Netherlands cuts aid to Uganda
Nov 30, 2005
The Netherlands has cut its budget support to Uganda this year by 27% or (six million Euros) over concerns about the political transition and budgetary indiscipline, an embassy statement has said.
By Paul Busharizi
The Netherlands has cut its budget support to Uganda this year by 27% or (six million Euros) over concerns about the political transition and budgetary indiscipline, an embassy statement has said.
Budget support is aid given to the Government that is not specific to particular projects but is employed in favour of agreed sectors. In Uganda’s case most budgetary aid goes to support the Poverty Eradication Action Plan, whose major priority areas are roads, health and education.
Last financial year which ended in June, budgetary support from the Netherlands stood at Euros 21.9m but has now been slashed to Euros 15.9m. The six million saved will be diverted to humanitarian assistance in northern Uganda.
“The Netherlands has decided to withhold Euros 6m of its budget support to Uganda for FY 2005/06, lowering its commitment from Euros 21.9m to Euros 15.9m,†said the statement.
“This decision is based on concern of the Netherlands that insufficient progress is being made on governance issues (especially as related to political transition) and in the area of macroeconomic management,†the Dutch said.
The statement said the Dutch were taking their lead from the World Bank which early this month announced a 10% cut in budgetary support to $135m on concerns about budgetary indiscipline.
However, the Netherlands reiterated it stance as a key Uganda development partner.
Earlier this month, European Union head of delegation Sigurd Illing said donors were concerned about budgetary discipline, specifically the creation of new districts without consultation.
Illing said the EU would not automatically follow the World Bank in aid cuts to Uganda but said individual members of the EU could act unilaterally.
The Netherlands has cut its budget support to Uganda this year by 27% or (six million Euros) over concerns about the political transition and budgetary indiscipline, an embassy statement has said.
Budget support is aid given to the Government that is not specific to particular projects but is employed in favour of agreed sectors. In Uganda’s case most budgetary aid goes to support the Poverty Eradication Action Plan, whose major priority areas are roads, health and education.
Last financial year which ended in June, budgetary support from the Netherlands stood at Euros 21.9m but has now been slashed to Euros 15.9m. The six million saved will be diverted to humanitarian assistance in northern Uganda.
“The Netherlands has decided to withhold Euros 6m of its budget support to Uganda for FY 2005/06, lowering its commitment from Euros 21.9m to Euros 15.9m,†said the statement.
“This decision is based on concern of the Netherlands that insufficient progress is being made on governance issues (especially as related to political transition) and in the area of macroeconomic management,†the Dutch said.
The statement said the Dutch were taking their lead from the World Bank which early this month announced a 10% cut in budgetary support to $135m on concerns about budgetary indiscipline.
However, the Netherlands reiterated it stance as a key Uganda development partner.
Earlier this month, European Union head of delegation Sigurd Illing said donors were concerned about budgetary discipline, specifically the creation of new districts without consultation.
Illing said the EU would not automatically follow the World Bank in aid cuts to Uganda but said individual members of the EU could act unilaterally.