East African Community (EAC) has revised the 2008/09 Budget allocating more money to the planning and infrastructure directorate.

The budget was passed last week by the East African Legislative Assembly (EALA) at East African Community Legislative Chambers in Arusha.

The law makers had on the 15th of May rejected passing the budget, saying it was not aligned with the development strategy of the economic bloc. The legislatures also argued that some key sectors were under funded.

The new budget allocates planning and infrastructure directorate, seen as crucial in economic development of the bloc  more $2.8 million. This represents 57 per cent increase in funding compared to the previous budget.

Last year the planning and infrastructure directorate was allocated $2,152,276. But this year it has shot to $5,024,865.

Customs and trade directorate has received more $2.2 million increasing the budget from $1.532,733 to $3,371,886 this year. This is a 60 per cent increase in funding.

"Special attention has been given to commensurate budgetary provisions for priority areas such as the Customs Union, Common Market, and Monetary Union as was stressed by the General Purpose Committee in Nairobi,” Eriya Kategaya, Chairman EAC Council of Ministers said of the budget.

Development partners and the five partner states including Rwanda, Burundi, Tanzania, Kenya and Uganda are to fund the budget. 

Part of the $40 billion—total budget of the EAC is meant to enhance infrastructure development, agriculture production and industrial development in the region. The money will also help in re-branding the EAC and political federation.

"This year’s budget is reflecting a higher donor component of the EAC financing. This manifests growing interest and support to the EAC’s integration process which is deepening. However, the Council has noted the need for increased funding by the Partner States so that there is lesser dependence on donors,” Kategaya who is also the Uganda’s minister for East African Affairs noted.

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