MINISTRY OF FINANCE, PLANNING AND ECONOMIC DEVELOPMENT Contents 4. PS/ST’s Note 8. Editor’s Note ALIGNING PROGRAMME BASED BUDGETING 10.National Budget Strategy 12.Interview: Hon Matia Kasaija 34 TO THE THIRD NATIONAL DEVELOPMENT PLAN 34. UFZA (NDPIII) 36. National Budget Month Initiative Implementation of the Third National Development Plan (NDPIII) calls for restructuring Programme 38. Pictorial Based Budgeting (PBB) it to align to the 18 NDP III Programmes. The alignment aims to achieve 40. 2021/2022 Budget coordinated planning, and implementation of national programmes in a manner that ensures 43. Development Policy and sustainability and mutual accountability. perfomance web portal activated Aligning Performance Based Budgeting OBJECTIVE OF THE ALIGNMENT 44. LG Leaders speak out on to the National Development Plan III Budget. The overall objective is to further strengthen the 48. Pictorial BEFORE AFTER link between NDPIII Programme objectives and 18 12 resources. The specific objectives are to: 17. Farewell Note SECTOR PROGRAMME Reduce implementation challenges resulting 18. Executive Watch from uncoordinated planning and funding 20. DRMS Reduce duplication, redundancy, and wastage 23. EITI Implementation 30 VOTE VOTE Reduce ‘silo’ approach to implementation Votes mapped to sectors to mapped Votes 25. Use of Secure web across stakeholders and programs 26. Rugunda Assures Ugandans on Align programmes and enforce judicious use service delivery SUB of resources PROGRAMME PROGRAMME programme to mapped programs Sub 28. Economy at a glance DIRECTORATE 29. Qoute 30. Fourth Economic Growth Forum SUB PLANNING FRAMEWORK DEPARTMENT 33. Did you Know? PROGRAMME 18 Programme Working Groups (PWGs) DEPARTMENT -OR- PROJECT replace Sector Working Groups(SWGs) MINISTRY OF FINANCE, PLANNING AND ECONOMIC DEVELOPMENT Contents 4. PS/ST’s Note 8. Editor’s Note Programme Implementation Action Plans 10.National Budget Strategy ALIGNING PROGRAMME BASED BUDGETING 12.Interview: Hon Matia Kasaija 34 TO THE THIRD NATIONAL DEVELOPMENT PLAN 34. UFZA PROJECT (NDPIII) 36. National Budget Month Initiative OUTPUTS Implementation of the Third National Development Plan (NDPIII) calls for restructuring Programme 38. Pictorial Based Budgeting (PBB) it to align to the 18 NDP III Programmes. The alignment aims to achieve 40. 2021/2022 Budget (PIAP) will link Ministries, Departments, and coordinated planning, and implementation of national programmes in a manner that ensures 43. Development Policy and PUBLISHED BY (IF NEEDED) sustainability and mutual accountability. perfomance web portal activated Aligning Performance Based Budgeting OBJECTIVE OF THE ALIGNMENT 44. LG Leaders speak out on to the National Development Plan III Budget. The overall objective is to further strengthen the 48. Pictorial BEFORE AFTER link between NDPIII Programme objectives and 18 12 Ministry of Finance,Planning and Economic Development. resources. The specific objectives are to: 17. Farewell Note SECTOR PROGRAMME Agencies (MDA)/Local Government (LG) Reduce implementation challenges resulting 18. Executive Watch from uncoordinated planning and funding 20. DRMS Reduce duplication, redundancy, and wastage 23. EITI Implementation 30 VOTE VOTE Reduce ‘silo’ approach to implementation Votes mapped to sectors to mapped Votes 25. Use of Secure web 0414707259,0414707319,0414707115, 0414707109 across stakeholders and programs 26. Rugunda Assures Ugandans on Align programmes and enforce judicious use service delivery SUB of resources PROGRAMME PROGRAMME programme to mapped programs Sub 28. Economy at a glance DIRECTORATE 29. Qoute Strategic Plans to the NDPIII 30. Fourth Economic Growth Forum PLANNING FRAMEWORK SUB plot 2-12 &2A,Apollo Kaggwa Road. DEPARTMENT 33. Did you Know? PROGRAMME 18 Programme Working Groups (PWGs) DEPARTMENT -OR- PROJECT replace Sector Working Groups(SWGs)
Programme Implementation Action Plans THE REPUBLIC OF UGANDA OUTPUTS PROJECT (IF NEEDED) (PIAP) will link Ministries, Departments, and PUBLISHED BY Agencies (MDA)/Local Government (LG) Ministry of Finance,Planning and Economic Development. 0414707259,0414707319,0414707115, 0414707109 Strategic Plans to the NDPIII plot 2-12 &2A,Apollo Kaggwa Road. www.finance.go.ug www.finance.go.ug OUTPUT o - PIAPs are result-based with annualized DRMS: Securing Uganda’s Financial Independence o - PIAPs are result-based with annualized targets and costs for five-year period. EDITORIAL + NATIONAL Keith Muhakanizi, Editor-In-Chief o - PIAPs are the basis for developing MDA and BUDGET OUTPUT Strategy Apollo Munghinda, Editor LG Strategic Plans ITEMS ITEMS MALGs are still the budget centers under EXCLUSIVE INTERVIEW DESIGN AND LAYOUT WITHHon Matia Kasaija Julius Kamya Andrew PBB and MDAs are required to prepare Strategic ON THE STATE OF THE ECONOMY MOFPED @mofpedU + PHOTOGRAPHY #DOINGMORE Plans aligned with PIAP Ceilings Coalescing ideas on how in Uganda Established At MoFPED Press Team Ceilings to steer the Economy through Entebbe International the COVID-19 crisis Airport established at The NDPIII is the only strategic document for COVER PAGE established at MOFPED TIMES|ISSUE 1 3 targets and costs for five-year period. Sector and Vote Programme the Nation. MDA/LG plans are operational. EDITORIAL o - PIAPs are the basis for developing MDA and Keith Muhakanizi, Editor-In-Chief Apollo Munghinda, Editor LG Strategic Plans ITEMS ITEMS MALGs are still the budget centers under DESIGN AND LAYOUT Julius Kamya Andrew PBB and MDAs are required to prepare Strategic MOFPED @mofpedU Plans aligned with PIAP PHOTOGRAPHY #DOINGMORE Ceilings Ceilings MoFPED Press Team The NDPIII is the only strategic document for COVER PAGE established at established at MOFPED TIMES|ISSUE 1 3 Sector and Vote Programme the Nation. MDA/LG plans are operational. Keith Muhakanizi PS/ST’s NOTE Permanent Secretary and Secretary to the Treasury
Ministry of Finance, Planning and Economic Development.
Greetingsfrom MoFPED
welcome you to this inaugural issue of the We have paid domestic arrears owed MOFPED TIMES, a Premier edition where we by government to private firms and also draw your attention to the key issues of the provided tax relief to businesses in order I to address short-term emergency liquidity Economy and how my Ministry is responding to the threats of Covid-19 pandemic, the requirements, boost their cash flows and recent floods and the locust invasion. ensure business continuity.
Our focus right now is to revamp the For FY 2021/2022, all Accounting Officers economy to achieve growth rate of more are advised to ensure their work plans and than 6% of the GDP. Whereas the Economy budgets are aligned to the NDP III program was hit hard by the effects of Covid-19, we areas to enable improved efficiency in are pleased to note that there are now signs resource allocation and attainment of of recovery. results.
Government has provided a stimulus To all Ugandans, it is not time to despair package to boost economic recovery and but to work hard, taking advantage of continue with the transformation agenda. the available opportunities to recover the The measures undertaken include boosting economy and also improve your livelihoods health expenditures, supporting scientists by #DoingMore. and innovators engaged in COVID-19, and providing affordable lines of credit for industrial recovery, agriculture and agro- processing through Uganda Development Bank (UDB) and Uganda Development Corporation. Keith MuhakaniziPermanent Secretary and Secretary to the Treasury We are also providing credit through SACCOs and micro finance institutions to support micro, and small scale enterprises, in addition to other interventions such as Social Assistance Grant to the elderly (SAGE), cash for public works and support to the Tourism sector among other measures.
4 MOFPED TIMES|ISSUE 1 MOFPED TIMES|ISSUE 1 5 Sino-Uganda Mbale Industrial Park
PICTURE INDUSTRIAL PARK
Aerial view of 60 acre Sino-Uganda Mbale Industrial Park.One of the 22 National Industrial parks in Uganda launched by President Yoweri Museveni in March,2020. It has capacity of 60 factories and is expected to create 15,000 jobs.
6 MOFPED TIMES|ISSUE 1 MOFPED TIMES|ISSUE 1 7 EDITOR’S NOTE Apollo Munghinda Principal Communications Officer
Ministry of Finance, Planning and Economic Development. Dear Stakeholders, n this inaugural issue of the MOFPED TIMES, we bring you insights into how MoFPED walked the tight rope amidst the economic disruptions occasioned by COVID-19 and other Idisasters including floods and locusts. In our cover story, Finance Minister Matia Kasaija in an exclusive interview reflects on the journey he has travelled since COVID-19 showed up and what the future holds for Uganda’s Economy.
The Minister delves into the economic stimulus package to boost economic recovery and how it has performed in his view.
Also in this issue, don’t miss updates from the ‘scientific’ engagements that MoFPED has conducted in line with the timelines for budget preparation as stipulated in the Public Finance Management Act (PFMA) 2015.
We encourage you to use our online platforms for feedback and inquiries and to continue observing all the measures (SOPs) to combat the spread of COVID-19 which we strictly follow at MoFPED.
Here at Finance, we congratulate Dr. Sengonzi upon his appointment as Under Secretary and Accounting Officer and say adieu to Madam Betty Kasimbazi who recently retired from Public Service and also wish her happy retirement.
Enjoy your reading! Apollo Munghinda Principal Communications Officer
8 MOFPED TIMES|ISSUE 1 MOFPED TIMES|ISSUE 1 9 ECONOMY
revenue mobilization, from the current 13% GDP-tax ratio to at least 18% in the next five years.
