The National Budget Process explained at RC Kampala Central

In an engaging ‘paper-point’ presentation, Rtn Patrick explained the underlying legal framework that governs the budget formulation process as well as the extensive consultative process that brings together Ministries, Spending Agencies, Sector Working groups, Donors and Civil Society groups.

He highlighted the key challenges of the previous fiscal year which included;

-          A sharp rise in commercial bank lending rates with the inter-bank rate averaging about 28 percent

-          Slowdown in economic growth from 7% to 3.2%

-          Macroeconomic instability in form of high inflation, exchange rate fluctuations

-          Low production and productivity of key sectors such as Agriculture,  Trade, Tourism and Industry

Rtn Patrick also revealed that the total expenditure for Financial Year 2012/13 is projected at Shs. 11,398.42 billion which is broken down as follows;

-          Central Government Votes – Ushs. 7,732.46 billion (67.8%)

-          Local Government Votes – Ushs. 1,855.53 billion (16.3%)

-          Statutory Expenditures – Ushs.  1,810.38 billion (15.9%)

Summary timeline for the Budget Process