Budget Bonanza for the UPDF: A possible fresh $100m Loan for Classified Expenditure(!!)

Again, the state is spending recklessly, as the state is already not fiscal responsible or planning to behave like that. Instead of living within the means of the state. They are continuing to loan from either international sources or local ones, to balance the budgets. This is nearly impossible, as the National Resistance Movement and their Supplementary Budgets are breaking the bank.

What is really worse about this is that this goes to secret accounts and secret operations, which the state doesn’t trust to explain or even be transparent about. These funds are supposed to go to a Classified Division of the Uganda People’s Defence Force, the Permanent Secretary and Ministry of the Defence and Veteran Affairs are allowed to spend it, as they see fit. But how is that looking and where is these loans going?

The supposed motion says this:

i. To improve the capability of Uganda’s defence and security forces ; and

ii. To enhance Uganda’s defence and security infrastructure” (P: 3, 2019).

What does that mean and where does that go? It could everything and nothing, it could be more ammunition, it could be paying off rebels in the Democratic Republic of Congo. Who knows, right? Could be training of rebels in Kisoro or anywhere else, as the UPDF and the NRM see fit. That is why the funds are confidential and whatever the UPDF and President see needed is these manners. Because, I have a hard time believing these sorts of funds are spent without the knowledge or acceptance from the high above or within the chambers of the State House.

It should be noted that defence classified expenditure has been growing over time – from UGX 347 billion in FY 20l7/18 to UGX 640 billion earlier on approved for FY 2018/19. This additional borrowing will see the budget for classified expenditure grow to UGX 1020 billion representing 34% of the total defence budget for FY 2018/ 19 (incl. now proposed borrowing)” (P: 3, 2019)

The project will be implemented by the Ministry of Defence and Veteran Affairs, with its Permanent Secretary as the Accounting Officer responsible for managing the supply contract” (P: 4, 2019).

Consequently, this will see the budget deficit grow by additional UGX resulting in growth in Net Domestic Financing requirement to UGX 2,163 billion in the FY 2018/19 from UGX 1,783 billion earlier on approved by Parliament. In addition, the domestic interest cost will increase by approximately UGX 39 billion from the 2,132 billion approved for FY 2018/ 19 to UGX 2,171 billion” (P: 4, 2019).

Here is some more of the information from the Ministry of Defence and Veteran Affairs. Still, it doesn’t say much. Except the levels of debt the state will have, how much interest the state will pay as it follows this possible loans. The rest of the Report, states that the Committee sees it fit to get a Bill on the Loan. Not just a motion to explain more. That should be needed. Because, the Ministry and Minister cannot have been specific on what they plan to spend the loans on. Whatever projects or where ever that might be.

It is not just the Members of Parliament (MPs) who should worry about this, but the citizens as the state are piling up loans for various of projects and even some like this whose a total confidential expenditure. It could be spend on whatever the UPDF or State House see necessary. That can be awful lot. Peace.

Reference:

REPORT OF THE COMMITTEE ON NATIONAL ECONOMY ON THE PROPOSAL BY GOVERNMENT TO BORROWING USD 100 MILLION (APPROXIMATELY UGX 38O BILLION FROM THE DOMESTIC MARKET TO FINANCE CLASSIFIED EXPENDITURE UNDER MINISTRY OF’ DEFENCE AND VETERAN AFFAIRS FOR FY 2018/19, March 2019

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