NEW SALARY STRUCTURE: Museveni Minister’s Statement Points to Bad News for Government Employees Hoping to Get Salary Increment in July 2022

State Minister for Planning Amos Lugoloobi’s statement on budget estimates for the 2022-23 financial year points to the impossibility of salary increment that most government employees have been looking forward to. 

THE SALARY INCREMENT PROMISES & DISAPPOINTMENTS — SO FAR

As we reported recently, President Museveni’s Government has proposed huge salary increments for teachers, doctors and other employees starting July 2022. (Read Story Here)

The proposed increments have left many people wondering if government will really fulfill this pledge and increase salaries by very high amounts.

For example, opposition leader Dr Kizza Besigye has argued that the promise of salary increment is just ‘another lie.’ (Read Story Here).

BUDGET ESTIMATES

When he presented budget estimates before Parliament in line with provisions of the Public Finance Management Act which require the Minister of Finance to present annual budget estimates by April 01 of the preceding year, Minister Lugoloobi painted a grim picture of the country’s economy.

The 2022-23 will be implemented under the theme: ‘Full Monetization of the Ugandan Economy through Commercial Agriculture, Industrialization, Expanding and Broadening Services, and Digital Transformation and Market Access’ and is derived from the Third National Development Plan (NDPIII) overall theme of ‘Increased Household Incomes and Improved Quality of Life of Ugandans.’

The main focus of the Shs47.25tn budget, Lugoloobi told Parliament, will be ensuring peace and stability, mitigating the impact of the Covid19 pandemic, and enhancing socio-economic transformation.

Lugoloobi said government was unable to borrow over 53.9 per cent which in itself is above the maximum requirement of 53.1 per cent, provided for in the Charter for Fiscal Responsibility.

He also talked of government’s inability to impose new taxes or raise the existing taxes due to the need for the economy to recover from the Covid19 pandemic impact; the increasing commitments of interest payments and rising statutory obligations; tight fiscal space resulting from the effects of the Covid19 pandemic which delayed implementation of projects; and reduced budget support by development partners.

The minister also made it clear that government was grappling with the challenge of “inadequate funds to finance all our budget needs;” on top of emerging critical funding needs required to transform the economy and meet more statutory obligations.

As we reported recently, there is a likelihood that government might prioritize scientists for a slight salary increment in the next financial year. (Read Story Here).