East African Community approves Sh14.6 billion budget
By Vincent Ombati |
Deng Alor Kuol, chair of the EAC Council of Ministers, presented the budget with a $35 million (Sh4.5 billion) deficit from the previous year to the East Africa Legislative Assembly (EALA).
The East African Community (EAC) has adopted the Appropriation Bill, 2024, with a $112,984,442 (Sh14.6 billion) budget for the financial year 2024/2025 to cater to the needs of various organs and institutions.
The new budget is an increase of 8.7 per cent from last year's $103 million (Sh13.3 billion). It came as members' contributions decreased from $73 million (Sh9.4 billion) to $67.78 million (Sh8.7 billion), a change that has lowered the internal revenue to less than 40 per cent of the total budget.
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Deng Alor Kuol, chair of the EAC Council of Ministers, presented the budget with a $35 million (Sh4.5 billion) deficit from the previous year to the East African Legislative Assembly (EALA) on June 29.
The deficit has been a major concern for programme implementation by the secretariat.
Kuol acknowledged that the budget comes while the EAC is experiencing unfavourable global and financial conditions that have harmed the economic performance of partner states.
He added that the high cost of the importation of fuel and food in the region has put pressure on exchange rates and foreign reserves.
The East African Legislative Assembly has this afternoon passed the EAC Appropriation Bill, 2024.
— East African Community (@jumuiya) June 29, 2024
The House also adopted the Report of the Committee on General Purpose on the EAC budget estimates for revenue and expenditure for the financial year 2024/2025@SGNduva @EA_Bunge pic.twitter.com/DaUpOCX6c7
Sixty-one per cent of the budget of $67,785,519 million (Sh8.7 billion) )will be raised by members and other internal revenues, while the remaining 39 per cent or $43,936,292 million (Sh5.7 billion), will come from development partners.
Kuol informed member states that the region's economic performance grew in 2023 and is expected to grow further. He also revealed strong performances in different sectors, adding that sustainable public investment support was a key booster of the positive results.
"GDP growth rates range from 2 per cent to 8.1 per cent, while partner state economies are projected to continue improving, with economic growth expected to be higher than the global and sub-Saharan Africa growth rates of 3.2 per cent and 3.8 per cent respectively," added Kuol.
The minister added that the budgetary allocation considered key areas that will integrate and boost the growth of the East Africa region.
"The budget embodies a strategic approach aimed at fostering sustainable economic transformation through fiscal consolidation and targeted investments in climate change mitigation and adaptation," he said.
EAC organs and institutions were the largest beneficiaries, with the Secretariat allocated $51,677,120 million (Sh6.7 billion), EALA $20,469,040 million (Sh2.6 billion), and the Inter-University Council for East Africa $17,287,618 million (Sh2.2 billion).
Kuol urged member states - the DRC, Somalia, Burundi, Kenya, Rwanda, South Sudan, Uganda, and Tanzania - to grab opportunities brought about by the expanded East Africa market.
EAC Secretary General Veronica Nduva affirmed her commitment to working closely with and supporting the assembly.
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