The World Bank and other donors have expressed dissatisfaction over the declining funding to environment and natural resources sector.
Only 0.26 percent of the budget was this financial year allocated to the environment and natural resources sector compared to 0.58 percent, which was allocated in the financial year 2007/2008.
Donors argue that funding to the sector is not increasing with the current environmental challenges like declining soil fertility, deforestation, decreasing fish stocks, and water pollution among others.
Martin Fodor, a senior Environment Specialist at the World Bank Office in Kampala says that is serious challenge of managing and protecting natural resources given as most Ugandans depend on wood fuel.
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Natalie Feinberg, the Danish Ambassador who has been chairing the Environment donor group says the declining funding to the environment is of concern because of the stagnation of safe water coverage in Uganda.
She says lack of enforcement of good management practices and little funding will expose forests, water bodies and wetlands to more damage.
Only one million Ugandans have been able to access safe water in the last two years with national safe water coverage standing at 52 percent
Maria Mutagamba, the Water and Environment Minister says that, the budget cuts have affected all other government departments.
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Uganda's economy is directly dependent on the environment and natural resources.
The degradation of these resources impacts heavily on the livelihood of poor communities by constraining their ability to increase incomes and earn sustainable livelihoods.