The committee of parliament on National economy has implored key institutions involved in economic management to hold a conference on the way forward for Uganda economy and build a resilient’ integrated and self-sustaining economy’ to reduce on country’s borrowings.
Recommending Government to borrow Shs. 736 billion from the domestic financial market to finance the budget, the committee chaired by Nakaseke North County legislator Bbumba Syda Namirembe noted that they should put in place a holistic development strategy. Hitherto, implementation of the National Development Plan (NDPII) remains very weak.
“The proposed funds will be used to finance the on-going infrastructural projects whose certificates will fall due this financial year and statutory obligations such as wages and interest payment.” The report reads in part.
Further advised government to increase sources of tax revenue through a combination of measures for improvement of tax administration, widening the tax base, and providing conducive environment for growth of private enterprises.
Last year government approved Shs 29.008 Budget for financial Year 2017/8 of which the Government of Uganda Budget is expected to contribute Shs 21.175 Trillion, External Financing Shs 7.075 Trillion and Appropriation in Aid Shs 0 .757 trillion.
However due to shortfalls in the projected revenue collection and additional expenditure pressures that have resulted into fiscal adjustments and limited options for cutting the budget, government has opted to acquiring of loans to to fund various projects which include roads.
The report indicates that the country has registered short fall in revenue collection of Shs 167 billion in this financial year due to lower import, aggregate demand and Tax exemption on husked Rice. If acquired, it will increase Uganda’s current debt of $ 11.3billion.