Editorial

Welcome to our 17^th Issue of the Economic Governance Briefer. In this edition, we delve into a critical theme that resonates deeply with budget execution – "Unlocking Efficiency and Effectiveness in Budget Execution: A Vital Imperative for FY 2023/24". As stewards of responsible governance, we recognize that translating financial allocations into tangible outcomes is paramount for sustainable development.

One of the pressing concerns spotlighted in this issue is the perennial challenge of low absorption of budgets by National Ministries, Departments, Agencies, and local governments. Our articles dissect the underlying contributors such as bureaucracy, governance bottlenecks, capacity constraints, late disbursements, and complex procurement processes. We present actionable recommendations, emphasizing streamlined decision-making, fortified governance mechanisms, augmented institutional capacities, and the timely flow of funds. We believe that a concerted effort to address these factors can reshape the narrative of budget execution, catalysing positive change in service delivery.

The second focal point of this briefer addresses the inadequacy of climate change financing. As the urgency of climate action intensifies, financing becomes a linchpin for effective mitigation and adaptation strategies. Our contributors illuminate the gaps in climate financing, unveiling the potential consequences of underinvestment. By championing increased climate funding, we align with global sustainability objectives and fortify our resilience against environmental challenges.

Lastly, we draw attention to the crucial realm of Early Childhood Development (ECD) investment. Our authors underline the significance of prioritizing resources for nurturing the future leaders of Uganda. Adequate financing for ECD not only lays the foundation for a productive citizenry but also cultivates a society that is equitable, innovative, and robust.

As we peruse the pages of this 17th edition, let us reflect on the implications of efficient and effective budget execution. Each financial decision carries the potential to transform lives, communities, and the nation. We urge policymakers, practitioners, and citizens to embrace our collective responsibility in optimizing every budgetary allocation for the betterment of society.

At ACODE, we remain committed to fostering insightful dialogues on economic governance. We extend our gratitude to the authors, researchers, and contributors who enrich this briefer with their expertise. Together, let us turn the spotlight on the imperatives of budget execution efficiency and effectiveness, paving the way for a prosperous and sustainable future. In case you missed Issue no.16, please click here.

Sincerely,

Dr. Arthur Bainomugisha, Executive Director.

In this Issue

The government’s approach to climate change in the FY 2023/2024 shows that the phenomenon is real after all, but ‘Not Yet Uhuru’

By Dr Anthony Mugeere, Research Fellow, ACODE

It turns out climate change is not just a PHENOMENON. It is a real existential threat to humanity--all of us! And one of the leading issues to deal with by any government anywhere in the world may be. Certainly, a real danger to our livelihoods and survival, certainly. This was this evident in the Budget Speech presented by Finance, Planning and Economic Development Minister, Matia Kasaijja on June 15, 2023. Based on the theme: Full Monetisation of Uganda’s Economy through Commercial Agriculture, Industrialisation, Expanding and Broadening Services, Digital Transformation and Market Access, the speech highlighted the country’s Economic Growth Strategy and Outlook in which “mitigating the negative impact of climate change on the economy” was high among its priorities.

The Imperative of Government Investment in Children

By Mitchell Ainebyoona, Specialist on Public Investment in Children, Save the Children

Almost half of Uganda’s population is children between the age of 0 to 14 (46%) of the overall population, representing one of the youngest populations in the world. Although there have been additional efforts to ease and better children’s lives such as; programs and legislation to increase school enrollment, decrease child mortality, reduce maternal mortality, and adopt the Children Amendment Act, many children still cannot get the full benefits of these.

Auditing in Budget Execution for effective service delivery

By Richard Ayesigwa, Research Fellow & Peter Watuwa, Research Intern, ACODE

The 1^st of July 2023 marked the start of the implementation of the new FY 2023/24 budget. While the budget preparation process has improved by leaps and bounds in terms of transparency, participation, and inclusivity, budget execution remains a challenge, especially in local governments which play a pivotal role in service delivery. At local government, avenues exist for influencing and popularizing the budgeting process, but the same cannot be said about the budget execution process although it has a more difficult responsibility to complete since it must give products and services to the community following the budget formulation stage.

Budget Execution is central to the delivery of services at the lowest level

By Medard Kaganzi, Research Intern, ACODE

Budget execution is at the core of government businesses globally and also quality budget execution is measured in terms of a government's ability to accurately hit its own revenue and service delivery targets. In a study on the effect of budget execution on service delivery, Ejang, M. et al (2022) observed that budget performance affects service delivery. Qazi et al., (2016), also observed that improving service delivery requires allocating sufficient budget resources that bridge gaps between budget performance monitoring and planned activities.

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