Do you know your budget?  Did you miss out on anything from the budget reading at Kampala Serena Conference Centre on Thursday?

Well, worry not…here is a recap of How It Happened , as well as related information and social media interactions in the buildup;

6:40pm

HOUSE ADJOURNED

6:34pm

President creates new funds

Museveni says that during his recent wealth-creation trips upcountry, he created more funds to empower the various groups. One of the funds is for value addition (for import substitution and export promotion), which will be on a zonal basis.

6:29pm

‘Help modernise families’

“My appeal to all leaders is, please work to modernise the families or a family under your influence, by convincing them to join the money economy,” urges the President.

 

6:23pm

I am a traditionalist who wants a stronger Africa – Museveni

Commenting on the divisive issue of the late Prof. Apolo Nsibambi’s heritage, President Museveni says: “I am a traditionalist, but a traditionalist who wants a stronger Africa.”

It emerged that the fallen former Prime Minister, before his death, had chosen his daughter to become his heiress. This decision sparked divided public opinion, with the conventional minds strongly critical of Nsibambi’s move and the liberal minds okay with it.

6:14pm

The transformation of people in the cattle corridor has enabled them to live better lives, install solar power, send their child to school, etc, says Museveni.

“Once you transform the households, you empower the country.”

 

5:37pm

‘I am an expert on Opposition issues’

Museveni says that for 24 years after Uganda’s independence, he was in the Opposition and therefore “I am an expert on Opposition issues”.

Laughter across the hall ensues.

 

5:30pm

Arrests of vandals

With the installation of security cameras, anybody seen vandalising public assets will be arrested and they will pay for whatever damage they have done. Same applies to vehicles that damage road furniture, says the President after cautioning the public to avoid shaking hands – and instead wave in greeting – because of the latest Ebola scare in the western part of the country.

5:27pm

President Museveni delivers his comments

After the finance minister steps off the dais with a rousing applause, President Yoweri Museveni steps forward to make his comments on what his minister has presented.

 

5:26pm

DEBT: Government to ‘exercise caution’

“Madam Speaker, I would like to assure the country that our debt remains sustainable in the medium to long term, assures Minister Kasaija.

“Government will continue to exercise caution while taking on new debt. The rate of debt accumulation is expected to reduce in the medium term, as flagship infrastructure projects are completed.”

In his concluding remarks, the minister urges “the youth and women of Uganda to seize opportunities that will build their skills”.

 

5:25pm

Resource envelope for new FY

 

Minister Kasaija says that the resource envelope for 2019/20 totals sh40.487 trillion, of which tax and non-tax revenue amounts to sh20.895 trillion.

Domestic financing amounts to sh2.829 trillion while external financing consists of project support of sh9.433 trillion and general budget support of sh675.2bn.

Domestic re-financing amounts to sh6.452 trillion and appropriation in aid is sh201.1bn.

In 2019/20, as a  ratio of GDP, the budget deficit is projected at 8.7% compared to 5.8% in 2018/19.

“This deficit, as usual, will be financed largely through external borrowing and to a lesser extent through domestic borrowing.

 Public debt;

We understand that the stock of Government debt rose to sh42.760 trillion as at end-December 2018.

External debt constitutes 66.5% of the total debt and this amounts to sh28.427 trillion.

5:23pm

Some of the tax measures

– The Excise Duty Act was amended to provide for registration of manufacturers, importers and providers of excisable goods and services.

– Income derived from leasing or letting facilities in industrial parks has been exempted from income tax for 10 years from the date of commencement of construction.

– The Stamp Duty Act was amended to provide for a uniform stamp duty.

In addition to VAT exemption on agro-processing, rice mills and agricultural sprayers have also been exempted from VAT.

– Introduction of a 6% withholding rate for VAT.

– To promote investment and industrialisation, import tariffs on products which are locally manufactured have been increased.

Meanwhile, interventions in tax administration to be implemented in 2019/20 include:

– Use of Electronic Fiscal Devices to improve compliance in VAT

– Use of a digital tax stamps solution to avert under-declaration of excise and customs duties

– Enhance rental income tax collection.

– Purchase and deploy scanners at major ports of entry into Uganda

– Expand deployment of the Electronic Cargo Tracking system to eliminate dumping of imports in the Ugandan market.

 

5:15pm

Domestic revenue mobilization

The plan across the next five fiscal years is to review tax policies, involving taxpayers more fully in the tax policy formulation process and also to promote an attractive business environment to potential investors.

Government plans to support investment in human capital, eliminate revenue leakages and enforce tax obligations, among several other interventions.

Domestic revenue projections for the next financial year amount to sh20.449 trillions.

“Madam Speaker, next financial year, URA will collect all Government revenues including Appropriation in Aid (AIA).

