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.
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
The Ministerial Policy Statement on the Presidential Affairs for the Financial Year of 2017/2018. These are clear of the priorities in the Republic. The Republic are putting as much funds into the State House, which is Ushs. 245 bn and under the Office of Prime Minister in the Development Expenditure Ushs. 245 bn. So there are certain aspects of government priority that isn’t healthy, as both the Office of the President and the State House get Ush. 300 bn in total. But take look at the beautiful priorities of the National Resistance Movement!
Office of the President:
“In the FY 2017/18, the total proposed allocation to Office of the President is Ushs 54.268 bn, reflecting a 2.8% increment against the FY 2016/17 approved budget” (GoU, P: 3,2017).
“The Committee noted that four (4) districts of Kagadi, Kakumiro, Omoro and Rubanda came in place in FY 2016/2017. In the FY 2017/2018, Namisindwa, Pakwach, Butebo, Rukiga, Kyotera and Bunyangabo will come into operation. The Committee however noted that additional cost implication of Ushs. 2.63 bn to facilitate 10 RDCs is not within the MTEF ceiling of Office of the President in FY 2017/18. The Committee further observed that facilitation for RDCs to conduct effective monitoring of Government programs is underfunded to the tune of Ushs. 3.0 bn” (GoU, P: 4, 2017)
Internal Security Organization:
“The Committee expressed concern without substantial facilitation to Internal Security Organisation, terrorists can successfully accomplish their interests of terrorism and insurgency activities and other forms of organized crimes including politically motivated ones without detection. This has in most cases resulted substantial spending in managing such acts” (GoU, P: 9, 2017).
“In the FY 2017/18, the total proposed allocation to Vote 002 is Ushs 245.567 bn, reflecting a 4.6% reduction against the FY 2016/17 approved budget” (GoU, P: 12, 2017).
External Security Organization:
“In the FY 2017/18, the total proposed allocation to Vote 159 is Ushs 31.343 bn, reflecting an increment of 16.4°10 against the FY 2016/17 approved budget largely on account of a 10 % budget cut on consumptive items” (GoU, P: 18, 2017).
Office of the Prime Minister:
“The Committee noted that the policy on refugees in Uganda is lacking. The Committee was informed that Office of the Prime Minister is in the process of conducting consultations with stakeholders to validate the Draft Refugee Policy. The Committee observes that in absence of the refugee policy, citizens are not aware of the right places and right engagement for refuges. The Committee undertook on-spot assessment of communities hosting refugees in Adjumani, Yumbe and Kiryandongo Districts and noted that in some instances, refugees have too much freedom and are more privileged at the expense of nationals” (GoU, P: 29, 2017).
“10.3.5 Lack of sustainable interventions for Disaster Preparedness
The Committee notes that Office of the Prime Minister has not made any efforts in putting in place sustainable interventions for Disaster Preparedness. In its oversight role, the Committee undertook a field visit to Nakasongola District, which is among the drought prone areas in the Country. The Committee was informed that during peak drought season, about 30 heads of cattle died per day and that the drought season occurs year in year out. The most painful thing to note is that Nakasongola District is surrounded by Lake Kyoga” (GoU, P: 29, 2017).
“11.1 VOTE 001 – OFFICE OF THE PRESIDENT
Budget Item UShs. (Bn)
(i) Recurrent Expenditure 118,929,091,000
(ii) Development Expenditure 5,216,904,000” (GoU, P: 32, 2017).
“11.3 VOTE 003 – OFFICE OF THE PRIME MINISTER
Budget Item (i) Recurrent Expenditure Ushs. 64,786,412,000 bn.
(ii) Development Expenditure Ushs. 245,404,928,000 bn” (GoU, P: 32, 2017)
There are proof of enough lacking resources, lacking policies, even coming from the Office of the Prime Minister, that is the Ministry under Prime Minister Dr. Ruhakana Rugunda, the trusted appointee that was sought to fill the shoes of Amama Mbabazi. Therefore, the government are clearly not planning or having funds to keep the refugees in Uganda. There assistance is coming from donors, the Multi-National Organization and Non-Governmental Organization who apply needed help to the fleeing refugees in Northern Uganda.
