Today the Finance Minister Matia Kasaija is expected to deliver a 45.5 trillion Shillings national budget for the financial year 2020/2021 at parliament before the president digitally addresses the MPs and the nation at large
The budget reading is expected to commence on 11th June 2020 at 2 pm and will be followed by the President’s speech.
72.5 percent of the budget will be domestically funded while 27.5 will be externally funded.
Kasaija will announce the biggest allocations to works and transport-5.8 TRILLION Shillings accounting for 12.5 percent, security4.5 TRILLION Shillings, but much of this money is classified, interest payments 4 TRILLION, Education3.6 TRILLION, and Health2.8 TRILLION, ICT 162 billion, trade-171 billion, Tourism198 billion, in that order.
The Uganda revenue authority –URA will be expected to collect 21.7 trillion to finance the budget.
The government will borrow up to 11 trillion Shillings from external sources for the 2020/21 budget. It expects grants of 1.7 trillion Shillings.
Being a COVID-19 budget it is largely expected to support businesses in the recovery from the COVID crisis, disaster-prone areas, and then bear in mind of the 2021 general election.
The government will focus on agriculture as the backbone and a flexible sector that will fasten the country’s growth next financial year.
Therefore, Kasaija will also announce a wide range cut in taxes on most agriculture inputs, cooking gas, and processed milk.
Margaret Kakande, the head of the Budget Monitoring Unit (BMAU) at the Ministry of Finance, said the government has decided to limit the focus on sectors like tourism and travel, because of the COVID crisis that makes it impossible it now attracts any visitors.
