1. Preparations for Regional Budget workshops
Ministry of Trade Industry and Cooperatives

2. Overview of the 2017/18 Grant Information and Budget Guidelines
The structure of the presentation is as follows:
Policy priorities/sector objectives
Structure and Purpose of Sector Transfers
Allocation Formulae
Budget Requirements for 2017/18
Other Sectoral Issues

3. Policy Priorities/Sector objectives
Under the NDP II, The Trade Industry and Cooperatives sector will aspire to ensure the promotion of sustainable industrialization and appropriate technology and development to ensure availability of goods and services by expanding and diversifying domestic and export markets

4. Sector Objectives
Increase the share of manufactured goods and services in total exports
Improve private sector competiveness
Increase market access for Ugandan goods and services in the regional and national markets
Improve the stock and quality of trade infrastructure

5. Objectives Cont. Promote the formation and growth of cooperatives
Enhance the capacity of cooperatives to compete in the domestic, regional and international markets.
Increase in diversity in type and range of enterprises undertaken by cooperatives.

6. Structure and Purpose of Sector Transfers
Grant
Purpose
Wage Conditional Grant
At the district level, the proposal is to have offices staffed with a minimum of an agricultural officer, veterinary officer and fisheries officer (where applicable). Including a Commercial Officer
Non-Wage Recurrent (NWR) Conditional Grant
Supports increased input use of fertilizer and improved seed; water for production; disease control, and; and to collect agriculture Supports increased input use of fertilizer and improved seed; water for production; disease control; marketing and to collect agriculture and promote value addition and standards of products to favourably compete in local, regional and international markets, collect trade statistics and others. and trade statistics and others as per the PMG guidelines. The allocation is earmarked to Production and Marketing Grant. (PMG)
Development Grant

7. Key Variables Used in Allocation Formulae
Weighting
Wage
NWR
Dev
Justification
Land Area (Hectares) 5 10
Land suitable for agriculture to an approximate target population for agriculture.
Population 53 63 68
The target population is in both rural and urban area for both agriculture and commercial services.
Population in Hard to Reach Hard to Stay Areas 2
Those areas which are hard to reach are given priority. Island areas are classified as hard to reach and therefore fishing areas are compensated.
Poverty Headcount
Approximates need, with higher poverty levels getting a higher allocation.
Rural Population 30
Most of the people in the rural countryside are engaged in agriculture. Additional weight is therefore given to rural population
Fixed allocation 15

8. Overview of Issues in the 2016/17 budget guidelines and how they were addressed (1/n)
How addressed
MTIC should lobby and advocate for the increase and expansion in resources of the District Trade and Commercial Services Grant and in its coverage to all districts and municipalities
A proposal was submitted to MFPED and beginning this Financial year 2016/17 the grant has been rolled out to cover all districts and municipalities.
The Ministry of Trade, Industry and Cooperatives should advocate for the development of a structure to sufficiently cater for the mandated responsibilities i.e. trade development, promotion, marketing, cooperative development and extension services among others
In April 2016 Cabinet approved a separate department for Commercial services at the district.

9. Implementation Challenges to service delivery
The need for the development budget component of the grant to cater for Transport requirements, Computers, office equipment and furniture.
Inadequate wage provision to cater for at least 1 commercial officer in every district and municipality to implement the mandate.
Inadequate resources to strengthen the capacity of new districts and Municipalities to implement the sector mandate.
“Serving with dignity, pride and joy”

10. Key Policy and administrative Issues for LG attention
MoTIC indicators have been included in the Minimum National Service Delivery Standards and the revised Assessment tool.
Guidelines for the Utilization of the Conditional Grant disseminated.
Self-Awareness on policy and legal framework on Sector for regulation and promotion of Sector (
DCOs recommended for further studies within and outside of the country.
“Serving with dignity, pride and joy”