We can also see the similar use of Development expenditure under the Office of the Prime Minister and the State House, which is Ushs. 245 bn. This is proving the misuse of funds on the State House, as the development expenditure should be more important than expensive water and all other projects under the State House. As well, as keeping the upkeep of the President. Even as under the Office of the President are alone getting Ushs. 118 bn. Therefore, the whole Presidential Affairs are really not a cheap ride for the Financial Year of 2017/2018.
The are really lot of spending on the President and Prime Minister’s portfolios, but still missing key policies to implement the spending. That is maybe why the State House needed supplementary budget before even getting the vote of the Ministerial Statement. If that isn’t bad planning or even misuse of State Reserves, than who knows! Peace.
Government of Uganda (GoU)- ‘SUMMARY REPORT OF THE COMMITTEE ON PRESIDENTIAL AFFAIRS ON THE MINISTERIAL POLICY STATEMENTS FOR FY 2017/18’ (May 2017)
The original budget for the State House in Uganda in the budget year of 2017/2018 was the stunning Shs. 245.567 billion shillings. That should have been more than sufficient, even should cover for more than utilities and all the Presidential Advisors hired by the President Yoweri Kaguta Museveni. Still, this week, they needed to add the bill and use more monies in the State House. The 245 billion shillings was not enough for one-year, they need more!
So in Parliament yesterday:
“Parliament’s budget committee has raised concern over the Shs 23.1 billion supplementary budget request from State House – less than two months to the end of 2016/2017” (Radiocity 97FM, 18.05.2017). That means that the State House plans to use Shs. 268,667 billion shillings. This now is for other than usual staff and for the bloated arrogance of a state organization like the Entebbe State House. Certainly, Presidential Spokesperson Don Wanyama and Director of Uganda Media Centre Ofwono Opondo will defend this. Since they are eating their envelopes from these budget posts.
However, the use of the supplementary budget should get under question, as the levels of futile spending should be under the loop and not just accepted. Just as the NBS Television reported: “State House asks for supplementary budget of UGX23bn; UGX365m for water bills i.e. at least UGX1m is spent on water bills day” (NBS Television, 17.05.2017).
That a county and a republic where most struggle to feed themselves, the President and his court has the audacity to spend Shs. 1 million a day! The ordinary Ugandans cannot nearly afford sugar that has hit the skyrocketed prices of Shs. 7,500 shillings; t. As their misuse of funds goes into the insane.
That the 30 years of ruling and the National Resistance Movement (NRM), proves that the old man with the hat, is too used to sponge of the state reserves and use it as his own pocket. The clear evident is in the budget and supplementary budget for the State House. Which entails all sort of ministerial works, which is ironic, in the sense that bloated cabinet should have ministries and agencies to fix the other outlaying issues and government work. Instead, it all is spend to through the roof of Entebbe State and the Okello House.
It surely must be genuine and special water in the faucets of the State House. Since the prices and the budget proves the massive spending on it. It must be the clearest and most luxurious water installation in the whole republic. Surely, the water is not bleak; it is like party coming into the taps. It must be so clean, that the WASH agents in other parts of Uganda, so they could wish they had it for the ones in need.
President Museveni, hope you enjoy your expensive water and do not buy any brew. Since the shs. 1 million water per day must really be the best! The smartest would be to tap, bottled and sold nationwide as Okello House water; therefore, you could spread the news about the fantastic State House water. This is why it cost so much. That is just one part of the puzzle, which is the meagre Shs. 365 million, the rest is Shs. 268 billion shillings. This is spend on all the other parts of the State House! That shows the disregard for state institutions, as one of the key beneficiary budget posts, are the State House, where the services comes directly from. Peace.
