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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 2020 Ministry of Finance, Planning and Economic Development Ministerial Policy Statement FY 2020/21 Vote: 008 Ministry of Finance, Planning & Economic Development Foreword Rt. Hon. Speaker, In accordance with Section 13 (13) of the Public Finance Management Act 2015, I wish to present the Ministerial Policy Statements for Vote 008 (MoFPED) and Six Statutory Votes namely: 130 (Treasury Operations); 141(Uganda Revenue Authority); 143 (Uganda Bureau of Statistics); 153 (Public Procurement and Disposal of Assets); 129 (Financial Intelligence Authority) and 310 (Uganda Investment Authority) for the FY 2020/21. Madam Speaker, in line with Government’s commitment to achieving a middle income status, resource allocation and priorities in these Policy Statements have been aligned to the following documents: Vision 2040, National Development Plan III, the Sustainable Development Goals (SDGs), the NRM Party Manifesto, H.E the President’s strategic directives, the approved National Budget Framework Paper for FY 2020/21, the Accountability Sector Strategic Investment Plan and the Ministry 5 year Strategic Plan that is ending in FY 2020/21. Madam Speaker, with specific reference to the NDP III, our interventions are contributing to programs under the following two out of the five objectives: i. To strengthen the private sector capacity to drive growth and create jobs, and ii. To strengthen the role of the public sector in the growth and development process 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). Madam Speaker, the Policy Statements highlight semi-annual financial and physical performance for FY 2019/20 as well as expenditure priorities and targets for the FY 2020/21 and the medium term as follows: 1. Vote 008 – Ministry of Finance, Planning & Economic Development Madam Speaker, in line with the Ministry’s 5-year Strategic Plan and the Ministry’s mandate of: prudent macroeconomic management, mobilizing domestic and external resources, regulation of financial management, and i Ministry of Finance, Planning and Economic Development Ministerial Policy Statement FY 2020/21 Vote: 008 Ministry of Finance, Planning & Economic Development ensuring efficiency in public expenditure, Parliament appropriated resources to this Vote in the FY 2019/20. The total appropriation was UShs 581.314bn (excluding arrears) of which UShs 489.915bn was from GoU sources, while Ushs 91.399bn was from Development Partners. Semi-annual performance for the Financial Year indicates that Ushs 287.444bn had been spent by end of December 2019 representing 58.7% budget performance. Madam Speaker, during the FY 2020/21, the Ministry will aim at ensuring sustainable economic growth of 6 - 7% through maintaining sound macroeconomic stability. Implementation of financial sector reforms will continue to be a focus in order to enhance private sector development and competitiveness, strengthening project analysis, strengthening program-based Budgeting, and Budget monitoring. Madam Speaker, in line with the PBB, the interventions in this Ministerial Policy Statement will be implemented through eight Programmes 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 these programmes, I am confident to significantly contribute towards the transformation of the Economy over the long term into a prosperous and modern society as envisaged in the Vision 2040. Madam Speaker, in line with Article 155 of the Constitution, for the financial year 2020/21, I am seeking an allocation of UShs 730.450bn (excluding arrears), of which UShs 6.708bn is for wage, UShs 549.134bn for non-wage recurrent expenditure, UShs 73.066bn is from GoU development and UShs 101.542bn 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 expenditure. ii Ministry of Finance, Planning and Economic Development Ministerial Policy Statement FY 2020/21 Vote: 008 Ministry of Finance, Planning & Economic Development I am accordingly seeking an allocation of UShs 13,328.843bn with respect to Debt Service, Arrears/ Court Awards, Contingency Fund and Capitalization of Bank of Uganda in FY 2020/21 to enable fulfillment of the Constitutional mandate of the Vote. 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 2020/21, I am seeking an allocation of UShs 438.255bn 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. For the FY 2020/121, I am seeking an allocation of UShs 60.081bn to continue with the production of official demographic, social and economic statistics for the Economy. 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 the FY 2018/19, I am seeking an allocation of Ushs 24.834bn to facilitate implementation of PPDA core activities and achievement of its strategic objectives. 6. Vote 129 – Financial Intelligence Authority (FIA) Madam Speaker, following enactment of the Anti-Money Laundering Act 2014, FIA was established to foster the integrity of the financial system through effective detection and prevention of financial crimes. Madam Speaker, for FY 2020/21, am seeking an allocation of UShs 13.283bn to continue with its mandate of preventing money laundering, combating financing iii Ministry of Finance, Planning and Economic Development Ministerial Policy Statement FY 2020/21 Vote: 008 Ministry of Finance, Planning & Economic Development of terrorism, prosecution and confiscation of proceeds of crime and providing international Cooperation and mutual legal assistance in Anti-Money laundering activities. 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 2020/21, am seeking an allocation of Shs 171.000bn to continue implementation of the institution’s mandate. Madam Speaker, I therefore beg to move that this August House considers the Budget estimates of the above Votes. For God and My Country Matia Kasaija (MP) MINISTER OF FINANCE, PLANNING AND ECONOMIC DEVELOPMENT iv Ministry of Finance, Planning and Economic Development Ministerial Policy Statement FY 2020/21 Vote: 008 Ministry of Finance, Planning & Economic Development Table of Contents Preliminary Foreword……………………………………………………………………………….………...i Abbreviations and acronyms………………………………………………………………..vi Structure of the MPS…………………………………………….…….……………………..xi Executive Summary…………………………………………………………………............xii Vote Overview Vote Mission……………………………………………………………………………………..1 Strategic Objective……………………………………………………………………………..1 Preliminary major achievements for FY 2019/20………………………………….......1 Summary of Medium-Term Budget Allocation Medium Term Plans: ……………………………………………………………...…………11 Key Vote Planned outputs for FY 2020/21…………………………………………….12 Overview of Vote Expenditures…………………………………………………...………..18 Budget by Economic Classification………………………………………………………..18 Budget by Programme and Sub-Programme………………………..…….................19 Program Performance and medium-term plans….…………………………….………21 Vote Challenges and Plans to Improve Performance….……………………………….32 Vote Cross-Cutting Policy and Other Budgetary Issues………………………………32 Off Budget Vote Estimates by Programme and Sub-programme………………..32 Staff establishment Analysis……………………………………………………………..33 Vote Recruitment Plan………………………………………………………………………..34 Staff Due for Retirement in FY 2020/21………………………………………………….. 40 Organogram….………………………………………………………………………………… 41 Staff List………………………………………………………………………….………..........42 Vehicle Utilization Report……………………………………………………………….…... 54 Sub-Programme Annual Workplan Outputs……………………………………………. 60 Quarterly Workplan………………………………………………………………………….. 167 Annual Cashflow Plan by Quarter……………………………………………………....... 329 Procurement Plan……………………………………………………………………………..330 Actions taken on recommendation of Parliament on OAG report………………….. 377 Assets Register (Refer to Annex 1) v MPS: Finance, Planning and Economic Development Abbreviations
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