SOCIAL PROTECTION SECTOR IN UGANDA: Is it a priority in the recent National Budgets? By John Bosco Mubiru 1

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1 SOCIAL PROTECTION SECTOR IN UGANDA: Is it a priority in the recent National Budgets? By John Bosco Mubiru In recent years, Uganda has demonstrated progress in poverty eradication. This is evidenced in a number of policies and programmes that have been formulated and implemented in the past years to eliminate vulnerability and poverty. According to studies beginning in the 1990 s, Uganda has consistently registered progress in reducing poverty in its people from 56% in 1992/2003 to 19.7% in 2012/13. However, despite this progress, there are still vulnerable and disadvantaged categories of people who are still poor. These include elderly, widows, unemployed youth, orphans and other vulnerable children, persons with disabilities and the chronically poor. These categories of people have found it hard to access government programmes targeting poverty reduction due to their social status, lack of skills, information and other incapacities. Meanwhile, several studies in Uganda and across the World indicate that such categories can be lifted from poverty once they are supported through provision of social protection interventions especially direct income support. Although Uganda has continuously prioritized social protection as reflected in many policies and plans like in the Second National Development Plan (2015/ /20) and the Vision 2040, the sector has remained the least funded among government priorities over the years as discussed in the following paragraphs. On the 11 th June 2015, Minister of Finance, Planning and Economic Development presented a budget speech delivered at the meeting of the fifth session of the 9 th Parliament of Uganda. The UGX 24trillion 2 Uganda National Budget financial year 2015/16 indicates that, the Government of Uganda has continued to prioritize infrastructural development as reflected in the key funded sectors Works and Transport (UGX. 3.2 trillion 13.3% of total budget), Energy UGX. 2.7trillion -11.3%), Security/ Defence (UGX. 1.5 trillion 6.3%) and Health Sector (UGX. 1.2 trillion 5%). The government s focus on the infrastructural development is aimed at enhancing regional integration and developing the Oil sector. In the 2015/16 financial year, the Social Development Sector where Social Protection falls was allocated only UGX.79.9 billion (0.3%) of the total budget). 1 John Bosco Mubiru is a Social Protection Specialist based in Kampala, Uganda. Contacts -mubosc2006@yahoo.com 2 UGX Uganda Shillings (1 USD= 3348 Uganda Shillings)

2 Similarly, in the financial year 2014/15, the Social Development Sector was the second least funded sector after Information, Communication and Technology (ICT) although with a slight allocation of 0.1% to 0.4% of the total budget. In the financial year 2013/14, the sector was the third least funded with about 0.4% of total budget. Referring to the previous three financial year budgets, it can be concluded that the Social Development Sector where Social Protection lies is not yet a priority as evident in the budget allocations. The Social Development Sector is under the Ministry of Gender, Labour and Social Development (MGLSD). The Ministry of Gender, Labour and Social Development is lead agency on social protection and coordinates all Social Development Sector actors and activities to ensure effective programming and resource utilization towards sustainable development. A key aspect of the ministry s mandate are the rights and needs of vulnerable and disadvantaged populations such as women, youth, Orphans and other Vulnerable children (OVCs), the elderly, persons with disabilities and the chronically poor. Therefore, the sector works to strengthen communities rights and social protection provision. The major focus of the sector is to empower communities to harness their potential through cultural growth, skills development and labour productivity. The Ministry of Gender, Labour and Social Development works with other Ministries and Government Agencies including but not limited to Ministry of Finance, Planning and Economic Development (National Social Security Fund), Ministry of Public Service (Public Service Pensions Scheme), Office of Prime Minister (Public Works Schemes), among others. The Ministry currently implements social protection-like interventions such as Social Assistance Grant for Empowerment (SAGE), Special Grant for Persons with Disabilities, Orphans and other vulnerable children programmes, youth livelihoods programme, among others. Despite these developments, social protection coverage among the Ugandans is still low. It is approximately 3% of the population with access to formal social protection. Only 2.8% and 2.3% of the working population is covered by Public Service Pension Fund and National Social Security Fund (NSSF) respectively. There are also a number of small private social protection interventions though with minimum impacts. The limited coverage has resulted into a high level of vulnerability to shocks and persistent poverty. Policies, strategies and plans indicate that the Government of Uganda continues to prioritize social protection as a critical tool for inclusive development. This includes the 1995 Constitution, the Uganda Vision 2040, Social Development Sector Strategic Investment Plan (SDIP) 2011/ /16 and the recently launched Second National Development Plan (2015/ /20). The 2 nd National Development Plan (NDP) 3 recommends broadening social 3 However, the second NDP prioritizes investments in Agriculture, Tourism, Minerals, Oil and Gas, infrastructure and Human Development.

