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NRM Caucus approves Shs450b govt salary increment

Kampala.

Shs450 billion has been earmarked for salary increment for all public servants this coming financial year, a leaked cabinet budget paper later discussed and adopted by the NRM caucus on Friday shows. The figures were presented to the caucus by the junior Finance minister, Mr Gabriel Ajedra.

Ms Evelyn Anite, the NRM caucus spokesperson, confirmed to this newspaper the discussion on the budget. The paper though, doesn’t show details of the Shs450 billion on each individual worker’s pay cheque.

ublic salary increment is one of the new proposals the Ministry of Finance has introduced in the next financial year’s budget projections. The ministry has also introduced tax on all government procurements with a justification that this will remove any distortions and loopholes that arise by not treating government transactions in the same way as that of the private sector.

If this proposal is approved by Parliament, it will mean that with effect from the next financial year, all government sectors will be compelled to present their expenditure estimates at market price for all goods and services.

“URA will not release any goods to any ministries, departments and agencies prior to payment of taxes and in the case of imports, arrangements to pay relevant import taxes must be made timely to avoid inconveniences and delayed access to goods,” the paper reads.

Reading through the new projections, there is a sense that government is seeking to widen the tax base so as to reduce on donor dependence.The budget estimates, which, according to an attached budget process calendar, will be presented to Parliament by April 25, projects the total resource inflows for the next financial year to be at Shs14 trillion, up from last year’s Shs13 trillion.

However, the document indicates that the tax collections for the current financial year will underperform by about Shs300 billion.

Budget EstimatesMinistry AmountWorks and Transport Shs2.5 trillion Energy Shs1.7 trillionEducation and Sports Shs1.6 trillion Health Shs1.9 trillion Security Shs1 trillionICT Shs15 billionTourism Shs68 billionAgriculture Shs440 billion Public Service Shs504 billion

SOURCE: DAILY MONITOR

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