The Prime Minister of Uganda Dr.Ruhakana Rugunda who presided over the confer- ence said the budget strategy should ad- dress among others; performance challeng- es by various Ministries, Agencies and Local Governments for better service delivery He said the next budget should also address issues of human capital development, rural development to address regional imbalanc- es, economic infrastructure and competive- ness. Post budget speech reading FY 2020/2021 Rugunda said the budget should also focus on enhancing security, justice and good E- Conference governance, private sector led growth, in Participants at UBOS addition to reducing the cost of doing busi- conference Hall ness and the rising public debt.
He said the challenges impacting the timely attainment of public investments, duplica- tion of services by the agencies, mitigat- ing effects of Covid-19 on the economy, among others should catch the attention of THE NATIONAL BUDGET STRATEGY the budgeting process. The Government also indicated plans to lim- for FY 2021/2022: Focus on Revamping it external borrowing to sustainable levels, reduce domestic borrowing from 3% to 1% of GDP and explore innovative financing the Economy solutions such as public private partnerships, infrastructure and diaspora bonds, capital markets and pension funds. he Finance Minister Matia Kasaija at a re- saija said. According to the Finance Ministry, the strat- cently concluded National Budget Con- egy will seek to increase investment in the Although the risk of debt distress for Ugan- ference for the financial year 2021/2022 He reported that the economy grew at 3.1% economy to create jobs and more prod- T da remains low, the Development Partners announced a shift in budgeting process. in the current financial year instead of 6.7% ucts for export, build human capital to en- Group said in a statement that debt levels projected before the outbreak of Covid-19. hance quality of services, improve physical are significant and rising which could jeop- He disclosed that government had ended In addition, Kasaija said poverty level is now infrastructure, enhance productivity and ardize the country’s macro-economic stabil- the budgeting and execution of activities projected at 25%, having risen from 21% in provide affordable financing to unlock en- ity in future. They called for increased invest- at the sectoral level and introduced pro- 2017 due to the impact of the Covid-19 pan- trepreneurial potential and improve com- ment in agriculture and expansion of social gramme-based planning and budgeting. demic. petiveness. protection programme. This according Kasaija is aimed at facilitat- Other disasters Kasaija said had impacted “The strategy will focus on three broad ar- The Chairperson of Uganda Local Govern- ing the implementation of the third National the country’s socio-economic progress in- eas; economic recovery, sustaining liveli- ment Association (ULGA) and LC5 chair- Development Plan (NDP III). clude the locusts’ invasion, landslides and hoods and investment in key growth en- man for Napak district, Joseph Lomonyang, floods. ablers,” Kasaija added. called for increased financial allocations to Kasaija said the planning and budgeting for local governments since they will be key im- the next financial year has been influenced He issued the budget strategy for the next The preliminary resource envelope for FY plementation centres for NDPIII. Ends by NDPIII which requires budget alignment financial year revealing that the growth will 2021/2022 is over 40 trillion and Government to development objectives as well as the translate into creation of over 500,000 jobs will rely on domestic revenue, loans (do- Julius Mukunda, the executive director at need to address the socio-economic im- annually, result in per capita income of mestic and external) and grants for budget the Civil Society Budget Advocacy Group, pact of Covid-19 pandemic that has de- $1,198 and reduce poverty level to below financing. asked Government to implement its 2018 manded the making of emergency reme- 19% by 2025. resolution to merge agencies to promote ef- dial measures to mitigate its consequences The Minister noted that public debt has ris- ficiency, end duplication of roles and save and reorganize the development agenda in However, this growth, the minister disclosed en substantially and further borrowing poses resources. the medium term. will be challenged by youth unemployment challenges – higher debt service obligations, estimated at 13% (78% of the population is which will continue to limit fiscal space and He also called for punitive action against “In the next fiscal year, we expect growth below 30 years), low quality of services, pov- crowd out private sector. non-performance and non- accountability to recover to 6%. In the medium term, eco- erty and income inequalities, and high cost In an effort to solve these challenges, the for COVID-19 funds. nomic growth will average at over 7%,” Ka- of production. Government hopes to increase domestic
10 MOFPED TIMES|ISSUE 1 MOFPED TIMES|ISSUE 1 11 COVER STORY EXCLUSIVE INTERVIEW Hon. Matia Kasaija Minister of Finance
Ministry of Finance, Planning and Finance Minister speaks out Economic Development. on mitigating the Economic impact of Covid-19 Pandemic and Economic Recovery Plans
very Ugandan to earn Sh3.7 million per They were also in the same situation. So, our year by 2040, says Finance Minister exports, apart from coffee and tea, were EMatia Kasaija affected. Then, because of low economic The emergence of COVID19 pandemic has activity, taxes were also affected. However, tilted the financial projections of several they are now beginning to pick up. So, the countries with many financial experts disease has affected the speed at which predicting a major recession. However, our economy was moving. within Uganda, the contraction in the economy has not been as bad as that What practical steps have you taken to of many countries, including developed ensure that the economy does not go into countries. recession as a result of COVID19 effects? In this interview with the Finance Minister, Matia Kasaija, he predicts that the country’s We have rolled out a stimulus economy is projected to grow by 6.1%, package, among other incentives, which gives insights into what Government did to will make people re-activate their economic cure the financial shocks that sprouted from activities. We have used both borrowed the COVID19 pandemic and also explains money and our resources to provide this why the changes under the National stimulus package. We have also boosted Development Plan III will ensure that every the Uganda Development Bank (UDB) to Ugandan earns at a least $1,000 (about deal with business people who have got Sh3.7m) per year by 2040. viable businesses to get loans at affordable interest rates. The money is not getting into In light of the COVID19 pandemic what the economy as we had wanted it. is your assessment of the performance of Tax exemptions and tax holidays have the economy this financial year and next also worked to a certain extent. Interest financial year visa-vis the projections that rates have also been held down to a certain had been earlier set? extent. Bank of Uganda has given a widow to any bank that is having cash problems For this year and next year to go to the Central Bank and have that compared to what we had predicted, the problem partly sorted out. So, generally economy has definitely affected because of the package as I announced it during the lockdowns. Lock downs mean slow or totally Budget has worked in some way, it has not stopped economic activity. People are just worked in other ways. doing nothing. So, you don’t expect much In UDB, we put in about Sh500b. That is when you are in that kind of situation. We what we have tried to do, and of course, had estimated the economy to grow, this the campaigns, are also another economic year, by about 4.7% and by 6.1% next year. But due to COVID19, we are now growing at 3.2%. For this year, we are still guessing because We had estimated the nobody can be very certain. But if we can grow at about 4-5% it would be wonderful. economy to grow, this year, The constraint is both local and international. Local because people’s economic by about 4.7% and by 6.1% activities, apart from farmers, were affected, especially trade, construction, services, next year. entertainment and the tourism sector, among others. This equally applied to the international people whom we deal with. >>>
12 MOFPED TIMES|ISSUE 1 MOFPED TIMES|ISSUE 1 13 COVER STORY EXCLUSIVE INTERVIEW
activity. We have guided the public to not focused. In order for you to achieve avoid catching the disease as they engage something that is tangible, you must plan. in various campaign-related economic When you don’t have a plan, it is like floating activities. People are tuned to work. The in air. Therefore, the plan is supposed to way our President and the Minister of Health target for us seven sectors, which we must have guided on how to deal with COVID19 work on, to move the economy at a speed is a plus to our economy and should not be at which we want it to be. And as you underestimated. know, by 2040, we want Uganda to be a middle-income country. This means that on average, every Ugandan will be earning not less than $1, 000 per year. Now, in order to get there, there are certain fundamentals that must be put in place. The first is the question of health. People must be healthy. Secondly, you must have people who are educated to help you execute the programs. Thirdly, you must have infrastructure. Under infrastructure, I am talking about roads, railways and electricity. Why roads? It is to ease the cost of doing business by enabling one to move from one part of the country to another. Why railway? To ease the cost of the movement of our exports and imports. For power, it is known that without we have agreed with the minister of trade everybody who earns an income pays the electricity, you cannot run an industry. that we must address the market issue. If we tax that is due. The focus of the strategy is Even living in a home without power, can don’t address it, the farmers are going to to ensure that for everybody doing business be a big challenge. So, infrastructure must get discouraged. here or related business abroad-whether be in place. Financial services: there is no Of course, we have got the East he or she stays here or abroad—but earns economy that can run without money. African Community market, but we have an income from investments here, should People must be able to access credit from unfortunately failed to synchronize with pay income tax. For instance, there are lending institutions because I have never our neighbours, mainly Tanzania and big people here who have property in the seen any sort of business which does not Kenya. Rwanda, you know that that is city. There are reports that about 3% of Ugandans borrow except if somebody is not expanding. another problem. So, we must look for A man might have ten properties. What have slipped back into the poverty bracket Take for instance a young man whose every opportunity for people to buy from they do is that they form a company, and as a result of COVID19; how true are these business is selling pancakes. He will reach a us, and DRC is one of our biggest markets, put them under one umbrella. If one property reports? stage where he will need to expand. He or particularly the eastern part of Congo. Since makes a profit, that profit is swallowed by she must have a window to access credit in we are the easiest source of supply to them, the loss of the other one, and