EAC reduces annual fiscal budget

Despite enlisting a new country, South Sudan, which expands the East African Community (EAC) into a six member state bloc, the EAC has reduced its fiscal year budget to just 101.4 million US dollars.

The Arusha-based EAC secretariat presented annual budget estimates for the Financial Year 2016/2017 totalling $101,374,589 to the East African Legislative Assembly currently sitting here.

The Budget speech was read before the EALA by the Deputy Minister for Foreign Affairs and East African Co-operation, Dr Susan Kolimba, on behalf of the Minister and Chair of the EAC Council of Ministers, Dr Augustine Mahiga.

The current budget has been reduced from 111 million US dollars presented to the House in the previous financial year, when the community had only five member states, Kenya, Rwanda, Uganda, Burundi and Tanzania.

The new budget, now with South Sudan aboard, prioritizes the full implementation of the EAC Single Customs Territory, enhanced implementation of the EAC Common Market Protocol especially additional commitments and interconnectivity of border immigration systems and procedures across Partner States and enhancement of productivity and value addition in key productive sectors.

The budget also takes cognisance of development of cross-border infrastructure and harmonisation of laws, policies and standards in respective sub-sectors, implementation of a liberalised EAC airspace, enhanced implementation a One Area Network in telecommunications and the implementation of EAC Peace and Security initiatives.

According to the Minister, other key specific priorities are strengthening of the legal and judicial systems, enhancement of Information, Communication and Education to promote popular participation of the citizenry in the EAC integration process and promotion of education, science and technology for creative and productive human resources.

The Chair of Council termed the establishment of a policy framework and institutional structures for establishment of the EAC Political Federation as another key priority area in the coming financial year.

The budget is allocated to the Organs and Institutions of the EAC as follows; East African Community Secretariat (US $57, 872, 785), East African Legislative Assembly (US $16,034,324) and the East African Court of Justice (US $4,286,477).

The Inter-University Council for East Africa shall receive (US $4,553,890), Lake Victoria Basin Commission (US $11,214,708) while US $ 2,131,422 is earmarked for the Lake Victoria Fisheries Organisation.

On their part, the East African Science and Technology Commission shall receive US $ 1,161,438, East African Kiswahili Commission (US $ 1,134,542) and the East African Health Research Commission (US $ 1,397,438).

The East African Competition Authority is to benefit from US $587,565 in the Financial Year. The 2016/2017 Budget is to be financed by Partner State contributions (US $47,565,377) compared to US $ 47 566,973 in the current Financial Year; Development Partners support (US $ 46,717,601) which is a significant drop from US $ 58,555,635 of the previous year.

The Member Universities will inject USD 431, 923, General Reserves USD 6, 354, 248 and miscellaneous revenue USD 305, 440. The EAC Political Federation is yet a key priority area on the agenda in the coming Financial Year as the mode of the regional Constitution making process commences.

The same applies to strengthening of regional and international relations through mobilisation of Partner States’ diplomatic missions and the East African diaspora for effective participation in EAC integration processes and building of multilateral/ international networks in pursuit of EAC objectives.

The Minister highlighted a number of achievements registered in the Financial Year 2015/2016, notably, the up scaling of the Single Customs Territory (SCT) through finalisation of operational instruments of the business manuals, deployment of SCT Monitoring and Evaluation tools and deployment of staff in some Partner States.

The minister remarked that 10 out of the 15 One Stop Border Posts were already operational.

Minister and Chair of the EAC Council of Ministers, Dr Augustine Mahiga Minister and Chair of the EAC Council of Ministers, Dr Augustine Mahiga

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