EAC budget dwindles third year in a row as sponsors exit

East African Community budget has for the third time in a row dropped, with a significant reduction in the number of development partners.

Last week the regional legislative assembly debated and approved a Sh10.734 billion budget for the 2015/16 financial year, down from Sh12.049 billion approved last year. The assembly  approved Sh12.785 billion in 2013.

In the financial year 2015/16, development partners support amounted to Sh5.697 billion,  a decline from Sh7.286 billion contributed to the regional budget in the previous year.

Member states’ contributions have, however, gone up to plug the deficit. In the 2015/16 financial year, EAC member countries contributed Sh4.613 billion compared to Sh4.554 billion in 2014/15.

According to a statement from the secretariat, the budget prioritises the operationalisation of the Single Customs Territory and enhanced implementation of the EAC Common Market Protocol.

The financial statement also has a particular focus on implementation of the new generation EAC e-passport and development of the East Africa trading, payments and settlement systems.

During the debate, the legislative assembly faulted the budgeting process, saying it lacked seriousness.

CHRONICALLY UNDERFUNDED

“If you look at the budget, there is low absorption. We are bringing in funds that we are not able to use and this has been going on year after year. We need to address the problem. Is the problem in planning or in accountability and usage?,” Hon Mumbi Ngaru said.

On Tuesday last week, the Chair of the Council of Ministers Abdallah Sadaala Abdallah moved a motion that sought to turn the regional assembly into a committee that would consider and approve the financial statement for the financial year 2015/16.

Mr Abdallah also called for the formation of a committee of supply and approve the estimates of expenditure.

In a bid to enhance the budgeting process, the committee called for a review of the EAC Budget Act.  It also called for the building of capacity of Members to enable them handle the Medium-Term Expenditure Framework (MTEF) budgeting process. 

The Committee was also categorical that there is need to further curtail excess travel, enhance implementation of the decisions and directives of the council of ministers. 

It thus insisted that the directive on video conferencing be further adhered to, and that all departments within the EAC should adjust their budgets to reflect the same.

The Committee is further concerned that the social sectors at the EAC have been chronically underfunded over time and thus calls for the re-allocation to the extent possible in order to restore some activities of the sector to allow for their effective implementation.

According to EALA member Susan Nakawuki, the directorate of productive and Social Sectors remained largely underfunded. 

“The allocated amount in budget is miserable. If you look at agriculture and food security, much is said but what is provided for in the MTEF is the opposite, yet this sector touches on the very hearts of East Africans. I beg the Chair of Council to look for more money for this sector,” Ms Nakawuki said.