the money It is true that poverty levels have order for him or her to expand. So, we need we have to sort the problem of roads. For they have made out of that property is used gone up. Why? To answer this is very simple: the financial services. instance, to access a place like Beni when it to purchase another property. So, at the People are not working. However, within So, the National Development Plan is raining, it is a problem. You can get stuck end of the day, he says, he has not made the rural areas, there is no big problem. The III has given us a new foundation. For with commodities once it rains, and there is any money. We are now saying that each problem is in urban areas where people example, if we wanted to build a road, a bit of insecurity. property must be accounted for separately. depend on daily earnings, for example there are many players involved such as The Government there has not been We have also got digital stamps, and I can Boda Boda riders, market vendors and surveyors, the contractor, designer and the able to be in charge of that place and tell you we have seen wonders, especially traders, among others. They support the environmentalists, among others, and we remove negative forces. It is also in the within the bottling manufacturing industry. ordinary person. So, their activities were not are focusing them on a project instead of interest of Uganda to make sure that DRC taking place due to lockdown, definitely, them acting independently. They must work is navigable. People are saying we are Regarding the issue of national debt, some poverty levels will go up. There are many in unison on the programme. If we say, we helping Congolese, but we are also helping economists argue that the debt levels are people who can’t feed themselves. There a going to tarmac road X, all these players ourselves. We are no creating a new territory; no longer sustainable; what is the position of are many people, if schools open, who may must be brought together to focus on that we don’t have excess money or appear to your Ministry on this matter? not have capacity to pay fees. For, sure, I programme and they must synchronize. be colonialists. It is the question of making am still waiting for the Uganda Bureau of sure that our excess goods can reach that Some people say that the debt levels are Statistics (UBOS) to provide actual figures on Some Ugandans are questioning what market. no longer sustainable. We are very cautious the poverty levels as a result of COVID19. informed Government’s decision to borrow on this issue of debt sustainability. Where The figures carried by the media are mere for purposes of constructing a road in DRC Your Ministry recently launched the we have reached now, we want to ensure guesses, and for me, I don’t deal with when Ugandan roads equally need to be Domestic Revenue Mobilisation Strategy that we borrow only for those projects that guesswork. paved? (DRMS); should we say this has improved will add value to the economy very fast. DRC is one of our big potential revenue mobilization by Uganda Revenue Implementation has also been slow. You How important is the implementation of markets. Uganda is now a surplus economy Authority (URA)? borrow money for the project but three NDPIII to the economy? What changes in a number of products such as milk, maize, years down the road, there is no work done. should we expect? tea, sugar and coffee, among others. We It is work in progress. However, if we follow So, we are also going to hold a whip on any It is very important. Even at our are producing more milk than we can it in a way we have designed it, we can sector that does not absorb the money. individual level, if we don’t plan, we consume. This means that we must look for achieve much more despite the COVID19 However, as we speak now, the debt is can’t advance much because you will the market. So, this coming financial year, challenges. Our job is to ensure that still sustainable. The other thing is about >>>
14 MOFPED TIMES|ISSUE 1 MOFPED TIMES|ISSUE 1 15 COVER STORY EXCLUSIVE INTERVIEW FAREWELL
borrowing domestically here. Domestic for other purposes other than those that the money is very expensive. I don’t want to money was approved for. go into the reasons why it is very expensive. We have now reached a level of spending What should ordinary Ugandans do to get about 20% of our domestic revenues to out of poverty and improve their household service the domestic debt, and that is not a incomes? very good indicator. So, we are very serious on that one. We have two categories of people. We We are going to cut down on borrowing have people who can’t employ themselves, locally and concentrate on borrowing and they are many. The job market as we concessional loans where the interest is low speak now is flooded by applicants. The and the indemnity period is very long. youth that are graduating from various institutions of learning are increasing, and Some Ugandans think the problem of our employing them has become a problem. economy is wasteful expenditure and lack That is why we are insisting that anybody Ms. Betty Kasimbazi of clear priorities; what do you have to say who comes to do business here, they must Retired Under about this? answer the question of how many jobs they Secretary and are creating or how many are you killing? That is not very true. So, giving allowances And not only creating these jobs, they FAREWELL NOTE UPON Accounting Officer to our people is not wasteful expenditure. must also be quality jobs. Then, in category Holding a conference is not wasteful number two, are those who have got Ministry of Finance, expenditure because by doing so, you are capacity to employ themselves. The easiest RETIREMENT FROM CIVIL Planning and supporting your sectors such as hotels to get way is farming. It will sustain your family Economic SERVICE, SEPTEMBER 2020 Development.
And as you know, by 2040, we want n fulfilment of the Public Service mandatory I have also had the opportunity to supervise, requirement as stipulated in Section L-a of the guide and mentor some of you during my duty Uganda Public Service Standing Orders 2010, of service. I hope, I made a difference in your Uganda to be a middle-income II will be retiring from active Service on the due career and lives. This I could have done with date of 29th September 2020. mistakes and errors in judgement, I seek your forgiveness, it was done in good faith. country. This means that on average, It has been a long and interesting journey of 36 years that must now come to an end. This To all staff, you are a great team to work with. journey begun in 1984 from Ministry of Youth, I can confidently and proudly say that the every Ugandan will be earning not Culture and Sports, to Ministry of Energy, Finance Family is one with highly Educated, Ministry of Trade, Industry and Cooperatives, Skilled, Knowledgeable, Hardworking and Ministry of Local Government, Masaka Local Motivated staff. I encourage you to use these less than $1, 000 per year. Government, Ministry of Works, Housing, skills to propel this Economy to middle income Transport and Communications and to the level. Thank you for the confidence and trust Ministry of Finance Planning and Economic you put in me. and Development, where I have served for the liquidity. Elections are going to cost us a lot because it is related to food. That is the real longest period of time of 15 years. of money, but we must do it because if we economy because nobody will want to It is time to say goodbye to all of you, don’t do it, governance becomes an issue sleep without food. So, there is a market 24 I extend my sincere gratitude to the Top and once the country is not stable all these but as I exit the Finance Family, I trust hours every day. The other thing you have Management Team for the support and things we have done will be destroyed. to do is value addition. guidance that I have been rendered during we will be bound to each other in many So, elections help you to address your We are planning to organise farmers my tenure of Service, as the Under Secretary/ governance question. We had problems in other ways. in zones or nucleus. If we can organise Accounting Officer of the Ministry. You made the past because governance was distorted the country along those zonal farming my job manageable that enabled me perform It is time to say goodbye to all of you, but as I and we had to go to war. So, people might arrangements, then the volumes will to the best of my ability. I take responsibility for exit the Finance Family, I trust we will be bound say that we spending billions of shillings in increase and farming will be boosted. the short comings that may have occurred to each other in many other ways. I wish you elections, but governance is not something Uganda has the best fertile soils in the world, all the best and encourage you to continue we have to joke with. The only thing I can water is available and the environment is I thank all Heads of Department for your working hard. The Economy of Uganda greatly agree with is the stealing of public funds. favourable. Everything can grow in Uganda. professionalism and good working relationship depends on the decisions made in this Ministry, Some people divert money from the purpose The challenge will be the market but we that has seen us achieve some milestones. The therefore make good and informed decisions for which it was allocated and released. For, are working closely with other countries experience has enriched my understanding that will push Uganda forward. Stand for that is what I would call first class wasteful to secure a market for our farmers. Our and appreciation of the Economy and life #DoingMore. expenditure. challenge is to get it there when we have in general. I have learnt to think and act as Of course some Ugandans, who divert no inter-connectedness as Africa. a multiple skilled officer, as an Economist, FOR GOD AND MY COUNTRY resources, will use it to do certain things Administrator, Accountant, Auditor and here, but others siphon it out of the country. Procurement Officer. This provided ground for So, I don’t agree that there is wasteful me to perform my role as the Under Secretary/ expenditure. What I disagree with is the Accounting Officer with minimal difficulties. The question of stealing or diverting this money knowledge acquired overtime is invaluable. BettyRetired Under SecretaryKasimbazi and Accounting Officer
16 MOFPED TIMES|ISSUE 1 MOFPED TIMES|ISSUE 1 17 EXECUTIVE WATCH Dr. Sengonzi Edward Damulira appointed Under Secretary and Accounting Officer
r. Sengonzi Edward Damulira has been appointed Under Secretary and Accounting Officer, Ministry of Finance, Planning and Economic Development (MOFPED) effective D1st October 2020, succeeding Ms. Betty Kasimbazi who retired recently from the Civil Service upon clocking the mandatory retirement age of 60.
Prior to his promotion, Dr Sengonzi worked as Principal Assistant Secretary at the Ministry of Finance, Planning and Economic Development since December 2017.
He has also previously worked as Principal Assistant Secretary at the Ministry of Health and Office of the President as well as Private Secretary to H.E the President.
Dr. Sengonzi holds a Doctoral Degree in Economics, a Master’s Degree in Economic Policy and Planning and a Bachelor’s Degree in Quantitative Economics all from Makerere University.
MoFPED staff congratulate Dr.Sengonzi upon this appointment and wish him success.
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Dr. Sengonzi Edward Damulira Under Secretary and Accounting Officer.
Ministry of Finance, Planning and Economic Development.
