Inspection
and Certification of Ugandas export products especially agriculture is critical in maintaining
and attracting international markets, Ministry of Agriculture has a funding gap of Ushs 5.5bn
for this function.
We are further disappointed that Government has failed to fulfill its promises in the
agriculture sector. Key examples are the completion and operationalization of the Soroti Fruit
Factory. The other unfulfilled promise was Cooperative bank which Government promised in
2014/15 to improve availability of affordable financing to Small and Medium Enterprises
especially smallholder farmers. To date this Cooperative bank appears as an unfunded
priority under the Trade Sector
1

Persons with Disability Act (2006)

World Bank
3
135,000 in rural areas and 65,0000 in urban areas
2

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Whereas we support the Presidents pledge to recapitalize the Uganda Development Bank
(UDB) to the tune of Ushs 500bn4 for the purpose of providing credit facilities to the
manufacturing, service and private sector in particular. However the small holder farmers,
where 60% of Uganda derive their income, do not require UDB, they need the national
Agriculture Bank.
In 2015/16 budget, the Agriculture ministry requires an additional funding of 39bn to fully
rollout the single spine system. Key challenges to address include the recruitment of
extension workers as part of operationalizing the single spine extension. For example, out of
3236 positions required at the sub-county level for extension workers, only 389 have been
filled and out of 672 extension officers needed at district level, only 77 positions are filled.
In the Works and Transport sector, CSBAG would like Government to make serious strides
towards ensuring Value for Money within the sector given the colossal sums of money that
have hitherto been allocated to the sector. We appreciate the President pronouncement to
institute a judicial commission of enquiry to investigate corruption within the sector. We
further call for a comprehensive audit of all the funding and questionable transactions
particularly for the Standard Gauge Railway in Uganda which stalled construction for this
railway.
The 2014, Transparency Internationals Corruption Perception Index Uganda ranks Uganda as
the 142nd corrupt country with a score of 26. Our call is that as government plans to start
implementation of the Ushs 24 trillion budget, it stringently follows through on prosecution
and recovery of all public funds proven to have been embezzled
With the hope of constructing new dams like Karuma and Isimba, most Ugandans are looking
forward to increased access affordable to electricity. We also call for renewed efforts in
promoting research and innovation in generation of renewable energy alternatives that are
environmental friendly, affordable as well as sustainable.
In the 2014 State of Nation address, the President informed Ugandans about key
developments in the oil industry. There was less mention of this in the 2015 State of the
Nation address. As CSOs we would like to be apprised about the current progress towards
commencement of oil exploration, drilling and construction of the oil refinery and we hope the
Budget Speech will mention some of these.
Poor maintenance of Government health equipment remains a big challenge. This is especially
so after the expiry of the Phase 1 Imaging Equipment Project Maintenance Contract for 18
General Hospitals and 30 HC IVS in August 2012. Whereas the Ministry of Health requires
Ushs2.5 bn per year to maintain facilities functional, sadly this is not provided for in FY
2015/16 budget. We also would like to put forward our reservations regarding Government
plans to phase out Village Health Teams without actual plans on how they intend to reach out
to disabled persons, among other grassroots communities who are unable to access HC IIs.
Also sadly, is that even with 24trillion Budget, Government still has not allocated Ushs 10bn
to Ministry of Health to procure oxygen plants across the referral hospitals that are imperative
in preserving life in critical life situations.
The Water and Environment sector has a higher budget in FY 2015/16 than in FY 2014/15
due to increase in the projected external financing. We hope history does not repeat its self,
where in FY 2013/14 close to Ushs 100bn was not realized from external financing yet sector

