1. AGRICULTURE PUBLIC EXPENDITURE IN UGANDA
Godfrey Bahiigwa
PMA Secretariat
Ministry of Agriculture, Animal Industry and Fisheries
ILRI Campus, Addis Ababa
May 11, 2009

2. Notes from PER in Uganda 2007
Increasing funding is not enough, increasing efficiency in resource use is very important
Resource allocation process between Ministry of Finance and Agriculture needs improvement
Ministry of Agriculture needs to improve its planning, budget execution and monitoring
Local government planning and monitoring need to be strengthened

3. Status of Public Spending in Agriculture
Ag. PE is 3.8% of national budget in FY 2008/09
Ag. PE will be 3.3% of national budget in YF 2009/10
Ag. PE projected to be 5.0% of national budget in 2011/12
With COFOG definition Ag PE is higher, but only for comparative purposes, not aligned to national budgeting processes

4. Planning and Budgeting Issues
There is a delink between MAAIF plan and spending => related to low resources and budgetary indiscipline
Planning and resource allocation processes are not transparent, even within MAAIF
DSIP revision and implementation will try to improve these processes

5. Public Investments by MAAIF
Agricultural advisory services (NAADS
Agricultural research and technology development (NARS)
Regulatory services and quality assurance
Agricultural inputs (e.g. improved seed)
Disease and pest control
Quality planting and stocking material
Water for agricultural production (incl. conservation and irrigation)
Agricultural mechanization
Infrastructure supportive of commodity value chains
Policy coordination and institutional strengthening

6. Complimentary Investments Required by Agriculture
Rural transport infrastructure
Rural financial services
Agro-industrial development and trade
Rural electrification
Natural resource use and management
Land access and use
Agricultural education

7. Funding Agriculture in the MTEF
In 2008/09 FY agriculture’s share of the national budget is about 3.8%, but projected to be about 3.3% in FY 2009/10, a decline, yet agriculture is touted as a priority!
However, based on economic modeling, to achieve an annual growth rate of 6% requires an annual increase of the agriculture budget by 26%. At this rate, the share of the budget would be 14% of the national budget by 2015.

8. DSIP Requirements vs MTEF Allocations (UGX Bn)
2009/10
2010/11
2011/12
DSIP needs
373.9
389.6
429.3
MTEF allocation
278.8
316.1
372.9
Funding gap
95.1
73.5
56.4
Finding gap (%)
25.4
18.9
13.1

9. DSIP Requirements vs MTEF Allocations (UGX Bn)
2009/10
2010/11
2011/12
DSIP needs
373.9
389.6
429.3
MTEF allocation
278.8
316.1
372.9
Funding gap
95.1
73.5
56.4
Finding gap (%)
25.4
18.9
13.1

10. Looking Ahead on PERs
PERs definitely useful as monitoring instruments and can inform the budgetary processes
Need to strengthen analysis that links spending and outcomes at sectoral level as well as economy-wide
Analysis of expenditure sequencing would be helpful, given budget constraints
Analytical capacity is weak at national level => how do we get it improved? ReSAKSS?

11. THANK YOU