18 MOFPED TIMES|ISSUE 1 MOFPED TIMES|ISSUE 1 19 REVENUE DRMS TO GENERATE DEPENDABLE AND MORE CERTAIN REVENUE FLOW
n the elaborate Domestic Revenue which form the basis for intensified efforts for Mobilisation Strategy (DRMS) for FY 2019/20 even stronger revenue outcomes. Ito FY 2023/24 which the Finance Ministry launched, government targets to broaden Such reforms include introduction of the the country’s domestic revenue base. Value Added Tax (VAT), increasing income tax rates and tax administration reforms, The aim is to achieve domestic revenue among others. contribution of between 16% and 18% of the total Gross Domestic Product (GDP) in the The Finance Ministry developed DRMS in the next five years from the current 13%. collaboration with the Uganda Revenue Authority (URA), Development Partners and Minister of State for Finance This commitment builds on the government’s other stakeholders including the civil society (General Duties) Hon. Ajedra existing policy of seeking to increase tax and the business community. launching DRMS in Kampala revenue as a share of the GDP by at least 0.5% as envisaged in the NDP III. The DRMS recognizes the importance of having a medium-term strategy for the DRMS to tackle the political economy the tax system. The gap between actual The current revenue yield remains below government revenues to guarantee a constraints, improving the tax system through and potential VAT revenues is estimated expectation for a country at Uganda’s reasonable, realistic and practical approach policy initiatives and empowering Uganda to be around 3-4% of GDP mostly due to stage of development. to sustainable resource mobilization. Revenue Authority (URA) to strengthen the inefficiencies in compliance management administration and collection of domestic and widespread tax evasion. This according to the Finance Ministry Key results in this strategy include; raising revenues. jeopardises economic growth and of additional revenues to support the The Ugandan economy is dominated development by limiting the government’s government’s budgetary position, to Some of the DRMS reforms that are already by unregistered traders and undeclared ability to provide the much needed social encourage a healthy flow of investment being implemented to improve revenue employment. The small number of individuals services such as education, health and and to address issues of fairness and generation in FY 2020/21 include introduction registered and paying income tax is in welfare programmes. transparency in the tax system. of e-invoicing and electronic fiscal devices, indication that tax collection is far below the digital stamps, rental income tax collection expected. According to the World Bank, Uganda still DRMS is also intended to deliver National solution by RippleNami and deployment lags behind regional member countries Development Plan III and Vision 2040 by of scanners and electronic cargo tracking Many Ugandans conduct business in in terms of tax revenues at about 13% establishing a medium-term framework for system . the informal sector which is outside the compared to countries such as Kenya at generating the revenues that these requires purview of the tax system, this in addition 18% and Rwanda at 16%. on top of encouraging greater self-reliance Challenges to revenue growth to tax leakages, frequent changes to tax in financing economic development. laws which creates unpredictable tax Uganda’s public expenditure is growing at Uganda’s revenue landscape is environment, coupled with challenges in a fast rate due to the need to finance her The strategy is also motivated by the need characterised by a number of challenges tax administration and enforcement greatly National Development Plan (NDP), with to generate constructive and inclusive including unrealised revenue potential in affect revenue growth. >>> a quest to attain middle income country debate within Uganda about the shape status. and balance of the tax system, build consensus around an approach to taxation Owing to the rising public expenditure that represents a better fit with Ugandan Revenue Contribution of between coupled with relatively low levels of domestic aspirations, society and ways of doing revenue collection, Uganda’s stock of business. public debt both domestic and external and has been increasing. The debt to GDP ratio DRMS also seeks to provide greater certainty increased from 35.4% in FY 2018/19 to 40.2% and confidence for domestic and foreign 16% 18% years in FY2019/20. investors in the planned direction of taxation policy. from the Over the past years, Uganda has of the total Gross Domestic implemented a wide range of tax reforms A number of proposals are underlined by Product (GDP) in the next5current 13% 20 MOFPED TIMES|ISSUE 1 MOFPED TIMES|ISSUE 1 21 REVENUE EXTRACTIVE INDUSTRY
In the same vein, the poor awareness of from exemptions and publish a full tax the link between taxes paid and services expenditure framework to better understand obtained creates a strong perception of the fiscal cost of supporting investment and unfairness in the tax system, with respect to social welfare. who benefits from the tax payers money. PS/ST’s perspective Finance Minister speaks Through the DRMS, Keith Muhakanizi, the Permanent Secretary and Secretary to EITI the Treasury, says the country has taken an important step towards creating a Uganda that is stronger, more independent IMPLEMENTATION and better equipped to set its own course through history and into the future. “We have recognized the value that can STAKEHOLDERS MEET TO DISCUSS ROADMAP come from having a transparent medium- term strategy for the development of our tax system - stability, sustainability, investor AMPALA, UGANDA: The Multi- environment for investment opportunities for confidence…,” he said. Stakeholder Group (MSG) of the Uganda both the local and international investors in He adds that through the DRMS; “We will KExtractive Industries Transparency the extractive sector of Uganda. take greater control of our own budget, Initiative (EITI) held its 8th meeting on 25th our own finances and our own choices in September,2020 in Kampala, Uganda to “We need to ensure that our people resource allocation.” discuss the July 2020 to June 2021 work-plan understand, appreciate and participate “We make a commitment on behalf of all which will guide the EITI implementation and in the development compact that we Ugandans not to burden our children and lead to the publication of Uganda’s first EITI have with our private sector partners in the our children’s children unnecessarily with report. extractives sector. It is important that our the debts that they will have to repay,” said natural resources benefit all Ugandans,” Muhakanizi. This was the first MSG meeting held after said the Minister. Uganda’s accession to EITI, which took Civil Society Budget Advocacy Group place on 12th August 2020.The decision to Uganda’s National EITI work-plan has (CSBAG) Executive Director, Julius Mukunda accept Uganda was announced by the three main objectives namely: Enhance says enhancing implementation of tax EITI Board Chair, Rt.Hon. Helen Clark from transparency in the extractives sector, Finance Minister Matia Kasaija says there is administrative efficiency measures and the Secretariat in Oslo, Norway. As an EITI strengthen revenue management and need to have a stronger and more certain improved political will to support tax member, Uganda will be required to disclose accountability and to build the operational revenue flow to enable government meet its measures will effectively eliminate revenue information on contracts and processes of and technical capacity of the MSG and expenditure needs and encourage foreign shortfalls and tighten revenue leakage and awarding them, exploration and production Secretariat to ensure EITI is effectively investment. achieve much needed revenue efficiencies. activities and revenue collected from the implemented. The Multi-stakeholder group is extractives sector. comprised of representatives of the private “This calls for commitment to a prudent and >>> sound mid-term strategy for financing our What is EITI? plans to give confidence and certainty to our people and our investors.” Extractive Industries Transparency Initiative (EITI) is a global standard aimed at promoting Kasaija adds that DRMS brings transparency transparent management, accountability to the direction of the tax policy in the country and good governance of petroleum and We need to ensure that for the next five years and will strengthen the mineral resources.EITI member countries administrative effort to support it. are required to disclose information relating our people understand, to contracts and licenses, production and “In order to achieve our revenue potential, revenue from extractives as well as revenue we will move away from adhoc, annual allocation and benefits accruing to the “appreciate and participate tax policy changes. These piecemeal citizens from the resources.
adjustments, with little alignment to an in the development over-arching strategy have created a high Uganda is the 54th country globally and the degree of unpredictability and uncertainty 26th in Africa to become an EITI member. compact that we have with
in our tax policy direction.” Other members in Africa include: Ethiopia, Ghana, Tanzania and Zambia. According to Kasaija, DRMS recognises the our private sector partners need to involve taxpayers in the tax policy The Kampala Meeting “ formulation process and restore ownership in the extractives sector. and public confidence in the tax system. The meeting was officiated by the Minister He says that government will continue to of Finance, Planning and Economic It is important that our provide a business friendly tax environment Development, Hon Matia Kasaija who in his and support investment. address emphasized that the decision to join EITI will create a transparent and competitive natural resources benefit However Kasaija reveals that, the target is to reduce unproductive revenue leakages all Ugandans
22 MOFPED TIMES|ISSUE 1 MOFPED TIMES|ISSUE 1 23 EXTRACTIVE INDUSTRY
sector, civil society and government. The Group also discussed additional Investment decision (FID) for the oil project disclosure requirements under the EITI is in the offing. The decision will unlock The MSG Chair Mr. Moses Kaggwa who is Standard, highlighting that successful significant financing and opportunities for also the Acting Director, Economic Affairs at implementation of EITI will be through close both local and international investment and the Ministry of Finance called for collective inter-agency collaboration and collective participation. effort and commitment of the members stakeholder contribution. Why it has taken some time for Uganda to in the journey of EITI implementation in join EITI Uganda. The Multi-Stakeholder Group (MSG) Before embarking on the EITI journey, comprises 26 members representing the government needed to have in place strong Kaggwa also gave an update on the three constituencies of government, oil legal, policy and institutional framework developments in the extractives industry on and mining companies and civil society. before signing up in order to ensure effective the EACOP Pipeline, Oil Refinery Project and Its role is to oversee EITI implementation in implementation. the Mining sector reforms being undertaken Uganda so as to improve the governance by Government which will complement the of the extractive sector through enhanced The legal and regulatory framework is now in implementation of EITI in Uganda. transparency and accountability. place and the EITI principles of transparency and accountability are already enshrined Mr. Kaggwa emphasized that the first EITI Benefits of Uganda joining EITI in this framework governing oil, gas and national report due in February 2022 needs to minerals in Uganda, including the 2008 be well prepared detailing the key aspects Implementing EITI will help Uganda put in National Oil and Gas Policy, the 2012 Oil of Uganda’s extractive sector following place a framework to identify and address and Gas Revenue Management Policy, the framework and guidelines provided in the challenges in the oil, gas and mining the 2015 Public Finance Management and the EITI Standard in order for Uganda to be sectors. Uganda’s membership has come Accountability Act, and the 2018 Mining validated. at an opportune time when the Final and Mineral Policy for Uganda.
By Byereeta Leone Samson (PGDCS, CEH, CHFI) Ag. Senior Systems Analyst, Accountant General’s Office – Ministry of Finance, Planning and Economic Development. Important TIP on how to identify and use secure Web sites ave you ever noticed that most website addresses start with the string …. http:// and/or …… https://? Note that one has an H“s”. The one with an “s” is all about keeping you secure. HTTP stands for Hyper Text Transfer Protocol. The S (big surprise) stands for “Secure”. If you visit a website or web page, and look at the address in the web browser, it is likely begin with the following: http://.
This means that the website is talking to your browser using the regular unsecured language. In other words, it is possible for someone to “eavesdrop” on your computer’s conversation with the Website. If you fill out a form on the website, someone might see the information you send to that site. For your information, communication across the Integrated Financial Management System (IFMS) is secured as the Https:// functionality is activated. Meeting of the Multi-stakeholder group of Extractive Industries This is why you NEVER ever enter your credit/debit card number in transparency intitiative an Http website! But if the web address begins with Https://, that means your computer is talking to the website in a secure code that (EITI) 25th September 2020 no one can eavesdrop on. Kampala,Uganda You understand why this is so important, right?
24 MOFPED TIMES|ISSUE 1 MOFPED TIMES|ISSUE 1 25 SERVICE DELIVERY
from cutting edge research as well as policy experiences in other countries. RUGUNDA ASSURES He added that it also identified a course of actionable policies to promote and sustain inclusive growth in Uganda.