 

5:10pm

Interests and payments, security

 

5:04pm

Health sector’s share

 

In the health sector, government plans to improve the functionality of lower level health facilities as well as streamline the health referral system to reduce pressure on super-specialised Mulago National Referral Hospital.

Government also plans to build staff houses and maternity wards in 81 health centres supported by the World Bank Reproductive Maternal Chaild Health Services Improvement Programme.

The health sector has been given sh2.6 trillion.

 

5:04pm

Education’s portion

Sh3.4 trillion has been given to the education sector.

 

5:00pm

Human development – education, sports

 

In terms of skills training, critical infrastructure for technical and vocational training has been built. Currently, 55% of all districts have technical and vocational institutions.

In sports, the construction of the national high altitude centre in Kapchorwa is 68% complete and the Nakivubo Stadium is undegoing reconstruction.

“I congratulate the Uganda Cranes for qualifying to the Africa Cup of Nations for the second time running”.

 

4:57pm

Internet connectivity

In this coming year, the plan is to have the National Backbone Infrastructure for ICT extended to cover all districts.

“Internet costs will be reduced through the implementation of the new national broadband policy,” says Kasaija.

“Madam Speaker, sh146.2bn has been provided next financial year to the ICT sector.”

 

4:50pm

Subsidizing electricity

Total installed electricity generation capacity is now 1,200MW, with the completion of several hydropwer generation projects including Isimba Hydropower dam.

“The Electricity Connection Policy will continue to subsidize the cost of electicity connections,” says the finance minister.

Energy sector gets sh3 trillion.

 

4:44pm

Works and transport share

 

 

4:44pm

5,111km of roads paved

The paved road network now is 5,111 kilometres, says the minister, adding that 97% of the national paved road network and 83% of unpaved roads were reported to be in fair to good condition.

 

4:40pm

Mineral sector

In this coming financial year, some interventions will be undertaken in the mineral sector. 18 priority mineral target areas will be explored for rare earth and metallic minerals.

The licesing rules and regulations will also be reviewed.

 

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4:35pm

Tourism

Among the plans for the tourism sector in this financial year will to upgrade and renovate key tourism infrastructure, including airfields and priority roads to improve accessibility.

Finance has allocated sh193.7bn to the tourism sector.

 

4:31pm

Commercialising agriculture efforts ‘bearing positive outcomes’

Kasaija says that government’s efforts to modernize and commercialise agriculture “are bearing positive outcomes”.

Coffee export volumes in 2018 increased by 6% to 4.5 million bags . Oil palm production in Kalangala also increased.

Meanwhile, government plans to provide sotorage facilities and link farmers to agro-processing facilities to supoort agro-industrialisation.

It also plans to provide irrigation infrastructure both small and large scale.

Sh1.54 trillion has been given to the agriculture sector.

 

 

4:27pm

I have provided sh428.68bn for electification of industrial parks, developmemt of supportive expeor infrastructure in export processing zones and industrial parks and ICT,” says the minister.

 

 

4:23pm

Industrialising the economy

As regards industrialisation, Government has started the establishment of an industrial base. The iron and steel industry now has 24 steel industries and its installed capacity has doubled to 1.7 million tonnes per annum from 886,000 tonners five years ago.

The finance minister speaks of agro-processing factories have been commissined in Teso and Luwero for citrus fruits, dairy in Ankole, vegetable oil in Kalangala and tea in Toro and the Kigezi sub-regions.

 

 

4:20pm

On microfinance

In the coming fiscal year, the Uganda Development Bank (UDB) will be further capitalized.

“I have alloctaed sh103.5bn next financial year for this purpose,” says Kasaija.

To support private companies in raising equaity capital, the Capital Markets Authority will establish a centre to facilitate access to lonf-term domestic and foreign captial on the stock exchange.

The Uganda Microfinance Regulatory Authority is now fully operational “to enhance consumer and investor confidence in the microfinance industry and money-lending business.”

 

 

4:14pm

Priority minerals

For the minerals, oil and gas sector, the minister says the priority minerals to be exploited include iron ore, limestone, phosphates, oil and gas, dimenstion stones, gold and rare earth metals.

 

 

4:11pm

Tourism highest forex earner

The tourism sector has made dramatic progress and currently ranks as the highest foreign exchange earning sector, says the minister.

This year, appropriate legislation will be enacted and vigorously enforced to preserve cultural sites and monumnets and deter illicit trafficking of protected wildlife and antiquities.

World-class skills will be built in hospitality and tourists handling, wildlife conservation, tour and travel management, food and beverage services.

 

4:05pm

Addressing climate change

To tackle to biting issue of climate change, Kasaija says reafforestation and restoration of wetlands must be undertaken as a matter of urgency.

Destruction of wetlands and forest cover “well be penalized through the enforcement of environmental laws and regulations. Local governments must enact and enforce ordinances on tree planting, efficient waste managment and wetland conservation”.