FY 2015/16 State of the Nation address

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plans had already been drawn against this provision. We do not see much effort from
government to increase its financing to this sector.
Regarding the macro economy, CSBAG continues to call upon Government to regulate the
foreign exchange market which has since March 2105 seen the shilling depreciate rapidly
against the dollar a factor detrimental to the economy.
Our countrys external debt is currently estimated at Ushs 22 trillion. This figure excludes
1.7bn US$ for Karuma and Isimba; 12 bn U$ for the oil refinery and pipeline, Ush 3 bn US$
for standard gauge railway and 9bn US$ for other sector projects. Together these would push
Ugandas external debt to 33bn US$. Ushs 6 trillion of the 24 trillion budgets has been
allocated for debt repayment and servicing. This situation puts Uganda among the highly
indebted countries with a worrying external debt raising concerns on the countrys
capacity to pay back and we are worried that we are going to be trapped in debt.
We caution Government against going back to the 80s and 90s where Government capacity
to generate its own resources and determine its own destiny was constrained by inability to
finance the budget adequately. Considering that governments total revenue from both taxes
and non-tax revenue is projected to be Ush11.1trillion, it means, government will be able to
fund next years budget by only 44.5% and the remaining 55.5% of the budget money will
come from external and domestic borrowing from the private sector
Government needs to critically examine and make hard decisions with the view to expand the
current tax: GDP ratio from the current 11%. This can be through strengthening tax
administration; curbing illicit financial flows and imposing other revenue generation measures
such as road tolls, Environmental Tax and Graduated Tax as stipulated in the CSO taxation
proposals submitted to Government in April 2015.
Budget absorption still remains a big challenge undermining service delivery. The Auditor
General FY 2013/14 Report recorded that Ushs 9.4bn was returned by different Government
agencies to the treasury. Furthermore, in the same period various government Projects also
failed to absorb Ushs 217bn. With a record Ushs 24 trillion, Civil Society hope is that
Government institutes punitive measures to address the constraints undermining utilization
of public funds. For example punitive measures against Accounting Officers that return funds
to the Treasury for reasons such as delayed accountability, inadequate planning amongst
others need to be put in place
Lastly CSOs under CSBAG urge all Ugandans to take time on 11th June 2015 to listen, take
note of the approved national budget priorities and estimates and monitor their
implementation in FY 2015/16.

OUR BUDGET | OUR RESPONSIBILITY

For more information please contact:

Mukunda Julius
Coordinator
Civil Society Budget Advocacy Group
(CSBAG)
P O BOX 660, Kampala |
Tel: + (256) 041 4 286063
Web: www.csbag.org
Email: csbag@csbag.org

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Dorothy Baziiwe
Executive Director
Shelter and Settlements
Alternatives: Uganda Human
Settlements Network (SSA:UHSNET)
P.O.BOX 27445, Kampala, Uganda
Web: www.ssauganda.org Email:
ssa.uganda@gmail.com

Stella Lutalo
Country Coordinator
Participatory Ecological Land Use
Management (PELUM)
P.O BOX Plot 155, Kira Road,Kampala
Web: www.pelumuganda.org
Email:pelumuganda@pelumuganda.org

We the Undersigned:
The Civil Society Budget Advocacy Group (CSBAG) since its launch in 2004 has made major leaps towards
Ensuring that the Ugandan budget making process is more participatory, transparent and citizens
concerns are prioritized in government budget allocations and implementation. Our membership is
comprised of the following 72 institutions:
Action Aid International Uganda | (AA IU)
Website: www.actionaid.org/Uganda
ABICWA
District: Abim
African Centre for Trade and Development
(ACTADE)
Website: www.actade.org
African Centre for Treatment and
Rehabilitation of Torture Victims (ACTV)
Website: www.actvuganda.org
Advance Afrika
Advocates Coalition for Development and
Environment (ACODE)
Website: www.acode-u.org
Anti-Corruption Coalition Uganda (ACCU)
www.accu.or.ug
Agago NGO Forum
District: Agago
Action Group for Health Human Rights
and HIV/AIDS (AGHA)
Website: www.agha.or.ug
African Youth Development Link (AYDL)
Website: www.aydl.org
African Women's Economic Policy
Network (AWEPON)
Website: www.awepon.net
Ashay Razyn foundation limited
Web: www.arfuganda.org
Awotid Uganda
District: Abim
Caritas Kampala
Website: www.caritaskampala.org
Center for African Policy
Website:
Center for Domestic Violence (CEDOVIP)
Website www.preventgbvafrica.org
Center for Governance, Peace and
Security
Website: www.gasuganda.com
Center for Policy Research and
Development Initiatives
Website: www.cepordi.org
Centre for Women in Governance
(CEWIGO)
Website: www.cewigo.org
Community Restoration Imitative Project
Website:
Development Network of Indigenous
Voluntary Associations (DENIVA)
Website: www.deniva.or.ug
Development Research and Training
(DRT)
Website: www.drt-ug.org
Development Watch ( DEMWatch)
Deutsche Stiftung WeltbevlkerungUganda
Website: www.dsw-online.org
Eastern and Southern Africa Small Scale
Farmers Forum (ESAFF- Uganda)
Website: www.esaff.org
Environmental Alert (EA)
Website: www.envalert.org
Food Rights Alliance (FRA)

