Government Lists 12 Priority Areas in New Five year Term

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BANKERS REPORTER

The government has listed 12 key priority areas that it will focus on ahead of the new five year term.

These include defence and security, railways, electricity, health, education, salary enhancement for scientists and judicial officers, wealth creation, water for production and domestic consumption, as well as environmental protection.

The Finance Ministry also issued the 2021/2022 second budget circular, projecting that the overall budget will be sh40.91 trillion. Sh3.65 trillion will be externally funded.

“The overall resource envelop for the current financial year is projected at sh40.91trillion. Of this, Government resources amount to sh37.26 trillion and external resources amount to sh3.65 trillion,” Patrick Ocailap, the deputy secretary to the treasury, said in the circular.

He noted that the budget is “highly constrained.” Recently, the Bank of Uganda confirmed a cash crisis in government worsened by revenue shortfalls in the first half of the current financial year.

As a result of constrained fiscal operations of government, BoU’s Monetary Policy report points to slow execution of planned infrastructural projects.

Direct taxes underperformed largely due to shortfalls of sh168.5 billion and sh108.5 billion in PAYE and corporate tax, respectively.

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Ocailap said compensation for Karamoja, Acholi, Lango, Teso, Luwero and Metu, land reforms in Buganda, Kibaale and recovery packages, as well as agro-industrialisation, are the other key strategic areas.

According to the circular, the budget strategy for the next financial year will also be centred on four broad areas — accelerating the pace of industrialisation, building an integrated and self-sustaining economy, strengthening the private sector and promoting inclusive growth through wealth creation funds.

“The financial year 2021/2022 budget is anchored on the National Development Plan III budget strategy approved in the national budget framework paper for the financial year 2021/2022, the National Resistance Movement (NRM) manifesto 2021-2026 and the 12 strategic policy intervention areas issued by President Yoweri Museveni,” Ocailap said.

The circular also notes that specific interventions to sustain the economic recovery are needed, especially the expansion of the economic base and development of the oil and gas sector to spur growth.

Ocailap has also directed all accounting officers to submit budget performance contracts, work plans, as well as annual and quarterly reports by June 15.

“The budget is highly constrained and, as such, I urge all accounting officers to ensure that they plan and budget within the available resources issued for their respective votes. Ensure you finalise the key budget documents for submission to this ministry,” he said.


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