 

4:02pm

Key bottlenecks largely addressed – Kasaija

The finance minister says that the Government has “already successfully laid the foundation” for Uganda’s industrialization.

Key bottlenecks, including inadequate electricity and transportation infrastructure and lack of basic education and health have largely been addressed.

Commercialising agriculture has the greatest potential for increasing household productivity and incomes, says the finance minister. But this should be done while also addressing unemployment in the rural communities.

Kasaija on Microfinance:  I have allocated an additional UGX40 billion to the Microfinance Support Centre for lending at affordable interest rates not exceeding 12% p.a.

Kasaija on special programmes:   for women: Special programmes to enhance access to credit for youth and women will also continue to be implemented (UGX130 billion and UGX32 billion allocated respectively).

 

Financial continues to strengthen- Minister Kasaija :

– Domestic prices remain stable. Average inflation was 3.4%, well within the policy target of 5% per annum.

– The Uganda Shilling has largely been stable against major currencies.

– The financial sector has continued to strengthen. Non-performing loans reduced to 3.4% at the end of December last year, compared to 5.6% the previous year.

– Domestic revenue collection has increased significantly. It is projected at sh16,711bn in 2018/19, of which sh16,181bn is tax and sh530bn is non-tax revenue.

Government spending excluding domestic debt refinancing this financial year is projected to be sh24,297bn, which is equivalent to 22.1% of GDP.

 

Kasaija: Access to affordable finance is an important catalyst for the growth of viable private sector enterprises. However, commercial bank lending rates remain high. This calls for government interventions.

Matia Kasaija: In order to avoid wasting and leakage of the benefits from minerals, oil and gas resources, proceeds of extraction will be invested for both the current and future generations.

 

Services sector registered highest growth rate

The agriculture sector maintained its recovery, sustaining a 3.8% growth rate in 2018/19.

The minister says enforcement of fishing activity helped in the recovery of fish catches and that provision of extension services and control of pests and diseases also boosted harvests in crops such as maize, beans, fruits and vegetables.

The services sector grew at 7.2% last financial year. It was the highest rate of all the sectors.

The industry sector grew at 5.8% this year.

 

3:47pm

The minister says the EAC region is the fastest growing economic bloc in Africa.

“Uganda’s trade with other African countries is increasing, and amounted to 59% of total goods exported in 2018,” he says. Total goods exported to the EAC amounted to $1,469m compared to imports of $911m.

We understand that Uganda’s economy is estimated to have grown by 6.1% in 2018/19. The size of the economy is now sh109 trillion.

 

Kasaija: Unemployment remains a challenge. With 600,000 new entrants in the job market annually, there is need for more jobs.

Kasaija: Income inequality has widened as wealth hasn’t been created faster in rural areas hence the president traversing the country to show people how to create wealth.

Kasaija – Uganda’s economy has recovered and picked momentum, growing at a rate of 6.6% per year over the past three years. Also the Average incomes of Ugandans have increased $825 per person In the Financial year we are about to end, compared to $800 last year.

View image on Twitter3:39

Three major challenges

Minister Kasaija picks out three major development challenges that Uganda is still grappling with. Unemployment, income inequality as well as malnutrition and unhealthy lifestyles.

He says “53% of children under five years are malnourished and hence anaemic, and 29% of them are stunted or wasted”.

Meanwhile, inappropriate feeding is a major cause of a surge in chronic non-communicable diseases.

3:35pm

Substantial strides for Uganda

The minister says that Uganda has made substantial progress towards the goal of a middle income status  as underlined by some examples:

– The economy has recovered and picked momentum. It has grown at over 6% per annum over the last two years.

– Average incomes of Ugandans have increased.

– The quality of Uganda’s labour force has “dramatically improved”. We understand that the proportion of the labour force with tertiary education has increased from 7.5% in 2013 to 13.6% in 2017.

View image on Twitter– Services have increased to 48.7% today from 32% in 1986.

– In terms of export performance, diversification has led to non-traditional cash crops fetching Uganda $2.84bn last financial year.

– Trade with the EAC partners has “significantly improved”, generating a surplus of $557m last year.

– National grid electricity connections have increased to 1.3 million customers.

– Many new factories have been opened. The impact is that Ugandan products in supermarkets has increased from 15% to 45%. Here, the target it to reach 50% by the year 2020.

3:29pm

SERENA – “In accordance with Artical 155(1) of the 1995 Consistution of the Republic of Uganda and Section 13(13) of the Public Finance Management Act 2015, I presented the budget proposals for Financial Year 2019/20 to Parliament on March 28, 2019. I applaud honourable Members of Parliament for their dedication in the reviewing of the proposals and the approval of the budget on May 24, 2019,” he kick-started.

He says that his statement presents the economic and development context under which the new fiscal year budget was prepared and highlight the priority actions that “underpin the allocations that have been appropriated by Parliament”.

Adapted from NewVision