2023/2024 budget: Govt earmarks over Shs 1trn for SACCOs
KAMPALA– Government has earmarked Shs 1.177 trillion for various SACCOs in the upcoming 2023/2024 financial year, according to State Minister for Microfinance, Haruna Kasolo.
Parliament yesterday approved the Shs 52trn budget for the next financial year, which is higher than Shs 48.13tn passed for the current financial year.
According to the minister, out of the Shs 1.77trn for collecting saving and investment groups for citizens, Shs 1.05trn has been allocated to the Parish Development Model SACCOs [PDM SACCOs], Shs 100 billion for Emyooga SACCOs, and Shs 27bln for other categories of SACCOs funded through the Microfinance Support Centre [MSC].
He said government wants to empower millions of citizens through cheap credit offered by the SACCOs, adding that accessing capital has been a big challenge to Ugandans. He said not only commercial banks charge high interest rates, but also require collateral, which over 78 percent of Ugandans lack.
He said in the coming budget to be read on June 15, 2023, government has also provided Shs 200bln credit facility for small and medium enterprises at a low interest rate of 10 percent to facility the recovery and growth of business.
Meanwhile, the National Agricultural Advisory Services [NAADS] lost Shs 3bln it wanted for purchase of milk coolers, which MPs said is a duplication since there are other agencies already doing the same.
Ministry of Finance, Planning and Economic Development wanted an increase of Shs10 billion to their workshops and seminars budget, which MPs rejected. Parliament also stopped a similar increment of Shs 10bln to the ministry’s travel inland vote.
The Uganda Warehouse Receipts Authority, an agency under Ministry of Trade, Industry and Cooperatives had a sought Shs 2bln allocation but it was rejected on grounds of non-absorption and spending monies without Parliament’s appropriation.
https://thecooperator.news/emyooga-saccos-in-masaka-region-get-extra-seed-capital-of-shs-6bln/
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