Professor Augustus Nuwagaba has tasked Government to make a budget that is aimed at poverty reduction and that addresses inequality.
Nuwagaba (R) chats with IMF country representative Thomas Richardson after a bugdet consultation meet
Presenting a paper titled: “Towards an effective budget for Uganda,” the Makerere University associate professor of economics suggested that the Government should aim at protecting those who are poor and/or socially and economically vulnerable when making the 2013/2014 financial year budget.
He said it was paramount for the State to incorporate the voices of the poor in the budget process using top-to-bottom approach and not only at the top.
He said the State should also consider providing feedback to the citizens through transparent accountable systems using downward accountability approach.
Nuwagaba made the remarks during the pre-budget breakfast meeting at Kampala Serena Hotel on Wednesday.
The breakfast meeting was organised by Civil Society Budget Advocacy Group in conjunction with the Forum for Women in Democracy.
He asked Government to avoid donor dogma syndrome and strengthen domestic production and export sector performance.
The poverty expert noted that despite the Government’s stated macro-economic achievements, household incomes have remained low. He pointed out that agriculture engages up to 73% of the population, the majority of whom are women and poor producing at subsistence level.
He advised that for effective budget that delivers results, Government should focus on growth of primary sectors, ensure balanced development, appropriate fiscal policy management and strengthen the relationship between macro and micro economy as well as addressing inequality within a population.
Nuwagaba advised Government to adopt flagship budgeting approach which comprises of selecting the most pertinent sectors and funding it/them with an aim of having an impact in this sector with usually highest multiplier effects.
He said the above approach is practiced in Mauritius and it has borne tremendous results.
He also suggested that Government uses modified budgeting approach as it’s done in Singapore.
He said modified budgeting is a form of decentralised budgeting process where a sub-sector is provided with necessary resources to implement specifically identified activities aimed at achieved specifically identified targets.
Nuwagaba enumerated some of impediments to budget process as corruption coupled with lack of accountability, narrow tax base, and lack of budget discipline and inappropriate sharing of resources between central and local governments.
He also asked Government to link budget with strategic plan and performance.
By Francis Emorut, The New Vision
