The 41st Extraordinary Meeting of the EAC Council of Ministers on the agenda; Budget for the EAC for the Financial Year 2020/2021 & Human Resource matters. PHOTO//Twitter/@jumuiya

The East African Community Council of Ministers has passed over $90 million us dollars as approximations for the 2020/2021 financial spendings.

A statement seen by Eye Radio notes that the regional council of Ministers on Friday adopted $97.6 million budget estimates to cater for the work of the East African Community Secretariat, East African Legislative Assembly and the East African Court of Justice.

It will also fund recurrent and development expenditure for the current financial year. The financial year runs from July 1, 2020, to June 30, 2021.

Among the priorities for the budget are; addressing the issue of Single Customs Territory within partner states, and others.

“The council, at its 41st extraordinary meeting adopted the $97.6m budget that will cater for three EAC organs and institutions’ recurrent and development expenditure for the current financial year,” the secretariat announced.

Partner states are expected to contribute $55.6 million, while development partners will contribute $41.9 million.

During the 2020/21 budget implementation, the East African Community is expected to also focus on infrastructure development in the region.

These include; enhancing free movement of all factors of production and other areas of co-operation across partner states as envisaged under the common market and monetary union protocols.

The economic bloc is also expected to enhance regional industrial development through investment in key priority sectors, skills development, technological advancement and innovation to stimulate economic development.

Other key priority areas include improvement of agricultural productivity, value-addition and facilitation of movement of agricultural products to enhance food security in the region.

The East African Community Secretariat stated that the money will also tackle the promotion of regional peace, security and good governance, and institutional transformation at the regional and partner state levels.

Meanwhile, the Council of Ministers also approved the 2020/2021 financial year expenditure budget estimates of $2.7 million for the Civil Aviation Safety and Security Oversight Agency.

It further agreed that each Partner State will contribute $458,910 through their Civil Aviation Authorities towards the 2020/2021 budget estimates.

The new financial year budget was adopted during a one-day video-conferencing meeting attended by Ministers and representatives from Partner state, including South Sudan Minister of East African Community Affairs, Deng Alor.

It is now expected to be tabled before the East African Legislative Assembly for debate and approval anytime this month.

Financial remittance problems

The activities of the bloc have, however, been threatened by late remittance of financial obligations by the Partner States.

Among the biggest defaulters are South Sudan and Burundi.

According to the EAC Legislative Assembly, the status of contributions and total outstanding obligations owed by South Sudan to the region is $27,803,700.

Burundi owes $15,089,355.

The biggest sustainers of the activities of the bloc have been Kenya and Uganda.

Kenya is yet to contribute $1,975, Uganda: $1,598,670, Rwanda: $2,788,429; and Tanzania: $4,201,845.

“If one Partner State delays or withholds remittances, then there is a subsequent shortfall and repercussions felt. This is, unfortunately, becoming the new normal and there are now activities been suspended owing to lack of funds,” said Honorable Dr Abdulla Makame, a legislator at EALA.

In June, the assembly urged the Council of Ministers to recommend to the Summit of EAC Heads of State to sanction the Partner States that are in default – especially by Republics of Burundi and South Sudan.

They threatened the suspension of South Sudan and Burundi from the economic bloc.