According to Muhakanizi, before the Covid-19 shock, Uganda had registered UGANDANS significant economic growth rebound since 2016. He said in the financial year 2019/2020 ON EFFECTIVE SERVICE DELIVERY growth was 6.8%. He said this was as a result of government adopting a number of policy interventions suggested in the first three Economic rime Minister of Uganda, Dr.Ruhakana In addition the Premier said business Growth Forums to address some of the key Rugunda assured Ugandans during development services are to be expanded development challenges that threatened the 4th Economic Growth Forum of including establishment of industrial business P Uganda’s long- term growth trajectory. the government’s commitment to effective shelters to help integrate SMEs in both the service delivery. informal and formal economy into the The interventions included raising agricultural country’s industrialization process to meet productivity, spurring a process of structural “As the leader of government business, I domestic demand and take advantage of transformation, raising public savings and pledge greater commitment to the delivery the regional market. investment and addressing labour force skills of government programs and services in a deficit among others. timely and efficient manner. “We will continue to focus our energies on I also take this opportunity to call upon my policies and actions to re-invigorate our The Development Partners in their statement colleagues in government to renew our economy. Everything we are doing and said that Uganda has proven itself to be commitment to the service of the people of after this crisis is all focused on building a more resilient amidst the Covid crisis than Uganda.” more inclusive and sustainable economy most of the other countries. that will be more resilient in the face of the The Ministry of Finance, Planning and domestic and global challenges we face,” “Nevertheless, the external shock to tourism Economic Development and the he said. and Foreign Direct Investment (FDI) inflows International Growth Centre ( IGC) hosted has been severe and this has been amplified the Forum under the theme; “Unlocking new He added that the forum exhibited the by a reduction in domestic economic opportunities for inclusive growth during and government’s openness and accountability activity due to lockdown restrictions.” after COVID-19.” to the people of Uganda in the conduct of They added that increase in poverty reflects government business the limited coping mechanisms available The main objective of the conference was to the poor and vulnerable during the to identify actionable policy interventions to “The NRM government discusses the budget pandemic. mitigate the negative impacts of COVID-19 openly with the people and resources are as well as recommend medium-term allocated to areas which support growth. It “With little savings, no means to borrow and strategies to support economic resilience is only appropriate that the growth which is no alternative sources of income, many and recovery. inclusive and pro-employment is discussed have had to reduce food consumption in such a forum,” said the Premier. to get by. The instances of weather and In a statement delivered on his behalf by health shocks increasing in frequency, we the Permanent Secretary and Secretary to The Forum deliberated on the need to should use this as an opportune moment to the Treasury, Keith Muhakanizi to Rugunda promote climate resilient and competitive reflect on how current social safety nets can said Covid-19 has tested the resilience supply chains in agriculture, increasing labour respond,” said the statement. of Uganda’s economy and provided the productivity, improving public infrastructure opportunity to re-orient it towards increased investment management, strengthening domestic production and value addition. domestic resource mobilization and He said government had seized the leveraging trade and regional integration opportunity through working closely with the for economic growth. private sector to harness the opportunities. “To the business community that may not Rugunda said through the budget, be directly involved in the implementation government has provided additional of government programs, you have a great liquidity to Uganda Development Bank role to play in the management of the (UDB) for investment financing to support economy,” Rugunda said. local manufacturing and increased funding for industrial research to strengthen In his remarks, the Finance Ministry Permanent the domestic technological base of Secretary and Secretary to the Treasury, Keith the economy to support the growing Muhakanizi said the conference provided Dr.Ruhakana Rugunda manufacturing sector. an opportunity to discuss immediate and Prime Minister of Uganda medium-term growth challenges, learn
26 MOFPED TIMES|ISSUE 1 MOFPED TIMES|ISSUE 1 27 Economy at a
Glance Hon. David Bahati Inflation remained stable for most Quote “Rt.Hon. Speaker, this brief is to seek the ap- of FY 2019/20, with headline inflation aver- proval of Parliament to borrow up to UGX aging at 3.0% compared to 3.1% recorded 4,307.3 billion through domestic borrowing for FY 2018/19. Headline inflation has how- PROVISIONAL and up to USD 600 million from the Interna- ever picked up (Starting June 2020 to date) tional Monetary Fund (IMF) to finance the Total Public currently at 4.6% with main driver being Core budget deficit for the FY 2020/21,” Hon.Da- inflation which is at 5.9%. This increase is at- vid Bahati,Minister of State for Finance/Plan- ... borrow up to UGX tributed to increased costs of production, Debt ning.
especially transportation costs and higher prices of imported inputs. 4,307.3 billion through “I wish to call upon the incoming Board to $ internalize the mandate and functions of The past FY 2019/20 registered a
USD 15.3 the Bureau and come up with policies, reg- domestic borrowing shortfall in revenue collections of UGX 1,270.6 “ ulations and guidelines that will enable the billion and in the current FY 2020/2021, UGX BILLION Bureau keep on top of the game,” Hon. Ba- 2,507 billion due to the impact of COVID- 19. hati in his speech during the inauguration of and up to USD 600 the New Board of Directors of Uganda Bu- Uganda’s exports declined by 3.5% “ reau of Statistics (UBOS) chaired by Dr.Albert to USD 3,822.99 million in FY 2019/20 from million from the Byamugisha. USD 3,962.47 million in FY 2018/19. This de- cline was recorded in the second half of the International Monetary financial year when the COVID-19 pandem- ic hit. Fund (IMF)... 68% Imports into the country declined by IS EXTERNAL 9.7% from USD 6,828.32 million in FY 2018/19 Hon. David Bahti to USD 6,165.13 million in FY 2019/20 with most of the decline occurring in the second USD 10.4 half of the financial year. Foreign Direct Investments (FDI) into
BILLION Uganda declined by 7.6% for the first three quarters of FY 2019/20 to USD 805.96 million in comparison with the same period the pre- vious year.
DEBT TO PS/ST, Keith Muhakanizi As of June, 2020, provisional total “The Economy has to adopt to a new nor- public debt amounted to USD 15.3 billion, mal, whether we like it or not. Despite chal- of which external debt was USD 10.4 billion lenges, COVID-19 has provided us with a “ (68%) and domestic debt amounted to USD unique opportunity to accelerate our import STOOD 4.9 billion. Provisional Nominal debt as a per- The Economy has substitution and export promotion drive,” PS/ GDP centage of GDP stood at 40.2% below the ST, Keith Muhakanizi. @ EAC debt to GDP threshold of 50%. to adopt to a new “Things are becoming bright now, Ugan- Government needs to borrow up 40.2% dans need to work hard instead of lament- to UGX 4,307.3 billion through domestic bor- “ ing. They should be in production. Shocks normal... BELOW THE EAC rowing and up to USD 600 million from the all over the world, overtime take place, but International Monetary Fund to finance the Keith Muhakanizi when they take place, people work hard to budget deficit and additional expenditure come back where they used to be. Govern- DEBT TO GDP pressures for the FY 2020/21. ment and Ugandans should work hard to THRESHOLD OF 50% get back the Economy where it used to be, above 6% economic growth,” PS/ST, Keith Muhakanizi 28 MOFPED TIMES|ISSUE 1 MOFPED TIMES|ISSUE 1 29 ECONOMIC GROWTH Participants attending one of the sessions. he Ministry of Finance, Planning and - There is high uncertainty about future Economic Development hosted the spread of COVID-19 and containment Tfourth Economic Growth Forum on measures. September 1st, 2020 at Kampala Serena - The most affected countries by COVID-19 Hotel. This was the fourth conference in are at the center of global value chains. a row that the Ministry has organized, in These include China, USA, many countries in partnership with the International Growth the European Union, India, etc. Center (IGC). - As for Uganda, it was noted that because of the weak healthcare systems, outbreak However, this year, was different from of the virus en-masse would overwhelm the By Francis Ahimbisibwe the previous ones owing to the ongoing existing capacity. COVID-19 pandemic. Participation was - Severe contraction in the global economy mostly online through the Ministry’s social and tighter financial conditions have spilled media platforms and the website as well as over to Sub Saharan Countries including through the zoom platform which allowed Uganda. participants to attend offsite. - Due to global economic downturn, there has been reduction in remittances from Participants included government Ugandans living abroad, falling international officials such as Permanent Secretaries, demand (hence decline in export revenues), representatives of the donor community and decline in tourism receipts, and Foreign (Development Partners), the academia and Direct Investment (FDI). some private sector players. - Due to both domestic and global lockdowns, there were job losses thereby The purpose of this particular conference affecting livelihoods (especially in the was to reflect on the state of the Ugandan Services sector categorized as non-essential economy, particularly in light of the recent such as bars and restaurants). global economic and health crises caused - Limitations on international transport (travel) by COVID-19, and identify policy solutions disrupted supply chains, exports, imports, to drive the country’s future economic including imported inputs for factories thus growth performance. Participants discussed affecting production. immediate and medium-term growth - The pandemic has also affected challenges, lessons from cutting edge Government’s fiscal position as domestic research as well as policy experiences in revenues fell far below target while spending other countries, with the aim of identifying needs increased beyond FY2019/20. This a course of actionable policies to promote resulted into widening of the fiscal deficit and sustain inclusive growth in Uganda. from 4.9% in FY2018/19 to 7.2% in FY2019/20. To aid deliberations, the conference was In view of the above observations, the subdivided into three sessions. following recommendations were made; - First, continued provision of adequate The first session aimed at assessing the resources for essential health expenditure to global and domestic impact of COVID-19 contain the spread of the virus. and future prospects. Participants explored - Put in place fiscal and monetary policies to the outlook for the global economy, key support both the supply and demand sides structural changes and opportunities for >>> developing countries, and how policymakers Fourth Economic can mitigate developing economies contraction, and position economies for recovery in 2021 and beyond.