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Web: www.fra.ug
Forum for Women in Democracy
(FOWODE)
Website: (www.fowode.org)
Forum for Kalongo Parish Women
Association
District: Agago
FOWODE Young Leaders Alumni
Association (FYLAA)
Website: www.fylaa.org
Hope after Rape
Website: www.har.interconnection.org
Hunger Fighters Uganda
Website: www.hungerfightersuganda.org
Human Rights Network Uganda
(HURINET- U)
Website: www.hurinet.or.ug
Initiative for Social and Economic Rights Uganda
Website: www.iser-uganda.org
Institute of social transformation (IST)
Website: www.ist-tft.org
Innovations for poverty action (IPA)
website: www.poverty-action.org
Isis-WICCE
Website: www.isis.or.ug
Jenga Afrika
Website: www.jengaafrika.org
Muti Community Based Development
Initiative
District: Abim
National Association of Women
Organisations in Uganda (NAWOU)
Website: www.nawouganda.org
National Forum for People Living with
HIV/AIDS Network in Uganda
(NAFOPHANU)
Website: www.nafophanu.org
National Union of Women with Disabilities
of Uganda (NUWODU)
National Union of Disabled Persons
Uganda (NUDIPU)
www: www.nudipu.org
Nen Anyim Community Based Group
District: Agago
Participatory Ecological Land Use
Management (PELUM)
Website: www.pelumuganda.org
Patongo Counseling Community Outreach
District: Agago
Passion for community development
organization
District: Agago
People Living with HIV/AIDS Network
District: Abim
Platform for Citizen Participation and
Accountability (PLACA)
Website: www.placaug.org
Regional Associates for Community
Initiatives (RACI)
Website: www.raciug.org
Spinal Injuries Association- Uganda
District: Kampala

Shelter and Settlements AlternativesUganda

Website: www.ssauganda.org
Southern and Eastern African Trade
Information and Negotiations Institute
(SEATINI-U)
Website: www.seatiniuganda.org
Real Agency for Community Development
Website: www.racd-uganda.org
Rwenzori Consortium for Civil competence
(RWECO)
Website: www.rweco.org
Toro Development Network-Toro-Dev
Website: www.torodev.kabissa.org
Uganda Debt Network (UDN)
Website: www.udn.or.ug
Uganda National Health Consumers
Organization (UNHCO)
Web: www.unhco.or.ug
Uganda National NGO Forum.
Website: www.ngoforum.or.ug
Uganda Network of AIDS Service
Organization (UNASO)
Website: www.unaso.org
Uganda Parliamentary Forum on Youth
Affairs
Website:
Uganda Road Sector Support Initiative
(URSSI)
Website: www.ugandaroadsector.org
Uganda Women Entrepreneurs
Association Limited
Web: www.uweal.co.ug
Uganda Joint Christian Council (UJCC)
www.ujcc.co.ug
Uganda Womens Network (UWONET)
Website: www.uwonet.or.ug
Uganda Youth Network (UYONET)
Web: www.info.or.ug
Volunteer Efforts for Development
Concerns (VEDCO)
Website: www.vedcouganda.org
Water Aid Uganda
Website: www.wateraid.org/uganda
Wagwoke WUnu
District: Agago
Women and Girl Child Development
Association
Website: www.wegcda.org
Widows and Orphans Support
Organisation
District: Ag

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