State Minister of Finance David Bahati says that the move is intended to streamline the transport sector by getting rid of illegitimate cars and raising money for the maintenance of roads across the country. According to the breakdown, Car owners will pay 200,000 Shillings while motorcycle owners will pay 50,000 Shillings annually.
Parliament had authorized the government to borrow up to 445 billion Shillings (101.88 million euros) from the UK Export Finance for the development of the solar-powered irrigation and water supply system, a project which seeks to develop 920 water supply systems for both domestic use and irrigation nationwide over a three-year period.
Finance Minister, Matia Kasaijja, says the country is facing a problem of market for local goods, which has resulted in surplus yet farmers are ignoring calls for change. Some of the rejected products include milk, eggs, sugar and maize among others.
Kasaija told Uganda Radio Network that he has written a detailed report to the President explaining the processes that the Finance Ministry went through to approve DGF Funding and how the basket fund operates in Uganda. He, however, could not divulge details but added that the president's judgement was based on wrong information.
The Ministry has been allocated 30 billion Shillings out of a 58 billion Shillings request to facilitate its activities for the Financial year 2021-2022. Based on the shortfall, Oryem says they are frustrated by the failure by their counterparts in finance to prioritise diplomatic work and fund it appropriately.
According to a letter by Patrick Ocailap, acting permanent secretary ministry of finance, the government has committed a supplementary budget of 4.92 billion shillings to harmonize salaries of all staff at the learning institution in the fourth quarter of the current financial year.
Kampala City Traders Association Chairman Everest Kayondo says they have a chance to expand their businesses by investing in producing what they currently import, but they continue borrowing to import consumer products.
Ruhinda North MP Thomas Tayebwa says that many businesses are facing challenges accessing loans because of the COVID-19 risks, and fears that as the government moves to borrow, many banks will withhold money from Ugandans with the hope of lending to the government.
The first supplementary is to finance a classified budget of up to 1.5 trillion Shillings for the Ministry of Defence and Veteran Affairs and State House, and a cover a 20 per cent contribution (201 billion Shillings) towards the construction of the 223 kilometres of roads in the Democratic Republic of Congo (DRC), among others.
The Budget Committee members have raised concerns over the delayed distribution of the funds despite appropriation by parliament leading anxiety in the villages. While meeting Planning minister David Bahati the MPs also questioned the intent of government to allocate Shillings 50bn to Kampala during the campaign season.
The members of the Budget Committee were irritated by the allocation of the funds towards roads in the DRC when local roads in the country remain impassable. But Works minister Gen. Katumba Wamala said he hoped that the committee considers the project as a game changer in terms of trade and security.
Of the 3.4 trillion shillings, classified expenditure for Ministry of Defense and Veterans Affairs and State House takes a huge chunk of 1.5 trillion shillings while Greater Kampala emyooga will bag sh50b.
An assessment presented by UDB Executive Director, Patricia Ojangole shows that on average, 80 per cent of private sector businesses need financial help like physical cash, debt rescheduling or direct loans to be able to overcome the effects of the pandemic.
Export of fresh foods was the most affected as the aviation sector was closed down before a handful of cargo planes started operating at Entebbe and Jomo Kenyatta International Airports. However, dry commodities like coffee and gold continued thriving.
Gideon Badagawa, the Private Sector Foundation Uganda Chief Executive Officer says, this money is likely to be misused because the small and medium enterprises that they are supposed to go to, are not formal.