“The treasury itself is in emergency,” Muhakanizi said, signaling the dire need for money that the country is in. Government has been asked to amend the budget for next financial year and reflect the situation.
Keith Muhakanizi says country will experience no growth at all.
The Secretary to the Treasury, Keith
Muhakanizi has said Uganda will be
lucky to grow at all in the calendar year 2020, underlining the extent of battering
the Coronavirus (COVID-19) has had on the country’s economy.
Muhakanizi was today speaking at an event to open the pre-budget dialogue week in Kampala, organized by civil society. Muhakanizi
said “we will be lucky to get above 0% growth for the calendar year.”
candid projection speaks of a spectacular fall from the 6% projection that
government had hoped for without the COVID-19 crisis.
financial year 2019/2020, which runs from June 2019 to June 2020, growth is
still projected at 3.5%, also a drop from 6% earlier projected. Low growth
means limited employment and less tax revenue. Several companies have laid off employees or cut their pay to stay in business.
of Finance Permanent Secretary said while many people have been commenting on
the economy, he was in the ‘kitchen’ cooking and knows exactly what is going on.
treasury itself is in emergency,” said Muhakanizi, signaling the dire need for
money that the country is in. Government has been asked to amend the budget for
next financial year and reflect the situation.
said government will immediately be adjusting the Shs 45trillion budget “not
just on the revenue side but also on the expenditure”. Government will present
its 2020/21 financial year budget next month.
not seen as priority will see cuts as resources are re-allocated to more
critical sectors. Cutting unnecessary expenditure, including on travel and
conferences is expected. This was one of the promises that government put up to
the International Monetary Fund as it sought for a loan in April.
space is almost zero,” Muhakanizi says of Uganda’s inability to fund most of its
priorities. “It is not just Uganda alone but across Africa.”
technocrat lashed out at parliamentarians for going ahead to create new
governance entities with no budget to run them. Last month, Parliament approved
15 new municipalities expected to start operations on July 1. Muhakanzi
insisted there was no money to run them.
Bakunda, the Civil Society Budget Advocacy Group (CSBAG) executive director,
said he was pleased government saw the need to refocus the budget to reflect
the available resources.
the Uganda Revenue Authority commissioner for domestic taxes, said what the tax
body has witnessed in the last three months has never happened in the entity’s
imports have dropped, domestic production also down together with employment,
taking away key areas where they collect money.
collected 960bn Uganda shillings in taxes in April – registering a shortfall of
Shs 630bn. Government expected to collect at least 1.6tn Uganda shillings in taxes in April.
said the collections were better than they expected, given that the entire
month of April was under lockdown.