Parliament has approved a supplementary budget of UGX1.087 trillion to facilitate the COVID-19 response by the Ministry of Health, Ministry of Trade and other government entities.
The approval followed a recommendation of the Budget Committee Chaired by Amos Lugoloobi, in line with a request which was tabled before parliament on June 16. It also comes just four days to the end of the financial year 2019-2020, whose total budget stood at 40.48 trillion.
Health ministry – UGX89b
The Ministry of Health will use UGX89 billion of the total approval to fund requirements for dealing with the COVID-19 pandemic. This includes Procurement of facemasks budgeted at 33 billion Shillings as part of the response to control the spread of the pandemic as the country eases the lockdown. Each mask will cost about UGX 2,400.
The Ministry will also use UGX2.3 billion for transport and allowances for the distribution of face masks, UGX37 billion for the procurement of test kits and laboratory consumables, UGX6 billion for tents, UGX4 billion for support to Local Governments for District-based Surveillance activities in the 48 border districts and other districts with COVID-19 cases and UGX7.04 billion for re-modelling of Intensive Care Units (ICUs).
Lugoloobi reported that the Ministry had already exhausted the 3 per cent statutory limit provided under the Public Finance Management Act. However, this is the second supplementary budget to the Ministry after the initial allocation of 119 billion Shillings which was released after the first outbreak of the disease.
He told Parliament that because of the critical care treatment and high oxygen requirement when treating COVID-19 patients, 145 ICU beds including Ventilators, Patient monitors, three oxygen plants and oxygen therapy apparatus have been procured and will be installed in the Regional Referral Hospitals.
The Ministry of Health has assessed the Regional Referral Hospitals and found that some have functional ICUs but with limited capacity and 9 do not have ICUs but have identified space that can temporarily be converted into ICUs to manage the COVID-19 patients,” Lugoloobi told Parliament.
He said that to ensure that this equipment is utilized fully even after COVID-19, there is urgent need to remodel the existing space or construct new ICUs in some Regional Referral Hospitals so that they meet the recommended standards. Lugoloobi, however, said that an additional UGX14.44 billion will be required to construct new ICUs in the remaining regional referrals.
OPM – UGX45b
The Office of the Prime Minister will also take a share of UGX45 billion to address the impact of the rising water levels and floods with support for social services infrastructure.
Finance ministry – UGX455b
The Ministry of Finance will have an allocation of UGX455.18 billion as a transfer to the Uganda Development Bank (UDB) to Support the Private Sector that has adversely been affected by the COVIDd-19 pandemic, while the Microfinance Support Centre which will get 50 billion Shillings for provision of affordable credit to mitigate the negative impacts of COVID-19 and ensure continuity of the business activities severely affected.
Agriculture ministry – UGX10b
Meanwhile, UGX10 billion has been approved for Ministry of Agriculture to enhance households’ capacity for food security including the provision of inputs, UGX100 billion for the Uganda Development Corporation (UDC) to invest in businesses that will be adversely affected by the COVID-19 pandemic, UGX17.18 billion for the Ministry of Science, Technology and Innovation to support scientists and innovators in COVID-19 interventions and UGX45.67 billion will go to Uganda Revenue Authority to facilitate the implementation of digital tax stamps and others.
The Prisons Authority also has an allocation of 10.78 billion Shillings to cater for costs arising out of the increasing numbers of prisoners and the Police Force will get 41.69 billion Shillings to deal with persons who contravene measures that were put in place to control the spread of coronavirus disease. They will also have an additional UGX223 billion for domestic arrears and others.
Despite the approval of the main the committee report, Dokolo Woman MP Cecilia Ogwal contested the supplementary allocations saying that it was not possible for the Ministries to absorb the funds in the remaining days of the financial year.
She also demanded a comprehensive post Covid-19 Stimulus Package instead of piecemeal supplementary requests.
“There is a need for a comprehensive study on how Uganda Development Corporation and Uganda Development Bank can benefit the ordinary SMEs which are agro-based and can transform the lives of the ordinary farmers and the general citizenry. We have however learnt that Uganda Development Bank disburses loans through commercial banks thereby making the rate of interest more expensive and unaffordable to the ordinary Ugandan borrowers,” said Ogwal.
MP Ogwal also noted chronic budgetary and fiscal indiscipline evident in the supplementary requests.
