The high cost of running gov’t operations worries CSOs. Calls for the development of an annual borrowing plan.
Drake Nyamugabwa
The Civil Society Organizations (CSOs) under their umbrella body Civil Society Budget Advocacy Group have urged the government to address the issues of the high cost of running government operations which they say have continued to be higher than the development expenditure and reducing resources available for service delivery.
The CSOs have also expressed concern that the lack of standardized goods and service prices that have hampered proper government procurements.
While presenting CSOs’ perspectives on the ministerial policy statements for the FY 2023/23 presented to parliamentary committees by different ministries, departments, and agencies, Mr Ronald Ochen an Economist at CSBAG said that in a bid to address the high cost of running government operations, there is need for parliament to ask the ministry of public services to fast track rationalization of Ministries, Departments and Agencies to minimize redundancy and improve resource administration.
“We call upon the parliament to implore the Ministry of public service to fast-track the rationalization of MDAs to eliminate redundancies in the medium term, reduce the cost of running government and improve efficiency in resource management,” he said
During the same press conference held on 27th April 2023 at CSBAG offices in Ntinda, The Program Assistant at CSBAG, Pascal Muhangi urged the government to develop an annual debt borrowing plan consistent while preserving debt sustainability to inform the execution of the upcoming fiscal year budget.
He said that the issue of rising public debt is projected to peak at 53% of GDP by June 2023 needs to be addressed.
"Much as the FY 2023/24 is projected to increase from UGX 47.328 trillion to UGX 50.871 trillion, the discretionary spending is to reduce by only UGX 3.370 trillion,” he said
CSOs have commended the government on the measures taken to revamp the economy which is projected to grow between 6 and 7 % in FY 2023/24 from 5.3% in FY 2022/23, the release of Local government budgets, the government’s commitment to clear outstanding domestic arrears.
The Deputy Executive Director at CSBAG Ms. Carol Namagembe, said that the lack of a government standard price list for goods and services has affected the government and other procurement systems.
“The unit costs within government Ministries, Departments and Agencies and Local Governments vary yet the quality and standards of goods and services are in most cases the same. Government should institute a mechanism of generating a national pricelist from the Public Procurement and Disposal of Public Assets Authority” she said
Ronald an Economist said "We ask Ministry of Finance, Planninf and Econmic Development to exercise Sections 79 and 80 of the PFMA, 2015 to penalize and sanction Accounting Officers who subsequently accumulate arrears, in a bid to address the continued accumulation of arrears"