The first session was chaired by the Permanent Secretary/Secretary to Treasury, Mr. Keith Muhakanizi while the main discussant for Growth Forum the session was Dr. Joseph Muvawala, the Executive Director of the National Planning Authority. Presenters for the session Coalescing ideas on how to steer the were Dr. Albert Musisi, Commissioner of the Macroeconomic Policy Department at the Ministry of Finance, Planning and Economy through the COVID-19 crisis Economic Development, and Mr. Mathieu Teachout, the Research Director at the IGC London Hub. From this session, the following observations were made;
- Most countries have implemented very strong containment measures to curb the spread of the virus.
30 MOFPED TIMES|ISSUE 1 PS/ST Keith MOFPEDMuhakanizi TIMES|ISSUE 1 31 ECONOMIC GROWTH Did you know? of the economy given the nature of impact a senior economist at Ministry of Finance, eliminate tariffs on crucial imported inputs, of the Covid-19 pandemic in order to realize Ms. Nicole Ntungire, Country Economist at and put more attention on trade facilitation economic resilience and growth recovery. the IGC Uganda, and Dr. Paul Corti Lakuma especially with in the East African Region On the supply side, measures should aim from the Economic Policy Research Center. (EAC). The 9 key pillars and at limiting economic losses, and alleviating The general discussions in this session were liquidity constraints of firms to ensure survival led by Mr. Wilbrod Humphreys Owor, Also discussed in this session was how to for most affected sectors. On the demand Executive Director, Uganda Bankers revive Uganda’s tourism industry through the 14 production lines side, measures should aim at boosting Association. A number of recommendations national budget. Major recommendations aggregate demand (through provisions for were made in this session. However, the from this discussion included focusing on the vulnerable, protection of jobs/wages most significant recommendation was on protection of natural resources during of the real economy? and payment of domestic arrears, etc). prioritisation of Social protection to mitigate this pandemic such that when business - To return to potential growth, there is need immediate income/remittance losses of resumes, there is still tourist attractions. It for provision to support sectors with high both urban and rural households. This was was also agreed that effort should be put The 9 pillars are: food, shelter, clothing, medicines, defense, fiscal multipliers and those most affected by recommended to be done through food in encouraging local tourism, continue physical infrastructure, health, education and spirituality. The the pandemic, particularly Agro-industry/ distribution, expansion of the SAGE grant marketing Uganda positively as a tourism 14 production lines are:maize,cassava,banana,beans,Irish agro-processing (hence agriculture) and to those aged above 65 years as well as destination, etc. potato, sweet potato,millet,sugarcane,cattle tourism, manufacturing, and education. introducing urban cash for work program. (beef),dairy,coffee,tea,cocoa and fish. - It was emphasized that in the medium term Finally, in this session agriculture was also (after the crisis), there is need to reverse the The third and final session of the conference discussed especially on how to improve The measures to increase investment in the 14 production expansion in the fiscal deficit and public was on the subject of medium-term productivity during the pandemic and lines will be undertaken within area specific agriculture-led debt to ensure fiscal and debt sustainability strategies for the most affected sectors to beyond. Key take home message was on (AGRILED) programmes provided for in NDP III. which is critical for investor confidence and recover from the effects of the COVID-19 ensuring standards through certification/ hence for growth in the long run. pandemic. Dr. Louis Kasekende, former regulation, and improving advisory services Slow performance of projects is in most cases attributed to low Deputy Governor Bank of Uganda, chaired through building capacity of agricultural absorption arising from challenges faced by implementing The second session was on the impact of the this session. Discussions included how to extension staff in modern methods of agencies as a result of slow procurement, acquisition of right pandemic on enterprises and households, harness opportunities and minimize threats providing advice to farmers, including use of way, insufficient counterpart funding, poor management as and how Government has intervened to from the COVID-19 shock as far as Trade of ICT. well as social and environmental safeguard issues. help. It was chaired by Dr Joseph Muvawala, and import substitution are concerned. the Executive Director, NPA. Presenters in Here it was agreed that Government should The writer is an Economist in the Macro According to the Collaborative Africa Budget Reform Initiative this session included Ms. Justine Ayebare, invest more in local content programmes, Economic Policy Department (CABRI) recent rankings, and other related surveys, Uganda has been ranked 2nd to South Africa in a row over the previous two financial years (2017/2018 and 2018/2019 in Budget transparency Initiatives.
EMYOOGA Programme was conceived to scale up direct 4th Economic Growth Forum support to communities through establishment of various Panelists. specialized funds/Myooga– specific Apex SACCOs at Constituency level but with operations /branches at parish level. This approach is consistent with the parish model adopted in the National Development Plan III.
Hon.Kasolo launching Emyooga in West Nile 32 MOFPED TIMES|ISSUE 1 MOFPED TIMES|ISSUE 1 33 SERVICE DELIVERY The Uganda Free Zones Authority (UFZA) team (L-R Ms Grace Achire Labong – the support in the project development this far. Vice Chairperson, Board of Directors, Mr. Hez Kimoomi The Chairman urged NEC - the contractor Alinda – Executive Director and Oubuntu Consults Limited – the and Eng. Dr. Feredrick supervisor to fast track the completion of the works to pave way for the second phase of Kiwanuka - Chairman, Board the Zone implementation. of Directors) hand over the architectural designs for The Authority is mandated to spearhead and construction of Entebbe oversee the establishment, development, International Airport Free management, marketing, maintenance, supervision and control of Free Zones and Zone to Gen. James Mugira – Managing Director, National Enterprise Corporation (NEC)
FIRST PUBLIC FREE ZONE IN UGANDA ESTABLISHED AT ENTEBBE INTERNATIONAL AIRPORT
n 23rd September 2020, Uganda Free will house seven (7) production units and a to an increase in Uganda’s exports. It will other related matters. Zone Authority (UFZA), handed over Trade house that will host offices of UFZA, URA also directly contribute cargo volumes to Othe site of five (5) acres of land to and other Government offices to facilitate recently revived Uganda Airlines thereby Free Zones are customs-controlled National Enterprise Corporation (NEC), the smooth flow of business in the Zone. boosting its business as the company secures areas where goods introduced into the commercial arm of the Uganda People’s more routes. designated area are generally regarded so Defence Force (UPDF), to embark on the The Chairman, Board of Directors, Eng. far as import duties are concerned as being initial phase of construction of the first Public Dr. Feredrick Kiwanuka said that the UFZA is required to establish strategically outside the Customs territory. The Free Zones Free Zone in Uganda. proposed sectors for the project include: located Public Free Zones equipped with all are schemes set up by Government to boost food processing (agro-processing), mineral required infrastructure to afford Operators export-oriented investment. UFZA acquired 5 acres of land from processing, warehousing, storage, simple ‘plug and play’ facilities to enable them By Doreen Kembabazi Uganda Civil Aviation Authority (UCAA) assembly, etc. All Operators in this Public Free seamlessly undertake the business of The writer is a Public Relations Executive, for development of the Free Zone at the Zone will process their products for onward manufacturing, value addition of products Uganda Free Zones Authority Entebbe International Airport. export through Entebbe International for onward export without the hustle to Tel: +256782664430 Airport. develop their own Zones. Email: [email protected] The Zone development is projected to cost about UGX 48 Billion. The Government of Speaking at the event, the Executive Director UFZA appreciates the contribution of GoU, Uganda (GoU) has already allocated UGX – UFZA, Mr. Hez Kimoomi Alinda said that the development partners, Private sector and 12.5 Billion for the first phase of the project Free Zone is expected to create at least key MDAs like MoFPED, CAA, MoWT, NPA, to kickoff. Upon completion, the Free Zone 240 direct jobs and significantly contribute Entebbe Municipality, UDC, NEMA, etc. for
34 MOFPED TIMES|ISSUE 1 MOFPED TIMES|ISSUE 1 35 BUDGET
MOFPED PROUD OF THE NATIONAL BUDGET MONTH INITIATIVE
By Apollo Munghinda ome time back, around June 2018, the Ministry of Finance, Planning and Director Economic Development (MOFPED), S Budget,Kenneth undertook a mindset change training and rebranding exercise, where the staff Mugambe pledged to improve the image of the Ministry in the eyes of the public. The Ministry had for long received not so good public reports suggesting that the Ministry was insensitive to their needs, that MoFPED operations were opaque, and divorced from reality and the needs and aspirations of Ugandans!
With such public pronouncements, it was summarily agreed at one of the budget breakfast meetings that something had process is not something you can ignore, score in budget transparency at 58% was to be done to clear these misconceptions and so, the Ministry opted for a scientific above the global average of 45%, and the about the Ministry. approach to implement the budget month best in East Africa and second in Africa after activities for FY2020/21 under the hashtag South Africa. This is how the Budget Week was born, #Knowyourbudget2020. driven by the desire to demonstrate to the This performance has been as a result of public that, the Finance Ministry was not a visitors to the exhibition stalls. These activities included; High level pre- increased availability of budget information lone wolf, that its mandate addresses the budget speech dialogue, Launch of the and opportunities for the public to engage core needs and aspirations of the people Government directly interacted with over Uganda Public Finance Management in the budget process. of Uganda, transparent in operations and 14,000 Ugandans and indirectly reached Act (PFMA), 2015, Post-budget speech As part of the budget transparency initiatives, focused on effective service delivery. out to the wider public via the traditional E-Conference and the regional post-budget the Ministry of Finance will continue to media and new media platforms. There speech media engagements. engage citizens in budget formulation to That year, 2018, the Ministry invited members were over 73,000,000 impressions created improve budget transparency and public of the public at it offices for an interface on social media about the national budget. A number of radio and TV stations as well as participation. with the aim of bridging the existing 83.5% of the participants at the regional online platforms were quickly mobilized to communication gaps that existed. budget breakfast engagements for FY reach out to the public across the country We are also aware that these engagements 2019/20 indicated that they were better to enhance awareness about the national have heightened accountability for public That MoFPED budget week (FY 2018/19), informed about the national budget and its budget, which is essentially the people’s resources by MDALGs and facilitated citizens’ attracted other 48 exhibiting institutions and importance to the country. budget. Over 5 million Ugandans were involvement in monitoring government over 230 visitors showed up for the service reached through the various platforms. programmes in their communities. excellence exhibition. The budget month activities were on top of Uganda’s social media agenda from Since its inception therefore, the budget Even as Government embarks on the As they say, the rest is history, the budget the time of their launch, to the time when month has enhanced public awareness, implementation of NDP III, the identified week transformed into the budget month the last activity was held, occasionally ownership and understanding of the national service delivery gaps and feedback and became a Premier activity on the trending in the top position with the hashtag budget, particularly the resources allocated obtained from these engagements including Ministry’s calendar. In FY2019/20, the #knowyourbudget19. to Ministries, Departments, Agencies and the Local Government consultative national budget month (NBM) jointly Local governments (MDALGs). workshops will feed into the government implemented in partnership with Uganda When COVID19 arrived in March 2020, planning and budgeting framework. Revenue Authority (URA) and the Civil we were in the middle of preparations for It has also increased the level of public Society Budget Advocacy Group (CSBAG) another mega engagement with the public. knowledge about their tax obligations which The writer is a Principal Communications attracted 143 exhibiting institutions (122 Alas, this was not going to be possible. has in turn facilitated tax compliance. Officer/Head Communications at the Government agencies and 21 Civil Society Could we just give up? No, the significance The recently released Open budget survey Ministry of Finance, Planning and Economic Organisations) and an estimated 4000 of public engagement in the budget 2019 results, indicate that Uganda’s overall Development.
