Public Funding for Agricultural extension services in Uganda: Potential sources for budget reallocation for the Financial Year 2023/24

Public Funding for Agricultural extension services in Uganda: Potential sources for budget reallocation for the Financial Year 2023/24

Uganda has ambitious agricultural-related performance targets under its Medium-Term Expenditure Framework (FY2023/24- FY2027/28). To develop smallholder agriculture, the AGI programme aims to expand the e-voucher system for input access, substantially enhance agricultural extension services, and promote sustainable land management practices. However, the share of the national budget allocated to agricultural-related activities remains low and the proportion allocated to extension service provision is declining. The policy note analyses the AGI programme budget estimates for the FY 2023/24 to identify the gaps within the budget allocation to the AGI programme and potential avenues for reallocation to ensure adequate extension service provision.

We find no budget allocation for non-wage operation grants at LG to support the provision of agricultural extension services in the FY 2023/24 budget. This contrasts with FY2022/23, where UGX 44.3 billion was allocated. The absence of the non-wage operation extension facilitation grant notwithstanding, the Government allocated a wage budget of UGX 141.5 billion for the salaries of agricultural extension staff at LG. Despite the decentralisation of most of the AGI programme functions to LGs, a large portion of the AGI budget continues to be retained by MAAIF MDAs at the centre.

We propose that the MoFPED could reallocate part of the NAADS secretariat budget to distribute agro-inputs to meet the missing operational extension budget in the FY2023/24 budget. This is possible since, with the advent of the PDM, Cabinet resolved to use local government resources to deliver the first PDM pillar. Alternatively, MoFPED could consolidate the scattered agricultural extension funds within MDAs under the different institutions responsible for delivering on the AGI programme.

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• Published Oct 13, 2023