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Mofped Times Issue THE REPUBLIC OF UGANDA NCF: Shaping Investment Policy & Private Sector Development +UGANDA’S ECONOMIC PERFOMANCE Prior to 2021 General Elections EXCLUSIVE INTERVIEW AG: LawrenceWITH Semakula ON PUBLIC FINANCE MANAGEMENT REFORMS Contents4. PS/ST’s Note 8. Editor’s Note 11.PS/ST’s Circular Highlights 12.Support National Public Sector Procurement Policy implementation for a better Uganda - Kasaija 16 43. Did you know? 46. Highlights on Uganda’s VISION tax system 50. INTERVIEW: Julius “ A Compe��ve Economy for Na�onal Development” Mukunda - CSBAG Executive Director 52. MoFPED working with 38 50 Partners MISSION 53. Monitoring Government 14. Challenging but Optimistic adherence to the To Formulate Sound Economic Policies, Maximize 16. “GREEDY VISITOR” COVID- 19 PFMA, 2015 20. INTERVIEW: We have reformed 54. Enhancing Government Revenue Mobiliza�on, Ensure Efficient Alloca�on and Public Finance Management of Uganda’s budget Accountabilty for Public Resources so as to Foster Sustainable 27. ZOOM Security Challenges transparency ranking 28. Investors Assured 56. AG’s Annual Report Economic Growth and Development 32. Qoute 2019/2020 34. National BFP at a glance 58. Making gaming Fairer & 36. Uganda’s Bold step to boost its Safer CORE VALUES business competitiveness 60. Uganda Microfinance 42. EDPR Regulatory Authority Professionalism, Result - oriented, Efficiency and Commences licensing process for SACCOs. Effec�veness, Teamwork, Integrity, Transparency and Innova�veness THE REPUBLIC OF UGANDA 11 64. Pictorial PUBLISHED BY Ministry of Finance,Planning and Economic Development. 0414707259,0414707319,0414707115, 0414707109 plot 2-12 &2A,Apollo Kaggwa Road. www.finance.go.ug NCF: Shaping Investment Policy & Private Sector Development EDITORIAL +UGANDA’S ECONOMIC Keith Muhakanizi, Editor-In-Chief PERFOMANCE Prior to 2021 General Elections Apollo Munghinda, Editor EXCLUSIVE INTERVIEW Isaac Shaka AG: LawrenceWITH Semakula Junior Muhumuza ON PUBLIC FINANCE MANAGEMENT REFORMS DESIGN AND LAYOUT Julius Kamya Andrew ­ COVER PAGE PHOTOGRAPHY MOFPED @mofpedU MoFPED Press Team MOFPED#DOING TIMES|ISSUEMORE 2 3 Keith Muhakanizi PS/ST’s NOTE Permanent Secretary and Secretary to the Treasury Ministry of Finance, Planning and Economic Development. Greetings Happy New Year to all our Stakeholders, I welcome you to this Issue of the MOFPED TIMES, a platform that has been designed to enhance knowledge and understanding about MoFPED and its core mandate. First of all, I congratulate the People of Uganda upon electing their leaders for the next five years. I am particularly pleased to note that despite the challenges we are facing, including the effects of COVID-19, our economy has remained resilient and there are signs of great recovery. Now that the electoral process has ended, I call upon Ugandans to engage in productive activities so that our economy can even grow stronger. This is my clarion call to all Ugandans because no one else will do it for our Country. We shall continue to formulate sound economic policies that enhance economic stability and development. I am optimistic that the Economic interventions spelt out in NDP III will lead this Country to middle income status sooner than later. I wish you pleasant reading! Keith MuhakaniziPermanent Secretary and Secretary to the Treasury 4 MOFPED TIMES|ISSUE 2 MOFPED TIMES|ISSUE 2 5 Artistic impression of the new Office block for MoFPED Construction of the new Office block for MoFPED in progress 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 2 MOFPED TIMES|ISSUE 2 7 EDITOR’S NOTE Dear Stakeholders, Happy New Year 2021! In this Issue of the MOFPED TIMES we bring you more privileged Insights! In an exclusive interview, the Accountant General, Lawrence Semakula takes you on the journey of managing Uganda’s public resources and the reforms that have been put in place to safeguard public finances. Also in this Issue, read about Private Sector Development in Uganda and its huge impact on the Economy. Did you know that our Economy has been rated as one of the best globally in the midst of COVID-19 pandemic and its effects? What about the reforms aimed at saving billions of public funds siphoned annually through public procurement? These and more, including testimonies that Partnerships work are all in this edition of the MOFPED TIMES. Finally, next time you plan to have a Zoom meeting, we give you tips on how to secure your experience. Enjoy your reading! Apollo Munghinda Principal Communications Officer Apollo Munghinda Principal Communications Officer Ministry of Finance, Planning and Economic Development. 