36 MOFPED TIMES|ISSUE 1 MOFPED TIMES|ISSUE 1 37 Ministry of Finance,Planning and Economic Development
Ministry of Finance,Planning and Economic Development home on plot 2-12 &2A,Apollo Kaggwa Road.
This Building was opened by H.E the Hon John Kabwimukya Babiiha M.P Vice President/Minister of Animal Industry Game and Fisheries of the Repblic of Uganda on the 22nd August 1968
38 MOFPED TIMES|ISSUE 1 MOFPED TIMES|ISSUE 1 39 BUDGET 2021/2022 Budget Gov’t ear-marks 18 programmes tailored on NDP III
he 2021/2022 national Budget will focus According to the National Planning Authority on 18 programmes tailored on the third (NPA), the planning and budgeting will now TNational Development Plan (NDP III) be based on the 18 programmes recently which came into effect on 1st July 2020 as a agreed upon by Cabinet. successor plan of the NDP II. They include mineral development, private The Budget, which is estimated to be sector development, agro-industrialization, Hon. Matia Kasaija over shs 40 trillion will be under the theme; digital transformation, sustainable petroleum “Industrialization for inclusive growth, development, human capital development, Minister of Finance employment and sustainable wealth manufacturing, tourism development and creation.” sustainable energy development. Ministry of Finance, It will also be the second budget under Planning and Economic NDPIII whose goal is to increase average Others are; natural resources, environment, Development. household incomes and improve the quality climate change, land and water of life of Ugandans. management, integrated transport and services, sustainable urban development, According to a recent pronouncement technology transfer and development, Since NDP III is based on the programme The Government will also facilitate market by the Finance Minister Matia Kasaija, regional balanced development, approach, the sector working groups (SWGs) access for agro-manufactured products Government has decided to implement a community mobilization and mindset will now be replaced by the programme by engaging EAC partner states to remove programme-based budget for purposes of change, public service transformation, working groups (PWGs) and coordination non-tariff barriers especially for milk, sugar proper planning. governance and security and development will be along the NDP III programmes and poultry products. plan implementation. as opposed to the previous sector wide Kasaija at a recently concluded National approaches. Infrastructure Budget Conference for the financial The Chairperson of NPA, Prof. Pamela 2021/2022 held at the Office of the President Mbabazi, says that the programme Program Priorities for FY 2021/22 Under the Integrated Transport and (OP) auditorium revealed that the change approach is intended at achieving better Infrastructure Services, the priority will be in budgeting process has been necessitated alignment of the budget with results. Agriculture production and transport asset management through by the need to facilitate the implementation routine maintenance of transport networks of the third National Development Plan She added that it will also increase agro-industrialization especially community access and feeder (NDP III). implementation coordination and reduce roads for market access and increased
implementation challenges resulting from Government actions during NDP III period will funding to Uganda road fund, in addition uncoordinated planning and funding. be focussed towards improving the quality to fast tracking the construction and “It will increase harmonization by reducing of inputs, irrigation, integrating small holder completion of strategic oil and tourism
duplication, redundancy and wastage,” farmers in the supply chain, strengthening roads. It will increase she said. cooperatives and addressing storage and market side constraints. Government will also address issues of The programme approach, Mbabazi said, land compensation and acquisition harmonization by “ will also enhance synergies in order to The other budgetary emphasis is the full for development projects, upgrade of reduce the silo approach and enhance deployment and facilitation of recruited aerodromes and development of Bukasa uniform implementation across all sectors. agricultural extension workers with transport, Port. “ According to Mbabazi, it will also increase equipment and tools. reducing duplication, sequencing of programmes and sub- Also planned for execution is The Uganda programmes, align these programmes and Regarding agricultural financing, Railway Corporation (URC) capacity redundancy and enforce judicious use of resources. government will increase the availability of building project (Rehabilitation of Kampala- capital by scaling up the agricultural credit Malaba Metre Gauge Railway line will also Under the new changes, each program facility as well as increasing capitalization of be worked on. wastage. has an implementation action plan whose Microfinance support centre, the Uganda actions will be funded within the annual Development Bank and the Uganda In the area of energy, government, the budget. Development Corporation. measures for the coming fiscal year include >>>
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enhancing the distribution and transmission quality secondary education by retooling networks, addressing intermittent electricity of secondary schools, increased access to power supply, completion of Karuma dam basic vocational training for youth, as well and promoting use of renewable energy. as promoting apprenticeship and graduate DEVELOPMENT POLICY volunteer schemes. Improving health care services Supporting the Private Sector and perfomance web portal Public health investments have led to improved life expectancy, and effective FY Government will also focus on supporting 2021/2022 government will direct attention the recovery and enhancing the country’s and resources to increase universal health micro, small and medium enterprises which activated access from 44% to at least 65% and emphasis accounts for nearly 72% of the private jobs. will be put on the most pressing public health Measures will be taken to increase local issues which include malnutrition, infant and content participation in development Introduction relevant to the mandate and functions of maternal mortality as well as communicable projects through increasing the value MFPED. and non-communicable diseases. of public contracts and sub-contracts 1.The Development Policy and Performance awarded to local firms especially in the (DPP) Portal by Ministry of Finance, Planning 7.The Knowledge Centre provides access Priority will also be on implementation of the infrastructure projects. and Economic Development (MoFPED) is to a wide range of reference materials national health insurance scheme to close another milestone in MoFPED’s commitment on Uganda’s development landscape public funding gaps in the health sector Rugunda speaks to improving the relevance, reach and including Policy Briefs, Reports, Research and also actualise the Uganda national reliability of its services to Ugandan citizens Studies and Development Updates. ambulance system to allow participation According to the Prime Minister of Uganda, and stakeholders in Uganda’s development of the private sector in the provision of Dr Ruhakana Rugunda, the specific budget process. How does one access the DPP Portal? ambulance services. intervention areas will be in line with the five key objectives of the NDP III. 2.The portal aims at facilitating education 8.The DPP Portal can be accessed by computer or smartphone from MFPED’s Human Capital Development and engagement on Uganda’s They will include enhancing value addition development policy and its performance in primary website: http//:www.finance.go.ug a simple, factual and cost-effective manner, It can also be accessed directly from the Regarding human capital development, in key growth opportunities, private consistent with the Country’s e-Government following URL: https://www.development. focus will be facilitating the acquisition investments to create jobs, infrastructure agenda. go.ug of appropriate skills set which have high development, productivity and social well- potential for job creation for the youth being of all Ugandans and strengthening What is the Development Policy and in areas of manufacturing, minerals the role of the state to guarantee security Inquiries and feedback Performance (DPP) Portal? development and agro-processing. and good governance. 9.For additional information about the DPP 3.The DPP Portal is a new addition to MFPED’s Priority will also be on rolling out early Rugunda says the budget strategy for the Portal, Please contact our Communications portfolio of secondary websites. The Portal is grade reading and early grade maths in financial year 2021/2022 should focus on Team: a reference gateway and a comprehensive all primary schools to enhance literacy improving performance challenges by online platform that provides up to-date and numeracy, increasing access to Ministries, Departments, Agencies and Local Office: Room 4.2, MoFPED; Tel: 0414 707 Governments for better service delivery. information on Uganda’s development 432. You can also reach us by email: Government plans to strengthen its agenda, performance and outlook at both [email protected] implementation mechanism by improving national and sub-national level. the implementation of the sub-county model and strengthening public investment What is on the DPP Portal? management function to maximise and ensure timely realisation of public investment 4.The DPP Portal consists of an eight-item dividend. primary menu: Development Frameworks; Development Drivers; Development The Local Development Partners group in Outcomes; Public Services for Development; their statement lauded government for Knowledge Centre; Quick Facts and Figures; improvements in aligning the budgets with and Feedback Interface. Each of these the National Development Plans. items has a range of subject matter sub- items that are logically organized for friendly “We are committed to engaging more navigation and to address issue-specific closely in the preparation of the 2021/2022 interests. budget,” said the Development Partners. They also congratulated Uganda for joining 5.MFPED pledges to protect and promote the Extractive Industries Transparency data accuracy, timeliness and completeness Initiative (EITI) in August 2020, noting that the in its management of the DPP portal. The extractive industry can provide a significant information provided on the DPP portal, will contribution to Uganda’s development if its accordingly, be processed in accordance revenues are managed transparently and with the highest professional standards. invested for the population’s benefit in the Chairperson NPA long term and in an inclusive matter. 6.The Portal also features links to websites Prof. Pamela Mbabazi of Ministries, Authorities, Local Governments (MALGs) with content that is related or PS/ST Muhakanizi (L) and Ag. Commissioner EDPR Joseph Enyimu.
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gram Budget System,” he said. them.
