The Minister of State for Sports, Denis Hamson Obua, has told Sports Federations to get ready for hard and tough times ahead.
Obua, speaking during the 7th National Sports Forum on Wednesday, notified the Sports Heads of imminent budget cuts from Government.
Obua chaired the forum held via Zoom as the Sports stakeholders convened to discuss on a number of issues affecting the industry.
The meeting held at least once every three months with National Sports Associations (Federation), was attended by representatives from Ministry of Education and Sports, the Council and Staff of National Council of Sports, Uganda Olympic Committee among others.
Obua, in his main address, said that the Government will reduce on funding to Sports among other sectors for this financial year that start on July 1 as they seek to throw more funding to the largely hit Healthy sector.
“The Government is anticipating Shs2trn losses of tax revenue,” Obua stated. “It has been communicated that there will be a unilateral cut to a tune of about 40-50% to mitigate the loss and raise the billions to the Healthy sector for challenges of Covid19 pandemic.”
“There will be a significant budget cut. We all know that around Shs8bn was already cut from what we were supposed to get from the concluded financial year so another 40% cut will be around Sh6.9bn.
“Let us prepare for turbulent times ahead of us. I appeal to you to spend on only critical activities. Plan to cut your respective expenditures as well to 40%. Government has not confirmed the percentage of reduction but I thought it wise to share this information with you.”
Obua added that the Government has already hit the mark for borrowing. It was earlier revealed that the government wants to reduce the borrowing element as a source of Budget financing in this new financial year.
The warnings come at a time when Federations are complaining about little funding and poor allocation of the resource envelope.
It was earlier expected that NCS will receive sh18.5bn as the sports budget for this new financial year, with FUFA taking a lion’s share of Sh10bn while the rest is shared between NCS and the rest of the 50 Sports Federations.
With Sports expected to resume in phases, and without fans, Federations are braced for tough times ahead given that they are required to meet Vaccination and testing costs for athletes, Pay subscription to their international bodies among other requirements.