By eastafrican gazette
The Minsitry of of Finance and Economic Development has explained how the private sector will benefit from the Uganda shs72 trillion 2024/2025 budget.
The Secretary to the Treasury Ramathan Ggoobi mentioned that funds have been designated for government wealth creation projects and skills development, particularly targeting the youth.
In the upcoming financial year, resources will be allocated towards initiatives such as commercial agriculture, value addition, and the Parish Development Model to integrate more individuals into the money economy.
Additionally, he noted that the Uganda Development Bank (UDB) has been strengthened to offer affordable capital to assist enterprises, along with funding for programs like Emyooga and the Agriculture Credit Facility (ACF) totaling Uganda shs2.64 trillion.
Furthermore, investments will be made in youth training and support for small-scale businesses, in collaboration with the Private Sector Foundation of Uganda (PSFU) to facilitate the growth of women-owned businesses into formal entities.
He said the private sector including banks need to align to support and benefit from key budget themes including agro industrialisation, mineral development, and tourism ecosystem among others.
This was during the post budget dialogue organised by the Absa Bank Uganda, at Serena Hotel, Kampala.
Ggoobi emphasized the importance of allocating funds to prioritize the well-being of the people of Uganda in the Financial Year 2024/25.
This includes investments in education, health, water, and sanitation, with a budget of shs10.2 trillion.
He also noted that there is a significant allocation of shs9.1 trillion for peace and security, and shs5 trillion for the maintenance of infrastructure, among other priorities.
According to Ggoobi, the primary source of funding for the financial year 2024/25 budget is domestic revenue, including both tax and non-tax revenue, amounting to shs32 trillion. Additionally, budget support is expected to contribute shs1.4 trillion, while domestic borrowing is projected to provide shs 9 trillion. Other sources of revenue include petroleum funds and Local Government revenues, totaling shs 294 billion.
Allan Ssenyondwa, the Policy and Advocacy Manager at Uganda Manufacturers Association (UMA), emphasized the importance of shifting the government’s focus from the macro level to the micro level.
He acknowledged the government’s positive priorities for the next financial year, highlighting the need for a more detailed and targeted approach.
“The manufacturing sector is producing at 54%, how about if we shift the level of production to 80%? People forget to tell you that some manufacturers are exiting the Ugandan market. What we have to do is to ensure that we have an inclusive economy,” he added.
The Managing Director of Absa Bank Uganda, Mumba Kalifungwa, emphasized the significance of the National Budget for the Financial Year 2024/25 in driving Uganda’s economic progress.
He stressed that the budget will play a pivotal role in shaping fiscal policies and determining the government’s priorities for revenue generation and expenditure in the upcoming year.
Kalifungwa expressed appreciation for the government’s dedication to boosting economic growth and creating a conducive environment for sustainable development.
He highlighted the importance of the key areas outlined in the 2024/25 National Budget for the nation’s advancement.
He mentioned that despite a slowdown in quarter-on-quarter growth, the economy has shown resilience and is expected to grow at 6%.
He stressed that looking at the global landscape, there are still uncertainties surrounding the effects of geopolitics, international commodity prices, weaker global growth, global inflation, and monetary policy responses on our economy.
Sarah Chelangat, the Commissioner of Domestic Taxes at Uganda Revenue Authority, clarified that over the past three years, the government has prioritized tax administration instead of implementing new taxes.
She emphasized that this approach will persist throughout the financial year 2024/25.
She stressed that URA will also leverage digitalization to access third-party data, enabling us to provide valuable guidance to taxpayers.
Chelangat noted that the implementation of advanced technologies such as the Electronic Fiscal Receipting and Invoicing Solution (EFRIS) will facilitate the automation of tax returns, providing a comprehensive overview of sales and the net VAT owed to the government, saying that this will undoubtedly benefit our nation.
She noted that as part of this effort expand the tax base, URA is establishing new stations in various regions across the country, including Kisoro, Ntungamo, and many more.