Summary:

• The government has unveiled a Shs52.7 trillion budget for the next fiscal year, emphasizing improved revenue collection, controlled borrowing, and prioritizing key sectors for economic growth, with Finance State Minister Henry Musasizi projecting a 6 percent GDP growth and relatively low inflation.

The government has revealed a budget of Shs52.7 trillion, earmarked to finance the country’s programs and services in the upcoming fiscal year. Initially set at Shs49.9 trillion for the current fiscal year, the budget was later revised to Shs51.9 trillion. The recently presented Budget Framework Paper, laid before the House, outlined the Ministry of Finance’s commitment to curbing the government’s extravagant spending.

The State Minister for Finance, Mr. Henry Musasizi, outlined the government’s strategy to fund the budget, emphasizing improved revenue collection and controlled borrowing. He expressed a commitment to deepening fiscal consolidation through efficient public expenditure, reduced debt servicing costs, and support for economic transformation. Additionally, alternative financing methods, such as climate financing and capital markets, will be explored.

Mr. Musasizi highlighted the government’s priority areas, including investments in the people of Uganda, peace and security, as well as infrastructure development such as roads and electricity regeneration. The government aims to focus on income-generating investments and effective natural disaster management. The minister also mentioned President Museveni’s guidance in shaping these priorities.

Looking ahead, the government envisions growing the economy tenfold in 15 years, with a focus on sectors like tourism, agro-industrial development, mineral-based industries, oil and gas development, including petrochemical industries, and the knowledge economy.

Speaker Anita Among urged the Ministry of Finance to present the budget framework paper early for scrutiny by parliamentary committees. All government ministries, departments, and agencies will be required to present their planned expenses to line parliamentary committees, which will then submit reports to the House Committee on Budget. Tax amendment Bills are also expected to be tabled, defining the tax regime for the upcoming financial year.

Finance State Minister Henry Musasizi shared economic projections, anticipating a 6 percent growth by the end of FY2023/24, 6.5 percent in FY2024/2025, and at least 7 percent over the medium term. He expressed optimism about relatively low inflation compared to previous months, citing a decrease from 10.7 percent in October 2022 to 2.6 percent in November 2023. Musasizi expects inflation to remain within the policy target of 5 percent over the medium term, supported by coordination between monetary management and fiscal policy.