The East African Community (EAC) has unveiled its 2009/10 fiscal year budget, showing an increase of 34 per cent from the previous year.
The EAC has proposed to spend USD 54,257, 291 in the next financial year. Budget estimates for the previous year were USD 40,499,096.
The EAC trading bloc comprising Rwanda, Kenya, Uganda, Burundi and Tanzania is embracing a strong and large market of a combined population of 120 million people, with a land area of 1.9 million square kilometres and a combined GDP of USD 47 billion.
Tabling the budget estimates in the EA Legislative Assembly (EALA) on Thursday, secretary to the EAC Council of Ministers Monique Makaruliza said the estimates reflected an overall increase of 34 per cent.
Development expenditure has the lion’s share, with USD 27,423,600 (50.6 per cent); money allocated for personnel emoluments is USD 16,719,628 (30.8 per cent), while the recurrent expenditure package stands at USD 10,114,063 (18.6 per cent).
Institutional budgetary allocations show that the EAC secretariat has the lion's share, with USD 25,655,155 slated for its coffers.
The East African Legislative Assembly got USD 8,573,761, while the East African Court of Justice has been allocated USD 2,868,613 for administration of justice.
However, even with pressure from EAC partners to prioritise conservation of Lake Victoria, the Lake Victoria Basin Commission has been allocated a dismissal USD 12,238,553.
While unveiling the budget, Makaruliza said the budget was to be financed by miscellaneous income of USD 66,927, contributions from partner states of USD 27,966,699 and development partners’ contributions of USD 26,223,665.
The secretariat, she said, would be seeking the support of development partners to cover the shortfall in the budget required to execute the planned activities of the secretariat in the next financial year
The budget is structured under the theme `Strategic priorities to deepen EAC integration, towards a Common Market and Monetary Union’.
The major highlights of the 2009/10 fiscal year, Makaruliza said, include consolidating the Customs Union, finalizing negotiations on the EA Common Market protocol; and launching of the protocol.
Others are related with promoting EAC trade and investments, including EPA negotiations, concretizing regional projects and programmes in various sectors and prioritizing infrastructure development.
Others are laying the foundation for a monetary union, intensifying activities under political federation agenda and co-operation in political affairs.
On the list also there is an issue of streamlining and strengthening organs’ coordination, financial and administrative systems and operations for an efficient and effective EAC.
The revenue and expenditure budget of the EAC is being tabled against the backdrop of a serious global financial and economic crisis that could adversely impact the partner states' economies as well as those of their major development partners.
The International Monetary Fund (IMF) has projected a 1.3 per cent decline in global economic activity for the calendar year 2009.
