Museveni swearing-in reflects people’s will, writes Tumwebaze

Samara Ainomugisha, a daughter to Minister Frank Tumwebaze and wife Florence Tumwebaze, welcomes Museveni

Samara Ainomugisha, a daughter to Minister Frank Tumwebaze and wife Florence Tumwebaze, welcomes Museveni

Presidency minister Frank Tumwebaze says the swearing in ceremony of President Yoweri Museveni is a statement and a confirmation of the people’s will.

The Swearing in ceremony of the President Elect HE Yoweri Kaguta Museveni will take place on Thursday May 12, 2016 at Kololo Ceremonial Grounds under the theme ‘A firm foundation built for Uganda’s steady progress.

According to Tumwebaze, it is the final destination of a journey that was launched on 3rd of November 2015, when the independent electoral commission of Uganda nominated different candidates vying for the office of President.

“I take the pleasure on behalf of the entire Staff of the Presidency and on my own behalf to most Sincerely Congratulate our Principal, His Excellency Yoweri Kaguta Museveni for having successfully led and executed the campaign of our party in the recently concluded general elections for having led us to victory as the NRM fraternity.”

Here is his full statement:

It was a tough journey to walk, but he did so courageously and made us to triumph over our opponents.

Striving to Win an election is always one thing and its what every  contending  individual/group works for. But having an able candidate of a “selling brand” to lead you to that much desired and coveted victory is   always another and   a tall order for many political entities.

And of all the factors that sell  and have sold NRM  over the years, “Brand Museveni” has always been our biggest trade.

His Excellency Museveni’s personal ability to communicate a message that resonates well with the citizens’ day-to-day livelihoods, his virtues of patience and tolerance,  his magnanimity especially towards his opponents and even enemies ,his physical ability and relentless efforts that enable him to carryout countless  day and night long meetings, outreaches/rallies and not to mention his historical achievements of the liberation struggle, all combined contributed enormously to the victories we  have been getting.

There is no doubt therefore, that Uganda under the stewardship of President Museveni has  built a strong foundation for sustainable economic growth  through establishment of peace and security, development of enabling physical and technological infrastructure , development of the energy sector and good  economic management.

The  NRM government has managed over the years, to steadily maintain a positive rate of sustainable economic growth in terms of real GDP.

Since 1992/93, fiscal policy in Uganda has entailed very strict budgetary discipline. Government has kept firm control over its own expenditures to ensure that it does not have to borrow from the domestic sources to finance budget deficits.

Fiscal discipline has been absolutely essential for the control of inflation. In turn, low inflation is a prerequisite for the higher levels of private investment that have sustained rapid economic growth in Uganda.

For all this long, the main macroeconomic objectives of Government that have been steadily pursued without any policy reversals or deviations have been: to ensure rapid real GDP growth, to keep consumer price inflation to five percent or below, to maintain a prudent level of foreign reserves, and to ensure that the real exchange rate is compatible with a competitive external sector.

Maintaining low inflation is an especially crucial objective of economic policy because high inflation has a number of harmful effects on the economy.

In particular it increases uncertainty about future economic variables and thus discourages investment. Low and stable inflation is a prerequisite for private investment in long term productive assets.

It is very difficult to make long term forecasts about the commercial viability of an investment project in conditions of high inflation, because the future prices on which the viability of the project will depend are very difficult to predict when inflation is high.

Hence inflation makes long term investment much more risky. High inflation also erodes the real value of money and thus discourages savings. It often leads to shrinking of the financial system, as happened in Uganda in the 1980s.

For these and more reasons, the control of inflation has been and still is a central objective of macroeconomic policy, and an objective which the NRM government has succeeded in achieving since 1992/93 to date because of being able to maintain strong budget discipline at the aggregate fiscal level.

Another indicator of a well managed economy is the way how a government manages its borrowing in order to finance its fiscal deficit especially for a developing country like Uganda that was characterized by long periods of civil strife and general economic collapse.

If the Government runs a fiscal deficit which is too large to be financed from donor funds, it must borrow from the domestic banking system, which generally entails borrowing from the Central Bank. When the Central Bank lends money to Government it creates credit – which means that it prints money.

When Government borrows from the Central Bank there is an injection of high powered money into the economy, which money is not backed by production.  Domestic borrowing by government also squeezes out the private sector players from the domestic credit market.

Our government has been sensitive to these effects of excessive borrowing and has tried as much as possible to mitigate them. Just a few days ago the IMF confirmed that our external debt is sustainable.

In the last five years alone and despite the inevitable external challenges mainly,like destabilization of some of the regional export markets like juba, the economy   has been growing at various rates of 3.4%, 6.0%, 4.7%, 5.3% and 5.8%   in financial years 2011/2012, 2012/2013, 2013/2014, 2014/2015 and 2015/2016 respectively and is projected to grow at 6.5% for the next five years.

Inflation has been kept at 2.7% from a record high  double digit of 30% in 2011/2012. Total tax collections are projected at Shs. 13.884 trillion 2016/2017 up from Shs. 11.333 trillion in 2015/2016. Our tax to GDP ratio is expected to grow from 13.7% to 14.9%

I have dwelt slightly much more on  economic management because it’s a variable highly dependant on the nature of the country’s Political leadership and it can therefore be a good measure in assessing governance credentials of any government.

No wonder the first alarming signs that come with effects of instability or bad governance in any country are inflation levels. This should be the yardstick in my opinion to evaluate President Museveni and his long service, biases notwithstanding.

Thank you.

Frank K. Tumwebaze, MP

Minister in Charge of the Presidency and KCC

Theinsider Uganda is a news publishing website. We are located at Suite G25 Metroplex Shopping mall, Naalya Kampala Uganda. info@theinsider.ug
Enter ad code here

Copyright © 2016 Theinsider Uganda. Unearthing the truth

To Top