Power crisis pushing Uganda into recession

Finance Minister Ezra Suruma unveiled the 2006/06 financial year budget two weeks ago against a backdrop of falling revenue collections due to the energy crisis that has plagued Uganda. The theme of the budget was “enhancing economic growth and household incomes through increased production and productivity.”

Dr Suruma outlined the three main purposes of the budget as being to stimulate economic growth and development, to provide resources for basic public goods and services; and to promote and maintain macroeconomic stability.

In order to ensure that the budget priorities provide tangible benefits to the people, he proposed interventions that will provide opportunities for both self and wage employment and remove constraints to labour productivity. Priority was given to sectors of the economy that contribute to employment, income generation and growth.

TOP ON the list of government priorities in this budget according to Dr Suruma is the energy sector. The prolonged drought has reduced generation capacity at the two dams in Jinja from 180MW to 135MW since the beginning of 2006. Coupled with increased demand for energy against a constrained supply, it has created a severe power crisis in the country.

East African