Domestic Revenue Projected to Increase in 2024/25 Financial Year- Finance Ministry

Prime Minister Robinah Nabbanja has said that the government of Uganda with the support of Development Partners, the Private Sector and Civil society has put in place the environment and key interventions to drive the desired economic growth.

“As we start the planning and budgeting process for FY 2024/25, our task is to ensure we are all committed to the efforts of lifting the 39% of the population from the subsistence economy,” said the Premier on Thursday while opening the National Budget Conference FY 2024/25 held at Kampala Serena Hotel.

She said the government will continue to guarantee peace and security as well as ensure the protection and promotion of fundamental and other human rights and freedoms.

“Working through the Parish Development Model, Emyooga, provision of financial services through the Microfinance Support Centre and other village-based technologies such as the Nyakana model, we shall be able to create more jobs and wealth,” she noted.

The goal of the Budget Strategy is to accelerate economic growth by at least 7%, through a shift from a raw-materials-based to a manufacturing and knowledge-based economy.

Finance Minister, Matia Kasaija, said the budget for FY 2022/23 achieved tremendous progress in light of recovering the economy from Covid-19 impact.

According to him, the economy grew at 5.5% in FY 2022/23 compared to 4.6% in FY 2021/2022, better than average Sub-Saharan Africa’s growth rate of 3.6% estimated for calendar year 2023.

He said to accelerate economic growth, the budget for FY 2024/25 will focus on building an integrated, independent and self-sustaining economy through ensuring security, good governance and rule of law, maintaining macroeconomic stability, boosting household incomes (PDM), commercialization of agriculture  Developing oil and gas industry and petrochemical industry, developing mineral sector investment in tourism, supporting private sector growth and investing in People (health, education, water) as well as revamping stock of quality infrastructure.

Other areas of focus in the budget for FY 2024/25 are investment in science, innovation, research and development, industrial development and manufacturing, digital transformation and automation of the economy public sector effectiveness and accountability addressing factors of production (capital, land, labour and entrepreneurship) as well as climate-smart agriculture.

“We must work together with all of you stakeholders to build an independent and self-sustaining economy,” Kasaija stated.

He urged all Accounting Officers to be at the forefront of ensuring efficient and effective implementation of the government’s plans as well as timely reporting and accountability of results.

He also urged Ministers to provide strategic leadership to their portfolios and programmes during the next FY to ensure compliance with the NRM government’s objectives.

According to the Ministry of Finance, the Preliminary Domestic Revenue is projected to increase to Shs 29,957.9 billion in FY 2024/25 from Shs 29,672.3 billion. The Total Resource Envelope for FY 2024/25 amounts to Uganda Shs 52,722.7 billion.

Due to debt servicing costs, the resources available for allocation have reduced to Shs 21,734.2 billion for FY 2024/25 from Shs 25,205.2 billion this FY.