The Government of Uganda, which aims at eradicating poverty by 2015 decided that poverty reduction could best be tackled through a sectoral planning approach. Thus five poverty areas were identified. These are education, health agriculture, water and sanitation and roads.

In the Education Sector, while Primary Education took up 19.8 per cent of the Budget in 1994/95 it now accounts for 26.85 per cent. In monetary terms, spending has gone from Shs.117bn in 1994/95 to Shs.402.4bn for 2000/01, an increase of 343.93 per cent.

Enrolments in primary schools have increased from 5.3 million in 1997 to 6.5 million in 1999. It is projected to rise 7 million 2010. The number of teachers has increased from 94,000 in 19888/99 to 125,000 in March 2000.

• The Health Sector now accounts for 7.6 per cent of the budget. In 1994/95 the amount spent on health was Shs.47.4bn. This has increased by 240 per cent to Shs.113bn.

• The budget for the roads sector in now 9.2 per cent of the total budget compared to 4.4 per cent in 1994/95. The outlay has increased by 533.72 per cent from Shs.25.8bn in 1994/95 to Shs.137.7bn in 2000/01.

• A plan for modernisation of Agriculture (PMA) is in the process of being finalised. Due to various factors the share of agriculture in the total Budget has come down from 2.6 per cent in 1994/95 to 1.6 per cent in 2000/01. However the outlay in monetary terms has increased from Shs.15.1bn to Shs.24.1bn during the same period. By 2002/03 the allocation would have increased significantly to Shs.32.6bn.

• The share of the budget for defence has come down from 19.6 per cent in 1995/96 to 14.0 per cent in 2000/01 Budget. This represents a significant shift in resource allocations.

• In 1997/98 a total of Shs.225.23bn was transferred to Local Governments in the form of various grants. This has increased to Shs.510.69bn in the current financial year an increase of Shs.285.46bn in just two years. This will further increase to Shs.648.06bn by 2002/03.

• All the funds that will be available as a result of the Highly Indebted Poor Countries (HIPC) initiative are being channelled to Local Governments in form of Poverty Action Fund (PAF) programme. Local Governments now have an immense responsibility thrust upon them to implement programmes to reduce poverty in the country.