EAC TABLES THE BIGGEST BUDGET IN FOUR YEARS

BY GRACE MACHA IN ARUSHA

The annual budget of the expanding East African Community (EAC), the highest in four years,was expected to be tabled on Friday June 9th, 2023.

A total of $ 103.8 million is projected for expenditure during the 2023/24 financial year, starting on July 1st this year.

The estimates are higher compared to $ 91.5million and $ 91.7million approved for expenditure during 2022/23 and 2021/22 fiscal years respectively.

Budget allocations for the EAC have been falling from 2020/21 during which some $ 97.6million was approved for expenditure in that year.

That was nearly $ 4 million less from $ 111.4 million that was approved for expenditure in the 2019/20 financial year.

 

The marginal increase this time has drawn mixed reactions with some observers seeing it as a sign of easing the financial crisis the regional body faced in recent years.

However, others attribute the increase to sustained support from the development partners who are expected to inject some $44.8 million in the coming fiscal year.

Indirect funding has also come handy for the operations of the Arusha-based regional body. It has helped plug holes in poor remittances from some partner states.

Indirect funding is sourced from the EAC Affairs ministries of the member states, the General Reserve, member universities, miscellaneous revenue and other sources.

The budget speech will be read at the East African Legislative Assembly (Eala) by the Chairperson of the EAC Council of Ministers Ezechiel Nibigira on Friday morning.

This is according to a provisional programme for plenary and standing committees issued by the House.

Monday next week has been reserved for meetings of three Standing Committees of the House, which include the Committee on Communication, Trade and Investment.

The other committees which will hold the meetings are the Committee on Agriculture, Tourism and Natural Resources and the Committee on Legal, Rules and Privileges.

The House sitting will continue until June 20th this year with most of the days allotted to plenary sessions that will scrutinize, debate and approve the estimates in question.

According to the projected estimates of the EAC for 2023/24, each partner state will be obliged to contribute $ 7.3million to the kitty.

The EAC member countries are Tanzania, Uganda, Kenya, Burundi, Rwanda, South Sudan and the Democratic Republic of Congo (DRC).

If approved, approximately a half of the total $ 103.8million sought for approval estimates will go to the Secretariat, the executive arm of the Community.

The Arusha-based Secretariat has been allocated $ 50.9million,followed by Eala ($ 17.6million) while some $ 4.4 million will go to the East African Court of Justice (EACJ).

Lake Victoria Basin Commission (LVBC), an institution of the EAC based in Kisumu, will receive $ 8.4 million,topping all the institutions scattered across the region in budget allocation.

LVBC will be among the leading institutions to benefit from the donor funding. Out of its $ 8.4million budget, some $ 5.2million  will be sourced from the donors.

Another main beneficiary of the slot is Inter University Council of East Africa (IUCEA) which expects to receive $ 7.3 million of its total budget of $ 12.3 million from the development partners.

Development partners are also expected to inject $ 36.5 million for the activities funded through the EAC ministries in all the partner states,out of a total of $ 88.6 million.

Much as the EAC budget is showing some promising signs, concerns keep on rising on failure by some member countries to honour their financial obligations.

During a recent sitting in Bujumbura, the regional lawmakers expressed their dismay that some countries have perennially remained in the red over their obligations.

Fingers were pointed at Burundi,South Sudan and the resource-rich DRC which officially joined the bloc in March last year but yet to be fully integrated in the EAC operations.

Tanzania, Uganda and Kenya, the EAC founder members,were cleared for possible sanctions for delayed contributions to the organization's coffers.

Rwanda, which joined the bloc alongside Burundi in 2007, was commended for regularly honouring its financial obligations

EAC BUDGETS  BREAKDOWN

*2023/24   - $108.3million

*2022/23 - $ 91.5million

*2021/22  - $91.7m

*2020/21   - $97.6m

*2019/20    -$111.4m

*2018/19    - $99.7m

*2017/18    - $110.1m

*2016/17    - $101.3m