8 MOFPED TIMES|ISSUE 2 MOFPED TIMES|ISSUE 2 9 PS/ST’s CIRCULAR HIGHLIGHTS 3RD QUARTER (JANUARY TO MARCH) EXPENDITURE LIMITS FY 2020/2021 The Expenditure limits were based on the Government Annual cash plan adjusted to take into account revenue performance in the first half of the Financial Year and the projected revenue collections to the end of the Financial Year 2020/21 The expenditure limits also took into account Cabinet decision on the efficiency savings from the non-critical activities in light of the COVID-19 Pandemic and these include workshops and seminars, National Day celebrations, Travel abroad, Welfare and Entertainment. The Expenditure limits fully prioritised Salaries, Pension and Gratuity in line with the Quarterly projections and submissions received from Accounting Officers. The Supplementary expenditure requirements which were approved by Parliament were accommodated in this release. One-half of (50%) of the Annual Budget for Missions was released to minimise loss on poundage while one third of the Local Government Development allocation was programmed for release in this third quarter to avoid un spent balances at the end of the Financial Year. Regarding external financing, the third quarter allocations are based on received and projected disbursements by the Development Partners. Rent and Utilities payment should have first call on third quarter allocations for the non- wage recurrent budget of votes. Accounting Officers have the responsibility of making timely payments of Salaries, Pension and Gratuity (28th day of every month) and within 14 days for supplies and other services provided by the Private Sector. Funds for Capitation grants to cover term one of the school year were also provided this quarter. However only funds for candidate classes and requirements to meet Standard Operating Procedures (SOPs) were initially released to schools. The Expenditure limits fully prioritised Patrick Ocailap Deputy Secretary to Salaries, Pension and Gratuity in line the Treasury with the Quarterly projections and Ministry of Finance, Planning and submissions received from Accounting Economic Development. Officers. 10 MOFPED TIMES|ISSUE 2 MOFPED TIMES|ISSUE 2 11 absorption, increase in domestic arrears and in some cases cost over runs, according to the Support National Public Ministry. The Finance Ministry maintains that it was more critical for Uganda to put in place such Sector Procurement Policy a policy framework to propel the public sector procurement system to deliver value for money in all government attainments. implementation for a better Kasaija explains that through sustainable public procurement, the policy will open doors for inclusive growth to the local industries, innovation, local content, the environment Uganda - Kasaija and support for marginalized groups among others. In the year 2019, the Ministry of Finance the public procument system. Its focus is also “I strongly urge all Ugandans to support the launched a procurement policy whose achieving a strengthened and enhanced implementation of the policy for a better primary objective was to improve public knowledge, skills and attitudes of the human Uganda,” Kasaija said. sector procurement in the country to be a resource interfacing with public procurement. socialeconomic tool in fostering economic The decision by the Finance Ministry to have development and transformation. The Minister said that the policy formulation the policy formulated was also informed by process also put into consideration regional policy analysis of different reports that included National Public Sector Procurement System The National Public Sector Procurement Policy cooperation and integration under the East the Auditor General’s reports, Internal Audit (NPSPS). The NPSPS is the overall framework for (NPSPP) which was formulated and approved African Community (EAC) and that it was reports, the Public Procurement and Disposal public procurement in any given country. by the Cabinet on April 1, 2019, introduced a harmonized with the international protocols of Public Assets (PPDA) audit reports of 2011 paradigm shift from the traditional approach and declarations. /2012, among others. It was realized that there According to the Accountant General, that views public sector procurement as an was need to provide guidance on the strategic Lawrence Semakula, since the early 1990s, operational function to a strategic function. The EAC advocates for member states direction of public sector procurement in to establish harmonized public sector the government has been pursuing strategic Uganda. reforms in public financial management Its vision is “A model public procurement procurement policy frameworks
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