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COVID-19 Impact; Govt to Reduce Expenditure Under NDP III

KAMPALA: Government will reduce expenditure under the National Development Plan (NDP) III due to the negative impact of Covid-19, according to Finance State Minister for Planning. 
Speaking during the launch of dialogues to enhance gender and equity programming under NDP III, Mr Amos Lugoloobi, the Planning state minister, said it was important to revise public expenditure due to expected shortfall in revenue collection.
The NDP III is the third in a series of six National Development Plan that seeks to guide Uganda into attaining an average of 7 per cent growth rate over the period with the potential to create 520,000 jobs annually.
The review, Mr Lugoloobi said, will realign expenditure to feed priority sectors while cutting budgets for other sectors.
“Due to Covid-19 there has been reduction in domestic revenue collection and a lot of resources have been borrowed to meet the public expenditure in health sector,” he said, noting that under the NDP III government had planned to Shs23 trillion but this will be reduced to Shs19 trillion.
Under NDP III, government expects to attain $1,198 GDP per capita, expand industrial capacity, consolidate and increase stock and quality of productive infrastructure, enhance and promote sustainable exploitation of natural resources and support private sector development to boost employment.
However, it comes at a time when the country is battling Covid-19 related disruptions that have impacted social and economic prospects.
Mr Lugoloobi also noted that whereas Uganda had progressed well in ensuring gender equity, the progress had slowed down over the last six years from 57 per cent in 2016/17 to 66 per cent in the 2020/21 financial year.
“Compliance assessments over the last six financial years show slow improvements with national average increasing from 57 per cent in 2016/17 to 66 per cent,” he said.
Under the Public Finance Management Act (2015), it is required that ministries, departments agencies and local government address gender and equity issue during formulation of budget framework papers and ministerial policy statements.
**monitor
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