Mainstreaming Climate Change in the National Budget: Memorandum of Issues from the Review of the Budget Framework Paper FY 2021/2022

The fourth report of the Inter-Governmental Panel on Climate Change (IPCC) highlights developing countries such as Uganda as the most vulnerable to climate change effects. This is mostly due to the limited capacity to cope with climate change impacts such as floods and prolonged dry spells in developing countries. Uganda’s third National Development Plan (NDPIII 2020/21-2024/25) flags climate change as one of the persistent challenges to development. In addition, the Mid-Term Review of the second National Development Plan (NDPII 2015/16-2019/20) attributed the failure to achieve the plan’s targets on economic growth, employment, export volumes and income poverty to climate change effects. Therefore, the integration of climate change in development planning and budgeting processes is significant in supporting the realisation of development goals and objectives espoused in the third National Development Plan 2020/21- 2024/25 and Uganda Vision 2040. Whilst there has been remarkable progress in integrating climate change concerns in planning at different levels of government, the budgeting process at national and sub-national level is still deficient in terms of appropriating financial resources to planned climate change interventions. This continues to derail climate change responses yet the severity of its effects is increasing by the day. This policy memorandum therefore analyses the extent to which climate change is integrated in the National Budget Framework Paper (NBFP) for Financial Year 2021/2022. This will inform policy and the final budgetary appropriations for climate change interventions in key NDPIII Programmes.