Finance Minister Assures MPs on Alignment of Budget with NDP IV

Kp Reporter·business·

Share
Finance Minister Assures MPs on Alignment of Budget with NDP IV

The Minister of State for Finance (General Duties), Henry Musasizi, has reassured legislators on the Budget Committee that the proposed budget for the...

The Minister of State for Finance (General Duties), Henry Musasizi, has reassured legislators on the Budget Committee that the proposed budget for the 2025/2026 financial year aligns with the new National Development Plan IV (NDP IV).

Speaking before the Committee on Tuesday, January 28, 2025, Musasizi explained that the allocations in the proposed National Budget Framework Paper (BFP) were based on the 18 NDP IV programmes and their respective Programme Implementation Action Plans (PIAPs). He also noted that the assessment of the Budget Framework Paper for the 2025/2026 financial year is ongoing, and he will submit a certificate of compliance as required by the Public Finance Management Act.

This statement followed concerns raised by some MPs, who pointed out inconsistencies between the figures proposed in the Budget Framework Paper and those in the NDP IV.

In response, the Permanent Secretary and Secretary to the Treasury (PSST), Ramathan Ggoobi, clarified that the NDP IV priorities were fully reflected in the BFP. He outlined key priorities under the NDP IV, including affordable access to credit, road maintenance, peace and security, the construction of the East Africa Crude Oil Pipeline, and the fight against corruption.

Ggoobi added, “If you are looking at consistency in terms of money, that is where we are saying it is still premature. The indicative figures were given to plan for the priorities, but detailed estimates will be provided later, where we will specify the budgets we are able to implement.”

However, Wilfred Niwagaba (Ndorwa County West) challenged the PSST’s position, referencing Section 9(3) of the Public Finance Management Act, which requires the Budget Framework Paper to be consistent with the National Development Plan and Charter for Fiscal Responsibility.

Deputy Chairperson of the Committee, Remigio Achia, commended the alignment of priorities between the BFP and NDP IV but stressed the need for consistency in the funds allocated to these priorities.

Ggoobi responded by acknowledging that the 2025/2026 budget would be the first to be implemented under the new NDP IV. He assured MPs that the final estimates for the budget will be made in accordance with the NDP IV, emphasizing the need to ensure that resources are allocated appropriately to meet the Plan’s goals.

“We want to ask ourselves if these are the things we committed to doing. Once we answer that question, the next will be if we are just giving them lip service or if we are putting the needed resources. This question can only be answered when we finalize the resource envelope and bring the estimates,” Ggoobi concluded.

Related Articles

More stories you may want to read next.