Gov’t to Revise National Budget after World Bank Halts Funding- Musasizi

The Minister of State for Finance, Henry Musasizi, has informed Parliament that the government intends to revise the national budget after World Bank halted funding to Uganda following the passing into law of the Anti-Homosexuality Act 2023.

“We took the firm decision and we agreed that we shall face the consequences. We shall be coming soon; I want to prepare your minds that very soon we are going to revise the budget downwards and we shall be coming to you for support,” Musasizi told MPs on Thursday.

In a statement issued on August 8, World Bank said Uganda’s Anti-Homosexuality Act contradicts its values.

“After reviewing our portfolio in the context of the new legislation, no new public financing will be presented to our Board of Executive Directors,” the bank wrote.

In May, the government revised the 2023/2024 financial year budget to Shs52 trillion from Shs51 trillion.

This was contained in the corrigenda to the budget for Financial Year 2023/2024 which provided for details of correction of errors and omissions under the draft budget estimates for 2023/2024 that were tabled by the Minister of Finance on 30 March 2023.

According to Parliament Watch, in the 2023/2024 national budget, Government had projected to acquire UGX8.255tn in project support through external financing, although not much is known which share World Bank has in this figure.

Musasizi said the emoluments of public servants could be affected.

“Even the emoluments are going to be affected given the preliminary we are seeing. We shall be coming in one week or so, to tell you the consequences and ask for your approval on how we shall move forward in the current challenges.”

Amos Kankunda, Chairperson of Parliament’s Finance Committee, revealed that Parliament doesn’t regret the decision it took to pass into law the Anti-Homosexuality Act 2023, saying the Committee will offer leadership to Uganda on how to survive the financing ban imposed by the World Bank.

“I know you are aware that as a country, we have been slapped with stopping funding from World Bank, given the position we took as a country which we don’t regret the passing of the Anti-Homosexuality law and indeed, we are on the right trajectory,” he said on Thursday.

He added: “We will find ways of surviving & as a committee, this is our responsibility since we handle majorly the supply side of the budget, to make sure we work with the Ministry to mobilise sufficient funds and work within our means to make sure the country moves on.”.

On Wednesday, President Museveni responded to the decision by World Bank to suspend new funding saying the country has oil and will be able to develop without loans.  

“I want to inform everybody, starting with Ugandans, that Uganda will develop with or without loans. Moreover, our first oil will start flowing by 2025.”

He said that will be an additional source of State revenues and also financial flow into the economy.