National Budget Framework Paper Fy 2019/20 – Fy 2023/24
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THE REPUBLIC OF UGANDA NATIONAL BUDGET FRAMEWORK PAPER FY 2019/20 – FY 2023/24 MINISTRY OF FINANCE, PLANNING AND ECONOMIC DEVELOPMENT DECEMBER 2018 National Budget Framework Paper FY 2019/20 TABLE OF CONTENTS Part 1: Medium Term Macroeconomic Outlook and Indicative Revenue Framework TABLE OF CONTENTS ................................................................................................................................ 2 INTRODUCTION ........................................................................................................................................... 4 1.1 MEDIUM TERM MACROECONOMIC FORECAST ................................................................... 6 1.1.1. Macroeconomic Policy Framework ............................................................................................... 6 1.1.2. Economic Growth Strategy ............................................................................................................. 6 1.1.3. Recent Developments and Impact on the Medium Term Macroeconomic Framework ........... 7 1.1.4. Key Macroeconomic Assumptions ................................................................................................. 7 Real GDP Growth ............................................................................................................................................. 7 Inflation ............................................................................................................................................................. 8 Exchange Rate ................................................................................................................................................... 8 1.2 MEDIUM TERM FISCAL FRAMEWORK .................................................................................. 12 1.3 FISCAL RISKS STATEMENT ....................................................................................................... 13 1.4 MEDIUM TERM FISCAL FORECAST ........................................................................................ 17 Government Expenditure ................................................................................................................................. 17 External Resource Commitments..................................................................................................................... 17 1.5 COMPLIANCE WITH THE CHARTER FOR FISCAL RESPONSIBILITY ........................... 19 1.6 STATEMENT OF THE RESOURCE FOR THE ANNUAL BUDGET FOR NEXT YEAR .... 19 1.7 STATEMENT OF POLICY MEASURES ...................................................................................... 20 1.7.1 Revenue Measures ......................................................................................................................... 20 1.7.2 Debt Financing Strategy for FY2019/20 ...................................................................................... 20 1.8 BUDGET STRATEGY FY 2018/19 ................................................................................................. 22 1.8.1 Sectoral Priorities for FY 2019/20 ................................................................................................ 23 Structure of Detailed Medium Term Sector Plans and Expenditures ...................................................... 33 Part 2: Details of Proposed Sector Plans and Expenditure Agriculture..........................................................................................................................................................1 Lands and Housing............................................................................................................................................13 Energy and Mineral Development....................................................................................................................18 Works and Transport.........................................................................................................................................25 ii National Budget Framework Paper FY 2019/20 ICT and National Guidance……………..........................................................................................................34 Trade and Industry............................................................................................................................................42 Education..........................................................................................................................................................48 Health................................................................................................................................................................64 Water and Environment…………....................................................................................................................82 Social Development..........................................................................................................................................94 Security...........................................................................................................................................................100 Justice, Law and Order....................................................................................................................................107 Public Sector Management.............................................................................................................................130 Accountability.................................................................................................................................................142 Legislature.......................................................................................................................................................164 Public Administration.......................................................................................................... ..........................171 Science, Technology and Innovation..............................................................................................................204 Tourism...........................................................................................................................................................208 Annexes Annex 1. Medium Term Expenditure Framework by Vote FY2018/19 – FY2023/24.....................................214 Annex 2. Medium Term Expenditure Framework by Programme FY 19/20- FY 21/22..................................230 Annex 3. Approved Budget and Quarter One Outturns FY 2018/19 by Programme........................................249 Annex 4. Poverty Action Fund Allocations by Sub Programme FY2018/19 and FY2019/20..........................269 Annex 5. External Financing over the Medium Term FY2018/19 – FY2023/24.............................................297 Annex 6. Central Government Transfers to Local Governments FY2018/19...................................................299 Annex 7. Allocation Criteria for Transfers to Local Governments FY 2019/20...............................................320 iii National Budget Framework Paper FY 2019/20 INTRODUCTION INTRODUCTION The National Budget Framework Paper presents the Budget Strategy for FY 2019/20 which is a continuation of our aim to achieve middle-income status by 2020 and is line with the NRM Manifesto. In order to accelerate economic growth, the strategy will focus on promoting import substitution and export promotion and incentivizing private sector development. This will be achieved through industrialization anchored on agriculture and agro industrialization, manufacturing, and mineral potential to ensure inclusive growth and the creation of jobs, while promoting development of other key primary growth sectors. Therefore, the strategy aims to address constraints that the private sector faces and improve private sector competitiveness and reflects our medium term budget theme – ‘Industrialization for Job Creation and Shared Prosperity’. In fulfillment of Section 13 (2) of the Public Finance Management (PFM) Act 2015, preparation of the National Budget Framework Paper for FY 2019/20 has been informed by the outcomes of a comprehensive budget consultation process, involving all key stakeholders. Consultations were held with Central Government at the National Budget Workshop, in Sector Working Groups as well as with Local Governments in Regional workshops as well as with the private sector and Development Partners. The National BFP has two parts: 1. Part 1 sets out the Government’s Growth Strategy, Medium Term macroeconomic forecast, Medium Term Fiscal Framework and Forecast, compliance with the Charter for Fiscal Responsibility, the Resource Envelope for FY 2019/20, Policy measures, Medium Term Expenditure Framework FY 2019/20 and Fiscal Risks; 2. Part 2 provides details of proposed sector plans and expenditures. Part 1: Government’s Medium Term Macroeconomic Plan, Medium Term Fiscal Framework, Policy Measures and Indicative Revenue and Expenditure Framework. This section provides an overview of Government’s growth strategy, macroeconomic policies, recent macroeconomic performance, and future plans. This section includes plans for domestic tax and non-tax revenue; external resources from Uganda’s development partners; and the management of domestic and external debt consistent with the Government’s macroeconomic policy. Finally, it indicates the resources available to Government for the implementation of its programmes for social and economic development. iv National