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Ministerial Policy Statement THE REPUBLIC OF UGANDA Ministry of Finance, Planning and Economic Development Ministerial Policy Statement For VOTE 008: Ministry of Finance, Planning and Economic Development March 2021 Ministry of Finance, Planning and Economic Development Ministerial Policy Statement FY 2021/22 Vote: 008 Ministry of Finance, Planning & Economic Development Foreword Rt. Hon. Speaker, In line with Section 13 (13) of the Public Finance Management Act, 2015 (as amended), I wish to present the Ministerial Policy Statements for FY 2021/22 for Vote 008 (MOFPED) and Twelve Statutory Votes under my Ministry namely: i. Vote 130: Treasury Operations; ii. Vote 141: Uganda Revenue Authority (URA); iii. Vote 143: Uganda Bureau of Statistics (UBoS); iv. Vote 153: Public Procurement and Disposal of Assets (PPDA); v. Vote 129: Financial Intelligence Authority (FIA); vi. Vote 310: Uganda Investment Authority (FIA) vii. Vote 313: Capital Markets Authority (CMA); viii. Vote 314: National Lotteries and Gaming Regulatory Board (NL&GRB); ix. Vote 315: National Population Council (NPC); x. Vote 316: Uganda Free Zones Authority (UFZA); xi. Vote 317: Uganda Microfinance Regulatory Authority (UMRA); xii. Vote 318: Uganda Retirements Benefits Regulatory Authority (URBRA) Madam Speaker, the budget for FY 2021/22 has been prepared amidst economic recovery challenges from the COVID-19 Pandemic. In spite of that, my Ministry assessed the economy wide impact of COVID-19 in order to identify revenue and financing measures that are feasible within the context of the prevailing socio- economic circumstances. This enabled us to come up with a more realistic resource projection for the coming fiscal year 2021/22, consistent with the Charter for Fiscal Responsibility. The revised resource projection and the recommendations of Parliament on the National Budget Framework Paper (NBFP) formed the basis for final budget preparation. The resources available were communicated to Ministries, Departments and Agencies (MDAs), to enable them embark on the preparation of their final Budget Estimates and Ministerial Policy Statements for Financial Year 2021/22. The Ministry budget, resource allocation and priorities for FY 2021/22 contained in the Policy Statement is aligned to the Vision 2040, Third National Development Plan (NDP III), the Programme Implementation Action Plan (PIAPs), the Budget Strategy for FY 2021/22, the NRM Party Manifesto, the priority areas of H.E the President and the approved National Budget Framework Paper for FY 2021/22. i Ministry of Finance, Planning and Economic Development Ministerial Policy Statement FY 2021/22 Vote: 008 Ministry of Finance, Planning & Economic Development Madam Speaker, in order to ensure achievement of results for efficient and effective public service delivery for all Ugandans, resource allocation for the above Votes is in line with the objectives of Program Based Budgeting (PBB) and the Programme Implementation Action Plans for FY 2020/21-FY 2024/25. Accordingly, in FY 2021/22, our interventions are directly contributing to two out of the eighteen (18) NDP III Programmes including: i. Programme 18: Development Plan Implementation; ii. Programme 06: Private Sector Development; Madam Speaker, the Policy Statements highlight semi-annual, financial and physical performance for FY 2020/21 as well as expenditure priorities and targets for the FY 2021/22 and the medium term as follows: 1. Vote 008 – Ministry of Finance, Planning & Economic Development Madam Speaker, in line with the Ministry’s mandate of: formulating policies that enhance economic stability and development; mobilizing local and external financial resources for public expenditure; regulating financial management, enhance efficiency in public expenditure; and oversee national planning and strategic development initiatives for economic growth; Parliament appropriated UShs 742.841bn (excluding arrears) in FY 2020/21 to the Ministry out of which UShs 641.299bn was from GoU sources, while UShs 101.542bn was from Development Partners. Madam Speaker, in line with the Programme Based Budgeting (PBB), the interventions in this Ministerial Policy Statement will be implemented through eight Sub-subprogrammes namely: i. Macroeconomic Policy and Management; ii. Budget preparation, execution and monitoring, iii. Public Financial Management, iv. Deficit Financing and Cash Management, v. Development Policy and Investment Promotion, vi. Financial Sector Development, vii. Internal Oversight and Advisory Services, and viii. Policy, Planning and Support Services Through implementation of interventions in this Policy Statement, I am confident to significantly contribute towards the transformation of the economy over the long term into a prosperous and modern society