I am sure, that I am not the first to add my best of list of the Ministerial Policy Statement of Financial Year 2017/2018, but still the Presidency pledges are showing how insane it is. The numbers themselves says a lot about the state of affairs. This is just some of the pledges, not the whole picture. But it states a lot, and there are one surprise that enters into Political Affairs, as his payday are still coming this Financial Year.
The budget for the State House in the FY 2017/2018 are 245.567 billion shillings. Office of the President is FY 2017/2018 are 54.268 billions shillings. This shows how much the President plans to use on himself and his loyal cronies. And talking about them. Let me show you some of the best paid people in the State House and under the Office of the President!
The highest earners under of the Office of the President (Monthly Salary in Uganda Shillings):
Musoke Kintu, Senior Presidential Advisor, ush 11,180,000.
John Mitala, Head/Public Secretary Cabinet, ush 17,600,000.
Francis Ojur, Senior Presidential Advisor, ush. 11,180,000.
Dr. Beatrice Wabudeya, Senior Presidential Adivsor, 11,180,000.
Kaliisa Kabagambe, Senior Presidential Advisor, 15,000,000.
Henry Muganwa Kajura, Senior Presidential Advisor, 15,000,000.
Venand Nantulya, Senior Presidential Advisor, 15,000,000.
Amooti S.T. Businge, Permanent Secretary, 15,400,000.
State House Staff (Monthly Salary in Uganda shillings):
Patrick Rusongoza, Senior Presidential Secretary/Economic Affairs, 15,000,000.
Badru Kiggundu, Senior Presidential Secretary/Political Affairs, 15,000,000.
Emmanuel Mutebi, Captain Presidential Jet, 20,250,000.
Gadah Eldam Nagwa, Senior Presidential Secretary/Political Affairs, 14,000,000.
Molly Kamukama, Principal Private Secretary, 15,400,000.
Patrick Nyakatuura Rwakijuma, Chief Engineer, 20,250,000.
Charles Lwanga Lutaaya, Captain Presidential Jet, 17,609,000.
Anule Aloysius Edema, First Officer Presidential Jet, 20,250,000.
Hussain Waiswa, First Officer Helicopter, 17,609,169.
Charles Okidi, First Officer Helicopter, 17,609,169.
Swamadu Bogere, Senior Flight Eng. Technician (helicopter), 17,609,196.
Lucy Nakyobe, State House Controller, 15,400,000.
Kivumbi M. Lutaaya, Principal Private Secretary, 15,400,000.
“The Office appreciated the recommendation of the Committee to provide the required funding to effect the appointment of the new 18 Presidential Advisors on Ministerial terms. However, I wish to clarify that the funding to effect the appointment of the 18 new Presidential Advisors was not UShs. 5.931bn, but, UShs. 18.32bn. The Office followed up the matter with MoFPED, but no positive response was received” (P: 179).
We are going interesting times ahead, wonder what else is coming, but the one thing I did not put, but was interesting, was the amount of cars, buses and other vehicles bought by the State House. Seems more like they will turn into used-cars salesmen in a few years time. As the car-park of the State House is growing old, while the potholes of the Republic is growing. Therefore, the pickups surely need maintenance to survive the roads. But, hey that is the Uganda in the vision of the old man with the hat. Peace.
MINISTERIAL POLICY STATEMENT – THE PRESIDENCY for FY 2017/2018 – Presented to Parliament for Debate on the Budget Estimates for the Financial Year 2017/2018
WASHINGTON D.C., United States of America, April 6, 2016 – A team from the International Monetary Fund (IMF) led by Roger Nord, IMF Mission Chief and Deputy Director of the African Department, visited Kampala from March 21 to April 6, to conduct the sixth review of Uganda’s economic program supported by the Policy Support Instrument (PSI).
