Keith Muhakanizi, the deputy secretary to the Treasury, has denied that the government is broke and will be incapable of financing the 2012/13 budget.
There has been growing concern in government departments that the government is broke after it cut most public administration expenditures for the last quarter of this financial year.
Speaking in an exclusive interview with Uganda Radio Network on Thursday, Muhakanizi said for the next financial year government expenditure is instead projected to increase from the current 9.6 trillion shillings to 10.2 trillion shillings, an increase of about 103 billion shillings.
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Muhakanizi said there is no way the country can run broke, arguing that going broke would mean the government is incapable of raising any taxes which is an impossibility.
The treasury chief, however, said what will happen is that government will prioritise spending on critical sectors like infrastructure and those that have a positive bearing on the country’s economic growth over and above public administration.
He said that could be the reason why there is concern in certain circles.
Muhakanizi said what is true is that the government has cut much of the funding for public administration for the last quarter of the 2011/12 financial year.
He explained that the government has spent most money on priority areas with the aim of improving the country’s economic growth affecting public administration.
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Muhakanizi said the public should not get alarmed that the government is running broke.