LG Leaders and Civil So far, 18 programs have been earmarked Regarding the financing of the budget for FY in planning for next financial year budget 2021/22, the Minister emphasised the need which is structured under the theme: “Indus- to boost domestic revenue mobilisation and trialization for inclusive growth, employment limit external and domestic borrowing to re- and wealth creation.” duce the debt burden for the country which Society speak out was on the increase due to the need to fi- The programmes include agro-industrializa- nance the budget deficit. tion, mineral development, private sector development, digital transformation, hu- The Permanent Secretary and Secretary on budget and service delivery man capital development, sustainable pe- to the Treasury, Keith Muhakanizi told local troleum development, manufacturing, tour- government leaders from greater Masaka ism development and sustainable energy who convened in Masaka City to deal with development. the challenge of poor performance. “You need to learn from Districts performing n order to guide local governments (LGs) NDP III Structure. Others are; natural resources, environment, well such as Bushenyi.It is still a long way to through the budget process for the finan- climate change, land and water manage- go but we need to improve in those areas,” Icial year 2021/2022, several consultative He added; “When we give you money, ment, integrated transport and services, said Muhakanizi. workshops across the country in 24 regional spend it in according to the law as quickly sustainable urban development, technol- centres were held in line with section 9 (1) and possible. Don’t keep the money in your ogy transfer and development, regional He also urged them to allocate resources and (2) of the Public Finance Management shelves. If the money is well spent, the econ- balanced development, community mo- to the highest priority areas for economic Act (2015). omy will grow,” he said. bilization and mind-set change, public ser- recovery, sustaining livelihoods and invest- vice transformation, governance and secu- ment in key growth enablers such as infra- At a budget consultative workshop for dis- Kasaija said following the approval of the rity and development plan implementation. structure development and skills develop- tricts and municipalities in the central re- NDP III, a comprehensive review has been Subsequently, money will be allocated to ment. gion at Ridar Hotel in Mukono district, the undertaken to align the Chart of Accounts programmes rather than sectors. Finance Minister, Matia Kasaija emphasized to NDP III structure and to eliminate duplica- He also said they should make the created infrastructure, peace and stability, develop- tions and overlaps in revenue and expendi- In West Nile, State Minister for Finance in cities centres of production and industrial- ment, education, health and salaries as key ture codes in accounting systems. Charge of General duties, Gabriel Ajedra ization. budget lines for local governments. officiated at the budget consultative meet- “You’re therefore expected to prepare your ing in Arua City, where he called upon local In Mbale City, Deputy Secretary to the Trea- “It’s a do or die. You must prioritize. A wise budgets for the financial year 2012/22 in line government leaders to exercise frugality in sury Patrick Ocailap who represented the Fi- person prioritizes because there can never with the revised Chart of Accounts and Pro- the management of resources allocated to nance Minister Matia Kasaija told local gov- be enough money,” Kasaija said. >>>
He informed technical political leaders that Covid-19 pandemic had forced govern- ment to rethink the fiscal strategy, most es- pecially on domestic revenue mobilization and improvement of public spending effi- ciency.
“We must be very frugal this time because our fiscal deficit has widened. There are things you should focus on while budget- ing,” he said.
According to Kasaija, Covid-19 and other natural disasters have impacted lives and economic activities posing challenges that include; reduction in domestic revenue leading to increase in fiscal deficit from 4.9% in 2018/19 to 7.2% in 2019/20 fiscal year. He said the deficit is projected to widen further to 9.8% in the next financial year.
In order to focus the economy, Kasaija reit- erated the need to align the budget to the third National Development Plan (NDP) III.
“I call upon you to embrace the National Development Plan (NDP) III approach and align your local government/City strategic plans, annual work plans and budgets to the Deputy Secretary to the Treasury, Patrick Ocailap ED CSBAG, Julius Mukunda Mayor Njeru MC,Yasin Kyazze
44 MOFPED TIMES|ISSUE 1 MOFPED TIMES|ISSUE 1 45 Participants at Ridar Hotel Seeta.
ernment leaders from Elgon region and Teso funding to the local governments saying ka Amooti, government should consider cient systems in place to efficiently mobilize to adhere to the budget guidelines. that currently the biggest percentage of increasing mechanical imprest saying that revenue to meet their development needs. funding was going into administrative costs. the current figure is insufficient for spare Njuba added that their revenue mobiliza- “I wish to reiterate that once the budget is “We are more likely to have more councillors parts and other mechanical maintenance. tion performance has persistently remained approved, it can only be adjusted within the whose allowances are based on 20% local The Chief Finance Officer Kumi requested poor and this is partly attributed to low levels provisions of the PFM Act 2015,” said Oca- revenue of the previous financial year which Ministry of Finance to consider supporting of economic development within the rural ilap. has been affected by covid-19,” he said. their local revenue enhancement plans to areas and inadequate databases. Njuba become functional for purposes of alterna- advised that more funding should be direct- For FY 2021/22, Ocailap said the districts The Town clerk of Makindye Ssabagabo tive financing for local governments. ed into education and health sectors. whose sub-counties have been annexed to Municipality in Wakiso District, Joseph Kim- the Cities have had their indicative planning bowa, called for change of policy when it Other issues raised by local government She disclosed that consultations in 86 districts figures (IPFs) adjusted accordingly and the comes to seed schools to enable urban ar- leaders across the country which they want by CSBAG indicate that health facilities are respective accounting officers are expect- eas with limited land to benefit the budget to address include; financing for under staffed with equipment inaccessible ed to budget accordingly. urbanisation, physical planning, and waste to persons with disabilities. The Kasanda LC 5 chairperson Zayid Kale- management for urban councils, transport On delayed payment of salary, pension, ma said the 2021/2022 budget should avail for Mayors, and additional resources for ef- Njuba pointed out that schools have inad- and gratuity arrears, the Minister said it was funds to operationalize new administrative fective service delivery in health, education equate infrastructure, with many learners unacceptable not to pay verified claimants units that were gazzeted but they remain and roads sector. still having classes under trees. She said that on time, when money is released in the first unfunded to start off. schools need more toilet stances to cater for quarter of every financial year by the Fi- They are also concerned about low staffing girls, boys and teachers. nance Ministry. “The Electoral Commission (EC) is going levels in the local governments which hin- ahead to nominate leaders. It will be very ders effective service delivery. She also advised that local governments “Effective FY 2021/22, I have added ac- shameful to have leaders in office without should prioritize routine maintenance of countability for arrears, and timely payment necessary support,” he noted. CSBAG speaks out community access roads and improve asset of arrears on financial reporting to the re- management and disposal. quirements for appointment of an Account- Mayor Njeru Municipality Yasin Kyazze point- The Civil Society Budget Advocacy Group ing officer,” said the Minister. ed that the road network mainly in the new- (CSBAG) budget policy specialist, Sophie Njuba said that government should pur- ly created administrative units were in a sorry Nampewo Njuba said; “The shift from sector chase surplus produce from farmers for stor- What LG leaders said during Budget state asking government to avail them with to the program approach will combine the age at the respective district buffer stores as consultations road units that can enable them to tarmac efforts of various actors and this will reduce this will stabilize agricultural product prices. their roads. duplication.” The Mukono Municipality Mayor, George Kagimu asked government to provide more For the Mubende LC V chairperson Kibuu- She said that local governments need suffi-
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Finance Minister Kasaija signs Shs14b Grant Agreement (Covid-19 Fund) with Out-Going Japanese Finance Minister Matia Kasaija announcing NSSF latest interest Rate - September 2020 State Minister,Planning,Hon David Bahati in Parliament. He was voted the Best Member of Ambassador Kazuaki Kameda on 22nd Sept.2020 in Kampala the 10th Parliament ( Parliamentary Performance Score card 2018-2019)
Minister of State for Investment,Hon Evelyn Anite (centre) com- Hon. David Bahati (yellow tie, behind row) at the inauguration of Finance Minister Kasaija and Hon Kasolo launching Emyooga in missioning Lato Yorgurt,a product of Pearl Dairy in Mbarara on 3rd the new Board of Directors of UBOS chaired by Dr. Albert Byamugi- Bunyoro October 2020 sha on 14th October 2020.
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FarewellKodak Lunchon for moments now Retired Under Secretary and Accounting Officer,Betty Kasimbazi,Commissioner Debt Policy and Issuance,Godfrey Dhatemwa and Stenographer Secretary,Lucy Bithum at Kampala Serena Hotel on 22nd September 2020.
50 MOFPED TIMES|ISSUE 1 MOFPED TIMES|ISSUE 1 51 ADVERTORIAL KEY TIMELINES FOR THE BUDGET PREPARATION No. Activity PFM ACT 2015 Working Timeline
1. Issue the First Budget Call Circular 15th September Friday 18th September 2020 2. The National Budget Conference for FY 2021/2022 N/A Thursday 17th September 2020
3. Regional consultations with Local Governments N/A Monday 28th Sept 2020 - 16th Oct 2020 4. Submission of Sectoral Budget framework papers to MoFPED [Section 9(2)] 15th November Friday 6th November 2020
5. Submission of the National Budget Framework paper FY 2021/2022 to Parliament By 31st December Tuesday 15th December 2020 [section 9(5)] 6. Approval of the National Budget Framework paper by Parliament[section 9(8)] By 1st February By Tuesday 21st January 2021 7. Issue the second Budget Call Circular FY 2021/2022 15th February By Tuesday 9th February 2021 8. Presentation of the Ministerial Policy statement to Parliament [Section 13 (13)] By 15th March By Thursday 11th March 2021
9. Presentation of the Annual Budget in Parliament 1st April By Thursday 25th March 2021
10. Approval of Annual Budget [Section 14 (1)] By 31st May Thursady, 19th May 2021
11. Reading of the Budget Speech for FY 2021/2022 in Parliament By 2nd week Thursday 10th June 2021 Before 1st July 52 MOFPED TIMES|ISSUE 1 THE REPUBLIC OF UGANDA
Ministry of Finance,Planning and Economic Development. 0414707259,0414707319,0414707115, 0414707109 plot 2-12 &2A,Apollo Kaggwa Road. www.finance.go.ug
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