3 protection and support systems. The plan further highlights that the Social Development Sector targets for the next 5 years include increasing the number of vulnerable people accessing social protection to 3 million by Over the 2 nd NDP implementation period, the Social Development Sector will improve resilience and productive capacity of the vulnerable persons for inclusivity through: Expanding the scope and coverage of the social security services to include the informal sector; Expanding labour intensive public works to poor and vulnerable households; Promoting access to social care and support services including OVC, PWDs and older persons; Promoting and protecting the rights of vulnerable groups and strengthening the scope of Social Assistance Grant for Empowerment (SAGE) to vulnerable groups. Public financing of social protection interventions has remained low over the years in Uganda. The current government spending on social protection is largely on Public Service Pensions Scheme (PSPS) which is currently fully funded by the government of Uganda. It stands at 0.4% of the GDP. The 2015/16 Uganda National budget allocated Pensions and Gratuity UGX billion making it the 9 th key funded priority. This is mainly because of the outstanding gratuity arrears in the previous financial years. The public spending on direct income support also stands at only 0.4% of the GDP which is significantly lower than the 1.1% of the GDP that which is spent on average by other lower income countries. However, it should be noted that 2013 estimates indicated that 42% of funding for social protection in Uganda is from donor agencies, 35% from the government of Uganda and 23% from individuals 4. The Ministerial Policy Statement FY 2015/16 for the Social Development Sector submitted to the Parliament of Uganda for debate recognizes social protection for the vulnerable persons as one of the prioritizes for funding. The interventions identified are Social Assistance Grant for Empowerment (SAGE); Youth Livelihood Programme (YLP); Disability and Elderly and Youth and Children Affairs. It is worth noting that the Ministry of Gender, Labour and Social Development prioritized social protection interventions in the financial year 2015/16. This is evident by how much the social protection component has been allocated (67.41% or billion) compared to the other activities Community mobilization and Empowerment (3.22%), Mainstreaming gender and rights (4.37%), Labour productivity and employment (7.67%) and Policy planning and Support services (17.33%). Within the social protection component, the government has allocated more funds to the Youth Livelihoods Programme (UGX.33billion) compared to other programmes such as Social Assistance Grant for Empowerment (9 billion), Youth and Children (5.675 billion) and disability and elderly (1 billion). It should also be noted that there is always less funds released by the Ministry of Finance, Planning and Economic Development compared to the approved budget. For example, in the financial year 2014/15, only 88.2% of the approved budget was released and spent on social protection by end of December The 2014 Uganda Social Protection Sector Review.

