Domestic revenue projected at shs29t in the next financial year – minister Kasaija

Last Updated on: 15th September 2023, 11:08 pm

Kampala | The Ministry of Finance, Planning and Economic Development on Thursday, September 14 launched the 2024/2025 national budget process with the utmost key goal of boosting the economy by at least 6 per cent during the year and 7 per cent in the medium term.

Financial year 2024/25 will run under the theme: “Full Monetization of Uganda’s Economy through: Commercial Agriculture, Industrialization, Expanding and Broadening Services, Digital Transformation and Market Access.”

The launch comes at a time when Uganda is experiencing some uncertainty over the growing differences with development partners led by the World Bank, which has announced the suspension of new loans over human rights concerns upon Uganda passing the Anti- Homosexuality Law 2023.

While officiating at the National Budget Conference held at Serena Hotel in Kampala, Prime Minister, Robinah Nabbanja said the NRM government under the stewardship of President Yoweri Museveni together with the support of Development partners, the private sector, and the civil society has put in place the environment and key interventions to drive the desired economic growth.

“As we start the planning and budgeting process for the financial year 2024/25, our task is to ensure we are all committed to the efforts of lifting the 39 per cent of the population from the subsistence economy to the money economy,” Premier said.

She also emphasised the government’s commitment to guaranteeing peace and security as well as ensuring the protection and promotion of fundamental and other human rights and freedoms.

According to Premier Nabanjja, working through government initiatives among others; the Parish Development Model, Emyooga and provision of financial services through the Microfinance Support Centre and other village-based technologies such as the Nyakana model shall be avenues of enhancing household incomes through the creation of more jobs and wealth.

Finance Minister Matia Kasaija said all underlying plans will be achieved through a shift from a raw material to a manufacturing and knowledge-based economy by improving the environment of doing business in Uganda and making it more competitive.

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According to him, the preliminary domestic revenue is projected to increase to shs29.958 trillion in the next financial year from the current year’s target of shs29.672.3 trillion, while the total resource envelope projection amounts to shs52.72 trillion.

While the external sources of budgetary support could further reduce, Kasaijja told the conference, adding the government is also putting in place and implementing strategies to reduce the public debt stock through reduced borrowing, going for more concessions as opposed to commercial loans as well as increasing domestic revenue mobilisation.

As it stands, estimates show that the nominal stock of the public debt increased from shs78.833 trillion ($21 billion) at the end of June 2022 to shs86.78 trillion ($23.6 billion) at the end of June 2023, according to Minister Matia Kasaija.

He said the budget for the year 2022/23 achieved “tremendous progress” in light of recovering the economy from COVID-19 impact, growing at 5.5 per cent compared to 4.6 per cent in 2021/2022 an achievement he said was better than the average Sub-Saharan Africa growth rate of 3.6 per cent estimated for the calendar year 2023.

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Kasaija further said the next budget will focus on building an integrated, independent, and self-sustaining economy by ensuring security, good governance, and the rule of law, maintaining macroeconomic stability, boosting household incomes through the Parish Development Model and commercialization of agriculture. 

Other areas are the oil and gas and petrochemical industries, the mineral sector, investing in tourism supporting private sector growth, and investing in human capital, among others.

The government now plans to strengthen and draw their investment towards Science, Innovation, Research and Development, Digital Transformation, and Automation of the Economy and Public Sector effectiveness and accountability, especially by addressing factors of production line capital, land, labour, and entrepreneurship as well as climate-smart agriculture.

“We have put aside $354 million for mechanisation, multiplication and research, scaling up small-scale solar power use among others,” Kasaijja added.

He also gave an account of what the government has done in response to the concerns raised by leaders including the civil society in the last budgeting process that included rationalisation of government ministries, departments and agencies, increasing domestic revenue, and managing debt among others.

Meanwhile, to achieve economic growth, the budget for FY 2024/25 will focus on building an integrated, independent, self-sustaining economy through ensuring security, good governance; rule of law, maintaining macro-econ stability, commercial agriculture, and developing the oil and gas industry.

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