The Minister of Finance, Planning and Economic Development, Hon. Matia Kasaija, has said that the 2023/2024 Budget will support Uganda’s transformation from a raw materials-based economy to a manufacturing and knowledge-based economy since it promotes value addition, business growth, and job creation for the youth, women and all Ugandans.
“The NRM Government has laid a strong foundation to accelerate the socio-economic transformation for all Ugandans. The Budget for next Financial Year 2023/2024, therefore, has been prepared to advance this strategic mission,” Hon. Kasaija said while presenting to Parliament on behalf of His Excellency the President estimates of revenue and expenditure for the Financial Year 2023/2024.
Running under the theme: “Full Monetization of Uganda’s Economy through Commercial Agriculture, Industrialization, Expanding and Broadening Services, Digital Transformation and Market Access”, next Financial Year’s budget (Shs52.7 Trillion) was approved by Parliament on 18th May, 2023.
Hon. Kasaija assured that Uganda’s economy has remained resilient and is on a steady recovery path. He noted that the economy this year is projected to have grown by 5.5% compared to 4.6% last year.
“This year’s performance compares favorably with the average growth rate for Sub-Saharan Africa estimated at 3.6% for calendar year 2023. The size of the economy is estimated at Shs. 184.3 trillion, compared to Shs. 162.9 trillion last year. This is equivalent to US$ 49.4 billion compared to US$ 45.6 billion last year,” the Minister said.
“This expansion is on account of good performance of the Services sector which grew at 6.2%, compared to 4.1% in the previous year. Agriculture has also performed strongly, growing by 5.0%, despite the dry spell in the first quarter of the financial year. In particular, food crops, livestock and fishing performed well. Industry grew at 3.9%, driven largely by manufacturing and construction activities, especially in the oil and gas industry.”
Hon. Kasaija also divulged that inflation is reducing steadily on account of well-coordinated fiscal and monetary policy.
“Inflation has significantly decreased since October 2022 when it peaked at 10.7%. Last month, the pace at which prices were rising slowed down to 6.2%. Prices of key items such as soap, sugar, fuel at pumps, among others, have significantly reduced.”
By April 2023, the Minister explained that Uganda’s exports of merchandise goods amounted to US$ 4.2 billion compared to US$ 3.1 billion over the same period last financial year.
According to Hon. Kasaija, this represents a 35.5% increase, mainly driven by an increase in exports of gold, coffee, fish, sugar, beans, maize and light manufactured products to regional markets.
He also disclosed that the government targets to create over 2.5 million jobs for Ugandans in the next five years.
He said this will be achieved by effectively implementing the Parish Development Model (PDM), industrialization, wealth creation and full monetization of the economy.
“PDM will boost household incomes as well as the development of micro-enterprises. Since the launch of the PDM in February 2022, a total of Shs. 590.2 billion has been disbursed to all the 10,459 parishes nationwide, translating into Shs. 50 million per parish. The balance will be disbursed by end of this month. Next financial year, the PDM has been allocated 1.1 trillion,” he said.
“The Emyooga initiative will further boost household incomes and micro enterprises at parish and sub-county levels by directly funding parish and sub-county level enterprise groups.”
On the other hand, Hon Kasaija said next year, Mulago Super Specialized Hospital and the new state-of-the-art Intensive Care Unit at the Uganda Cancer Institute will be fully operationalized.
He said they will provide specialized care to all Ugandans and reduce medical referrals abroad.
He also revealed that the government will in the next few weeks resolve the plight of medical interns and doctors designated as senior house officers, in view of their important role in supporting the healthcare system.
“In the meantime, I have provided Shs. 22.6 billion to clear outstanding arrears for medical interns and senior house officers for the financial year ending June 2023.”
While making her remarks, the speaker of Parliament Rt. Hon. Anita Annet Among started with informing the house that H.E the President is doing well in isolation and asked Ugandans to continue praying for his quick recovery.
“I assure you of our unwavering support, love and prayers for a faster healing as you continue to lead and guide our country. As Parliament, we convey our wishes for the President’s speedy recovery. As the Bible says in Isaiah 53:5, “…. And by His stripes, we are healed…,” Rt. Hon. Among said.
She, however, expressed dismay over negative messages from sections of insensitive Ugandans who have made it a habit to spread false and alarming information intended to create panic and uncertainty in the country about the President’s health.
“I urge all Citizens of goodwill to spread love and continue praying for our country and leaders. As a God-fearing Nation, we commit our President to the Almighty God for his complete healing. Our president is very okay and is with us virtually,” Speaker Among said.
The function was also attended by the Vice President Major (Rtd) Jessica Alupo Rose Epel, His lordship the Chief Justice and his Deputy, the Deputy Speaker of Parliament Thomas Tayebwa, the National Vice chairperson of NRM Al-Hajji Moses Kigongo and NRM CEC members, the Prime Minister and Leader of Government business Rt. Hon. Robinah Nabbanja, the Leader of Opposition in Parliament Hon. Mathias Mpuuga, several cabinet Ministers, among other government officials.
