Kasaija presents Shs26.3tn budget to parliament


The Minister of Finance, Planning and Economic Development, Matia Kasaija, on Tuesday afternoon presented the Budget for 2016/17 to Parliament.

On May 3, 2016, the MPs passed a budget of Shs26.3 trillion a week after it was revised upwards.

The planned expenditure in the next financial year will increase from Shs24 trillion in 2015/16.

The funding of the Budget will mostly come from domestic resources, according to Kasaija.

While tabling the motion to approve the expenditure, Kasaija said taxpayers would finance nearly 70 per cent of the Budget.

Budget documents indicate that the Uganda Revenue Authority (URA) has been given a revenue collection target of Shs12.9 trillion in 2016/17.

Treasury boss Keith Muhakanizi told Daily Monitor the new tax measures are expected to raise about Shs300 billion.

In 2015/16, the economy is expected to grow at a projected low of 5 per cent as a result of several factors.

Monitor reported that Kasaija is expected to announce that the two sectors will get a combined 30.4 per cent of the entire Budget.

The education and health Budget will also get at least 12 per cent and 8.9 per cent, respectively.

According to the Budget documents, external financing for the 2016/17 is expected to rise to Shs6.7 trillion from Shs5.7 trillion in the current financial year.

Uganda started to borrow money from the domestic market to fund infrastructure projects in 2013/14 during the reign of Ms Maria Kiwanuka as the Finance Minister.

The trend has continued since but the amounts borrowed have been dropping.

In 2016/17, the government will borrow Shs1 trillion by issuing treasury bonds down from Shs1.5 trillion in the current financial year.

In February 2016, government borrowed Shs195.6b through two-year and five-year bonds at rates of 23.59 per cent and 21.20 per cent, respectively.

The government’s budget is funded by revenue collected by the Uganda Revenue Authority (URA), grants from developing partners and government borrowings from both the local and external market

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