At the end of the mission, Mr. Nord issued the following statement:
“In a complex global, regional, and domestic environment, affected by election-related uncertainties, Uganda’s economy continued to perform well. Economic growth is expected to reach 5 percent in the current fiscal year and accelerate to 5.5 percent in FY2016/17, supported by the scaling up of infrastructure investment. Following a sharp depreciation of the shilling, inflation increased, with core inflation reaching 7.6 percent in December 2015, though it has since then decelerated to 6.9 percent.
“Performance under the PSI has been mixed. There has been progress on increasing tax revenue, strengthening international reserves, extending the Treasury Single Account to local governments, and establishing public investment management guidelines. The decisive monetary policy response, in the context of appropriate exchange rate flexibility, contributed to the stabilization of the shilling and successfully curbed inflation expectations. However, the end-December 2015 overall deficit target was not met, poverty reducing expenditures were below target, and some structural reforms suffered delays.
“The mission commends the authorities for the steadfast implementation of fiscal policy in a complex electoral environment. Revenue over-performed through end-December 2015 and expenditure pressures were reasonably well controlled. While some fiscal tightening had been envisaged in late 2015 in the face of significant exchange rate pressures, the economy subsequently stabilized more rapidly than expected, leading the authorities to revert to the original budget targets. However, there were some renewed fiscal pressures in early 2016, including a slowdown in revenue and some additional spending. The mission welcomes that the supplementary budget currently before parliament aims at minimizing year-end slippages. The mission encourages the authorities to strengthen efforts to boost taxpayer compliance to compensate for the revenue shortfall.
“The mission welcomes the 2016/17 budget currently before parliament, which envisages a continued scaling-up of infrastructure investment while boosting domestic revenue by 0.5 percent of GDP, in line with the objective to raise Uganda’s revenue performance to levels observed in regional and other peers. The mission encourages the authorities to continue building capacity and controls to manage large public investment projects. It will also be important to avoid within-year reallocations from public investment to less productive government spending.
“The mission welcomes the decision by the Bank of Uganda (BOU) to lower the central bank rate, consistent with the forecast of core inflation returning to its medium-term target. The mission commends the BOU for its effective communication strategy, which contributed to well-anchored inflation expectations, reflected in sharply falling yields in recent weeks. The appropriate easing of monetary policy should provide a welcome boost to private sector credit growth and support economic activity.
“The mission welcomes the approval of the amendments to the Financial Institutions Act, expected to foster credit expansion and deepen the financial sector. The mission encourages the authorities to expedite the adoption of appropriate regulations to implement the new Public Finance Management Act in line with international best practice. The mission also urges the authorities to complete the reconciliation and validation of the stock of domestic payment arrears and take all necessary measures to avoid their recurrence.
“The mission is reassured by ongoing efforts to ensure Uganda’s prompt exit from the Financial Action Task-Force’s list of jurisdictions with strategic deficiencies in the legal framework for combating money laundering and the financing of terrorism (AML/CFT). The mission urges the authorities to take the necessary steps to facilitate the prompt exit, including by passing the amendments to the Anti-Money Laundering Act and the Insurance Act before May 2016.
“The mission met with Hon. Mr. Matia Kasaija, Minister of Finance, Planning and Economic Development; Professor Emmanuel Tumusiime-Mutebile, Governor of the Bank of Uganda; Mr. Keith Muhakanizi, Permanent Secretary/Secretary of Treasury; and other senior government officials, and representatives from the business, and international communities. The mission thanks all counterparts for their collaboration.
“IMF Executive Board consideration of the sixth review of the PSI-supported program is expected by end-June 2016.”
 The PSI is an instrument of the IMF designed for countries that do not need balance of payments financial support. The PSI helps countries design effective economic programs that, once approved by the IMF’s Executive Board, signal to donors, multilateral development banks, and markets the Fund’s endorsement of a member’s policies (seehttp://www.imf.org/external/np/exr/facts/psi.htm). Details on Uganda’s current PSI are available at imf.org/uganda.