Government has slashed Kampala Capital City Authority (KCCA) budget for 2020/2021 by Shs114b and the KCCA leaders worry this will worsen the existing funding deficits.
In 2019/2020 budget, government allocated Shs520b to KCCA) but the new indicative figures from the Ministry of Finance for 2020/2021 show that the city will be allocated only Shs406b this financial year.
'We recently launched a beautiful strategic plan which technocrats said will propel Kampala City forward but the new budget figures mean that the implementation of the plan is [not possible] because there is no money yet we need about Shs7 trillion. We have the drainage and transport masterplans but they haven't been implemented due to limited funds," Erias Lukwago, Lord Mayor
The budget reduction comes barely three weeks after KCCA unveiled a five-year strategic plan for the city redevelopment.
Mr Lukwago yesterday told journalists that the continuous budget cuts for Kampala will frustrate the city's development.
Mr Lukwago implored government to reconsider the new budget allocation for Kampala and increase the funding to enable KCCA implement the strategic plan. For KCCA to implement the strategic plan, Mr Lukwago said they need at least Shs1.2 trillion every financial year.
He said Kampala's infrastructural development is majorly funded by loans from external funders. He said of the city's 2,110km road network, only 600km are paved while the rest of the kilometres are still unpaved.
Of Shs406b budget for Financial Year 2020/2021, Shs298b will come from external funding to facilitate the city's infrastructural projects.
Asked what KCCA will do to plug the funding gaps, Mr Lukwago said he has called for a cabinet meeting this week where a resolution will be made to demand more funding from the central government.
He faulted Prime Minister Ruhakana Rugunda for allegedly failing to make a case to increase KCCA budget yet he recently officiated at the launch of the city's strategic plan.
"You can't give hope to Ugandans by unveiling such a beautiful plan for the city and then drastically slash its budget. We expected the Prime Minister to defend this new baby [strategic plan] by adding his voice to demand increment of the city budget but he didn't. This means that Dr Rugunda unveiled a cosmetic plan because it won't be implemented soon," Mr Lukwago said.
State Minister for Kampala Affairs Benny Namugwanya acknowledged the budget cuts but noted that they would continue to engage the Ministry of Finance to adjust Kampala's budget in order to allow KCCA achieve its vision of redeveloping Kampala City.