Why 2021/22 Budget is Programme, not Sector-based

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Unlike previous budgets where allocation of resources was sector or Ministry-based, determining resources that go to sectors for implementation of Government programmes, the 2021/22 Financial Year budget, 44.7 trillion shillings, is programme-based.

Allocations are no longer sector-based, but programme-based, putting together one goal by several sectors.

For example, Human Capital Development, which took the biggest portion of the budget, 7.7 trillion shillings accounting for 17% of the budget, combines Health, Education and Water sectors.

This was followed by peace, security and good governance which combines the Office of the President, Prime Minister, Internal Affairs and Gender, taking 6.9 trillion shillings, accounting for 15.6% of the total budget.

Speaking at the post budget e-conference in Kampala on Tuesday, the Acting Permanent Secretary in the Ministry of Finance, Patrick Ocailap explained that there were various sectors doing more less the same activity without coordination.

In doing this, Ocailap said, the desire to transform the economy was not being attained.

He, for example, said that there was money budgeted for National Agricultural Research Organisation (NARO) research on seeds yet NAGRIC also carried out research on the same, and money was being allocated to it as well.

“You find that NAGRIC was researching on high level production of animals and also production of other agricultural related issues.

All these (NARO and NAGRIC) were producing scientific information (High quality seeds, high quality bleeds of animals) but somehow, the linkage in the sector to deliver on the transformation of livelihood at the household level was difficult to come by because they were operating each of them in silos delivering standard mandate without a coordination that would bring a totality of development as required for a transformative approach to livelihood at household level,” Ocailap explained.

Adding: “On recognition of that (during formulation of NDP III), it was then agreed that we put together all these sectors with a common objective of transforming say the lives of people under the agro industrialization anchor, include productivity and agro industrialization. This links up the various players in the sectors to truly work together and create the change that we want.”

The programme approach, he said, is a holistic way in which Government wants to operate and deliver on a common programme for transformation of society.

The Bank of Uganda Deputy Governor, Michael Atingi Ego welcomed the programme-based approach, saying it will be “helpful.”

“How do you ensure that there is coordination in delivery of some objectives? I think a programme based approach in my view tries to identify where all the weaknesses are,” he said.

Julius Mukunda, the Executive Director of Civil Society Budget Advocacy Group (CSBAG) said the programme- based approach will help to reduce on “duplication.”

“Budgeting in isolation is wastage of resources. One of the things you realize is that a Ministry is for example budgeting for industrial parks, KCCA wants to do one, then you have Uganda Investment Authority (UIA), and you are wondering, are we in different countries?” Mukunda posed.

Adding: “So, it (programme -based approach) really reduces on duplication. It should reduce on duplication so that by the time you are going to implement an activity, you need to understand where that activity fits in a Government programme.”


Source – ChimpReports

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