Budget director explains cuts

Budget director explains cuts
Finance minister Matia Kasaija with the Budget Box

The Acting Director of Budget, Ishmael Magona, has warned that only highly prioritised sectors will be funded in the new financial year to avoid dependence on debts

This comes at a time when several government MDAs have seen budget cuts.

The director budget says, the discretionary expenditure is very small hence the cuts.

The 2024/25 financial budget is projected at Shs58.34 trillion, increasing from the running budget of Shs52.73 trillion.

Much of this is expected to go to debt servicing and interest payment, subsequently affecting the discretionary expenditure.

As a result, several entities have seen their budgets cut by a significant percentage. "We need to use the money we have cautiously. We also need to avoid debt," said Magona.

Leading entities that will be funded include, peace and security, road maintenance, meter gauge and standard gauge railway, knowledge economy, and International commitments.

The Acting director budget says they are now putting emphasis on monitoring and evaluation system to ensure that the allocated funds used for intended purposes.

Magona said: "We want to strengthen Monitoring and evaluation systems. So if you are given Money you must deliver. You must prioritize core mandate of the institution."

Magona says government will now leverage the already existing infrastructure like roads, electricity among others to generate wealth through value addition.

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