The East African Community (EAC) Council of Ministers is yet to present its 2020/21 budget proposals to the East African Legislative Assembly (EALA) budget committee. 

The Council of Ministers is required to present its 2020/21 budget proposals to parliament. “According to EAC Budget Act, Eala is expected to receive the tabling of the budget estimates from the Council chair by April 30 this year for consideration and passage before June 30 as required by EAC Treaty.

Missing the annual budget reading deadline for the financial year which starts Wednesday, July 1 could push the trading bloc of the EAC into a financial crisis, thereby crippling operations in the body.

Vincent Biruta, Rwanda’s Minister of Foreign Affairs and International Cooperation who is also the chair of the EAC Council of Ministers during an interview with The East African explained the body’s plans.

“The Council is yet to convene and approve the budget due to the current circumstances related to Covid-19 pandemic, as well as some member countries that need more time to get prepared,”  Biruta said. “We expect the Council to convene as soon as possible.”

According to the council, the EAC budget is funded from annual member contributions as well as external grants. Delay to the reading and adoption of the budget could halt payment of staff salaries, recurrent expenditure and supplies as well as development projects.

The delay of the budget can be attributed to the spread of the coronavirus (COVID-19). The EAC had to witness not just the disruption of flights, but also the closure of borders and businesses.

The death of Burundi president, Pierre Nkurunziza and South Sudan Minister for EAC Affairs, John Luk Jok is another factor which caused some member countries to delay the budgeting process.

More so, the upcoming elections in Tanzania and Uganda have also diverted the attention of member countries, causing further delay.

The EAC Secretary General, Liberat Mfumukeko blamed the current scenario on factors “beyond the Community’s control.

“As for the budget and renewal of contracts, a Council meeting is required. We hope to hold one very soon, possibly next week,” said Mr Mfumukeko.

In highlighting some of the possible consequences of the delay, The East African add

The EAC Secretariat operations stand to bear the outcome. The renewal and termination of staff appointments and contracts, some of which expire on June 30, 2020, and other operations at the Arusha headquarters will have to be put on hold.

Also, the development of regional infrastructure, which was allocated $2.1 million last year, is also likely to suffer delays without a fixed budget in place. 

Subsequently, there will be a disruption in the EAC council and ministerial meetings, Eala operations, employment and replacement of judges and staff at the East African Court of Justice as well as funding of agencies spread across the region.

Meanwhile, before the border closure due to the global pandemic, EAC had set measures to enhance the free cross-border movement of goods and services in the region. Failure to pass the budget on time could delay recovery of EAC declining economies 

The effective implementation of the Common Market Protocol and enhancement of free movement of persons, labour, capital as well as the implementation of commitments on other areas of co-operation as envisaged under the Common Market which was allocated $28.06 million in the 2019/20 financial year, will also be affected.

More so, the enhancement of regional industrial development, agricultural value addition, skills development, technology advancement and innovation to produce economic development, last year got an allocation of $5.8 million.

“The budget is expected to prioritise and allocate funds for various activities including the deployment of the EAC Election Observation Mission to Tanzania whose election is due in October 2020.” The East African stated that this too is hanging on the balance.

However, Abdikadir Omar Aden, chair of the EALA Committee on General Purpose-Budget said through its budgetary function, the Committee on General Purpose-Budget analyses the proposals and makes recommendations before presentation to the Assembly.

“From the look of things, I don’t see the budget passing before June 30 as required by the Treaty. It may have to be sometime in July, depending on when the Council brings the estimates to the House,” said Aden

The EAC council, as well as member states anxiously await the June 30 deadline. The outcome at the end of today will determine the next course of action for the body.

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