The Finance Ministry has tabled a budget of Ush18.4trillion (about $6billion) to Uganda’s Parliament to be collected and spent in the next financial year 201516.
Speaking to the media in Kampala, Aston Kajara the Minister of State for Finance in Charge of Privatization said domestic revenuesresources will amount to Ush12.5trillion a percentage change of 0.89% over this financial year 201415 set to be concluded in May.
Uganda Revenue Authority has been given a target to collect Ush11.03trillion with other resources coming from non-tax revenues amounting to Ush271billion and domestic borrowingfinancing of about Ush1.5trillion. If the Budget is approved by parliament, loan repayments will jump to Ush327billion to Ush139billion over the previous financial year.
The government expects a 35.6% reduction in External Budget Support to around Ush44.4billion from the Ush69billion they got the previous financial year.
In project support, the government expects to borrow about Ush4.5trillion externally to support the construction of Karuma Dam, Isimba Dam and the commencement phase of the Uganda oil refinery whose construction was given to a Russian Consortium.
“What I want the media to emphasize is parliament’s consideration and approval of the annual budget of the next financial year by the 31st of May of each year compared to 30th October in the previous law,” Kajara told a news conference.
He said the enactment into law of the Public Finance Management Act 2015 provides for the effective, transparent, credible and predictable process for preparation, approval and overall management of the National budget.
“Other objectives provided for in the law include requirements for sound macroeconomic management, procedures for management of supplementary budgets and the establishment of the Contingency Fund,” said Kajara.
Patrick Ocailap the Deputy Secretary to Treasury said the recurrent expenditure will be around Ush8.7trillion. This will be a 9.46% increase over this financial year 201415.
About 2.9trillion will go to payment of wages, the non-wage bill will amount to Ush4trillion while statutory interest payments will be Ush1.7trillion.
According to Ocailap, the development expenditure will be lifted by 31.53% to Ush9.3trillion. they propose that government expenditure drops to Ush3.7trillon from Ush4.4trillion this financial year.
Kajara lauded the Uganda Revenue Authority for collecting Ush9,546 billion, a performance of 99.7% against the approved Fy201415 budget.
Meanwhile, Aon Insurance Uganda has set its eyes on the multi-billion Karuma Hydro power project to offer risk consultancy services on its underground access channels as well as the access roads. According to Maurice Amogola, the Chief Executive Officer (CEO) of Aon Uganda said their long presence has enabled them to gain a deep understanding of the market.
Source : East African Business Week