4 From the above paragraphs, there has been a slight increase in financing social protection interventions as indicated by the previous Uganda National Budgets. For example, referring to the Social Development Sector budgets, in the financial year 2014/15, UGX.8.252Billion was allocated to Social Protection for the vulnerable people. The department of disability and elderly was allocated UGX Billion, department of youth and children affairs was allocated UGX Billion Whereas the Social Assistance Grant for Empowerment (SAGE) project was allocated UGX Billion. The biggest budget was allocated to the SAGE project that is supporting the vulnerable and older persons with monthly direct income support. SAGE is a direct income support programme that has proven to improve the welfare of poor and vulnerable families in Uganda. This therefore calls for the government s increased financial allocations as well as prioritizing the programme in the national and Social Development Sector budget. The SAGE is currently being scaled up to new 40 districts in the next 5 years after successful pilot in 15 districts 5. The programme started in July 2010 after the Cabinet s approval of implementing the Expanding Social Protection (ESP) Programme under the Ministry of Gender, Labour and Social Development. The programme is supported by development partners (DFID, Irish Aid and UNICEF) and the Government of Uganda. SAGE is key part of the ESP programme with regular monthly grants of UGX.25,000/= paid through MTN mobile money agents. The programme piloted two social protection instruments Senior Citizens Grant (SCG) and Vulnerable Family Grant (VFG). It is further reported that between 2010 and 2015, the programme covered 123, 153 beneficiaries disbursing a total of UGX.87.2Billion in grants to beneficiaries over the 5 years. During the SAGE pilot phase, the government of Uganda entered into a Memorandum of Understanding (MOU) with development partners to provide counterpart funding of the Expanding Social Protection (ESP) Programme. In the financial year 2011/12, the government committed itself to provide USD 50,000 plus in-kind support estimated at UGX 6 billion over the 5 years of project implementation. In the financial year 2011/12, the government contributed only UGX.30 million of the UGX.125 million committed. In financial year 2012/13, SAGE was allocated only UGX.39.5 million and in the financial year 2013/14 and 2014/15 a total of UGX.2 billion was allocated to finance the programme in Yumbe district in addition to the 14 pilot districts. Looking at the MOU, the government of Uganda did not fulfilled the terms of counter funding the SAGE programme despite the increase in allocations from 2011/12 to 2014/15. 5 Kyenjonjo, Nebbi, Zombo, Kyegegwa, Kiboga, Kyankwnazi, Apac, Kole, Katakwi, Kaberamaido, Moroto, Napak, Nakapiripirit, Amudat and Yumbe districts

5 Owing to the success of the SAGE pilot programme, Development Partners have expressed interest to provide another five years of support for Expanding Social Protection (ESP) programme second phase with UGX. 290Billion between July 2015 and June This will include funding to the existing 15 districts till government of Uganda takes over fully and the operating costs associated with the national roll-out in the new 40 districts. The Ministry of Gender, Labour and Social Development proposed to roll-out to 100 oldest beneficiaries per sub-county increasing by 30% in the subsequent years with ultimate plan of covering the whole country. The proposal was as result of budget constraints which could not allow the allocation of UGX 33.7 billion required to roll-out the Senior Citizens Grant to all districts in Uganda. This left a funding gap of UGX billion hence roll-out in phased manner until when the whole country will be covered. The Government of Uganda has committed UGX 149 billion to SAGE for the next 5 years. In the financial year 2015/16, the government has an allocation of UGX 9 billion for the national rollout 6 of the Senior Citizen Grants. This will be followed by UGX billion 7, UGX billion 8, UGX billion 9 and UGX billion 10 in the subsequent financial years. This commitment indicates that the government of Uganda is recognizing the role of social protection for inclusive development. However, there is need for the government to learn from the rest of African regional countries such as South Africa, Kenya, Mauritius, Zambia, etc. to prioritize social protection programmes through increased budget allocations that will allow implementation of various social protection programmes such as child support grants and disability grants that have proved working worldwide. Last but not least, the Government of Uganda should prioritize the implementation of the Uganda National Social Protection Policy that was approved by the Cabinet in The presence of the approved comprehensive policy limits the citizens higher risk of vulnerability because there is guarantee that the government will finance social protection interventions. It further makes the available interventions to be viewed as social entitlements or rights to citizens. Therefore, the presence of the Social Protection Policy will play an integral role in empowering and ensuring that citizens can demand their social protection entitlements. 6 Kaabong, Abim, Kotido, Koboko, Gulu, Pader, Agago, Lamwo, Amolatar, Pallisa, Amuria, Kween, Namayingo, Mayuge, Kamuli, Kayunga, Nakasongola, Kibaale, Kisoro and Bundibugyo. 7 Kitgum, Nakaseke, Kabale, Bugiri, and Amuru. 8 Dokolo, Sembabule, Kasese, Sheema and Mubende. 9 Alebtong, Adjumani, Otuke, Moyo and Kumi. 10 Nwoya, Arua, Mbale,Tororo and Kibuku.

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