Cash crisis: State House, Electoral Commission prioritized as Gov't scraps allowances

According to an internal memo from the office of the Director budget in the Ministry of Finance, it directed that payment for November and December should be made to five areas.

The five included State House, Ministry of Defence, Payments of wages, pension and gratuity, statutory obligations under Vote 130 and the Electoral Commission.

This decision was attributed on the current cash position. Members of Parliament on the cash budget committee said that the government decisions clearly show that the government does not care about the economy given the COVID-19 era but rather areas where the executive has control.

"How about the other sectors of the economy? Because we're in the rainy season. The roads in the countryside are going to be impassable and you're not prioritizing them, you have a lot of ongoing contract in energy and other sectors so you're going to pay for idle time," Muwanga Kibumbi, one of the MPs on the committee said.

From the time COVID-19 struck the economy about seven months ago, different businesses have been asking for a stimulus package but government's decision on COVID-19 recovery of the economy focused on postponing taxes and now with the current cash flow and prioritized areas, what is the impact on non prioritized areas like industry, agriculture, among others?

"Normally any sensible person can stifle many other areas but health can not be stifled really,"

" As an MP if I come out and tell you these would have been the prioritized sectors, who will listen to me? After all some of the members here who would have talked about it are now in campaigns and some fear to go against government." MP Luttamaguzi asked.

Uganda's revenue collection has significantly fallen due to the Coronavirus-induced lockdown thus affecting cash flow.

Additional reporting by Jonah Kirabo