On June 13, 2024, Hon. Matia Kasaija, Uganda’s Minister of Finance, Planning, and Economic Development, presented the budget for the financial year 2024/25. While the budget aims to set the foundation for expanding Uganda’s GDP from $50 billion in FY2022/23 to $500 billion by 2040, it reveals significant challenges in addressing environmental protection and climate change. Experts at a recent Civil Society Organization (CSO) Post-Budget Dialogue highlighted the detrimental impact of climate change and corruption on Uganda’s budget performance and overall development.
The minister acknowledged climate change as one of the most significant threats to Uganda’s growth and development, citing its impact on agricultural production and infrastructure. Despite this recognition, the allocated budget for climate change mitigation and environmental protection tells a different story.
The government plans to restore 42,450 hectares of degraded wetlands and allocated Shs. 516.78 billion for climate change mitigation, natural resources protection, and water resources management. Additionally, an extra Shs. 55 billion will be injected into the Uganda Development Bank (UDB) to enhance green financing. However, these efforts are overshadowed by the significant Shs. 920.86 billion allocated to the oil and gas sector, a major contributor to environmental degradation.
Experts at the CSO Post-Budget Dialogue, organized by the Advocates Coalition for Development and Environment (ACODE) and the Civil Society Budget Advocacy Group (CSBAG), emphasized the need to address corruption and climate change to improve budget performance. Dr. Arthur Beinomugisha, executive director of ACODE, pointed out that while Uganda ranks well in budget transparency, it lags in accountability, with corruption remaining a severe threat to economic stability and development.
The financial year 2024/25 budget has reduced the allocation for climate change, environmental protection, and water resources management from Shs. 2.2 trillion in FY2023/24 to Shs. 516.78 billion. This reduction, coupled with increased funding for the oil and gas sector, raises concerns about the government’s commitment to combating climate change. Dr. Beinomugisha highlighted the importance of supporting the National Environment Management Authority (NEMA) in its efforts to address environmental degradation and urged Ugandans to back these initiatives for economic stability.
Despite the challenges, Uganda’s economy is projected to grow at an average rate of 5.5%, potentially reaching 6%. However, the budget’s effectiveness is threatened by climate change and corruption. Julius Mukunda, Executive Director of CSBAG, stressed the need for prudent debt management and criticized the budget for catering to the preferences of Members of Parliament and other leaders rather than addressing the nation’s critical challenges.
The 2024/25 budget presents a paradox where the government’s stated commitment to climate change mitigation and environmental protection is undermined by substantial investments in the oil and gas sector. Addressing the intertwined issues of climate change, corruption, and misaligned budget priorities is crucial for Uganda’s sustainable development. Without a genuine commitment to environmental protection and accountability, the country’s economic and environmental prospects remain precarious.