envisaged in the Vision 2040. ii Ministry of Finance, Planning and Economic Development Ministerial Policy Statement FY 2021/22 Vote: 008 Ministry of Finance, Planning & Economic Development In FY2021/2022, the economy is projected to grow at 4.3%, up from a projection of 3.1% this financial year 2020/21. The projected growth is premised on the assumption that the negative consequences of the coronavirus pandemic will subside with the discovery of vaccines and optimism on the ongoing clinical trial of the locally researched and developed treatment. Over the medium term, growth is projected to peak at 7.0%, supported mainly by enhanced private sector activities due to increased aggregate demand post-COVID-19; increased returns from public infrastructure investments; improved production and productivity in agriculture and agro-industrialization as well as increased volume of activities in the oil and gas sector. Madam Speaker, for FY 2021/22, am seeking an allocation of UShs 762.272bn (excluding arrears), of which UShs 6.708bn is for wage, UShs 615.833bn is for non-wage recurrent expenditure, UShs 163.316bn is from domestic sources and UShs 76.415bn is from external sources for development projects. 2. Vote 130 – Treasury Operations Madam Speaker, in accordance with the Public Finance Management Act, 2015, Treasury is mandated to manage the accounts of Government and cater for statutory expenditures. Madam Speaker, for FY 2021/22, am seeking an allocation of UShs 15,404.459bn to enable payment of interest Vote meet its statutory obligations. 3. Vote 141 – Uganda Revenue Authority (URA) Madam Speaker, in order to fulfill its mandate, of improving tax administration for collection of tax revenue and non-tax revenue, for the FY 2021/22, I am seeking an allocation of Ush 536.660bn to facilitate URA in tax administration, increasing tax compliance and widening the tax base 4. Vote 143 – Uganda Bureau of Statistics (UBOS) Madam Speaker, in order to fulfill its mandate, UBOS implements regular core statistical program to guide National Planning. Madam Speaker, for FY 2021/22, am seeking an allocation of UShs 60.697bn to enable the Bureau enable the Bureau continue with production of official demographic, social and economic statistics for the Economy. iii Ministry of Finance, Planning and Economic Development Ministerial Policy Statement FY 2021/22 Vote: 008 Ministry of Finance, Planning & Economic Development 5. Vote 153 – Public Procurement and Disposal of Public Assets Authority (PPDA) Madam Speaker, in order to fulfill its mandate, the regulator implements planned activities in the broad areas of procurement and disposal audits, monitoring the performance and compliance of PDEs with particular emphasis on High Expenditure Entities; and building the capacity of key players in the public procurement system. Madam Speaker, for FY 2021/22, am seeking an allocation of UShs 23.283bn to enable the Authority execute its mandate. 6. Vote 129 – Financial Intelligence Authority (FIA) Madam Speaker, following enactment of the Anti-Money Laundering Act in 2014, FIA was established to foster the integrity of the financial system through effective detection and prevention of financial crimes. Madam Speaker, for FY 2021/22, am seeking an allocation of UShs 13.633bn to enable the Authority execute its mandate. 7. Vote 310 – Uganda Investment Authority (UIA) Madam Speaker, Uganda Investment Authority (UIA) was set up under the Investment Code 1991 as a Statutory Agency, mandated to initiate and support measures that enhance investment in Uganda and advise Government on appropriate policies conducive for investment promotion and growth. Madam Speaker, for FY 2021/22, am seeking an allocation of UShs 61.321bn to enable the Authority execute its mandate. 8. Vote 313: Capital Markets Authority (CMA); Madam Speaker, the Capital Markets Authority (CMA) was established in 1996 to: develop all aspects of the capital markets with particular emphasis on the removal of impediments to, and the creation of incentives for longer term investments in productive enterprise; create, maintain and regulate a market in which securities can be issued and traded in an orderly, fair and efficient manner, through implementation of a system in which the market participants are self-regulatory to the maximum practicable extent; protect investors’ interests; and operate a compensation fund. iv Ministry of Finance, Planning and Economic Development Ministerial Policy Statement FY 2021/22 Vote: 008 Ministry of Finance, Planning & Economic Development Madam Speaker, for FY 2021/22, am seeking an allocation of UShs 5.874bn to enable the Authority execute its mandate. 9. Vote 314: National Lotteries and Gaming Regulatory Board (NL&GRB) Madam Speaker, the national Lotteries and Gaming
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