Finance minister Matia Kasaija

Tax revenue major source of funding for Shs40 trillion Budget

The Shs40 trillion national budget for 2019/20 financial year was yesterday read in Kampala with most sectors registering an increase in funding.

Speaking prior to the budget reading, Morrison Rwakakamba, an economist and board member Uganda Investment Authority, says this money will mainly go into mitigating climate change effects for example into irrigation to ensure production throughout the year.

Tourism minister Kamuntu noted that Tourism is becoming a transformative force to changing the country into a middle income economy

On Murchison falls, “It is just one of the options that may be considered for generation of power. There are so many other options.”

While reading the national budget, Finance minister Matia Kasaija said the economic growth strategy includes expanding the industrial base of the economy and exploiting Uganda’s natural endowment resources.

He noted that Uganda’s economy is growing at more than 6% per annum for the last two years.

Allocation by sector

1) Debt repayment Shs10.6 trillion

2) Works and Transport Shs6.4 trillion

3) Defence and Security Shs3.6 trillion

4) Education Shs3.2 trillion

5) Energy Shs2.9 trillion

6) Local Governments Shs2.8 trillion

7) Health Shs2.5 trillion

8) Accountability Shs1.9 trillion

9) Justice, Law and Order Sector Shs1.6 trillion

10) Agriculture 1 trillion

11) Water and Environment Shs1 trillion

12) Public Administration Shs908 billion

13) Public Sector Management Shs789 billion

14) Parliament Shs688 billion

15) Social Development Shs218 billion

16) Lands, Housing and Urban Development Shs193 billion

17) Tourism Shs175 billion

18) Trade and Industry Shs171 billion

19) Science and Technology Shs159 billion

20) ICT Shs123 billion

 Source of revenue to fund the budget: The budget is expected to be major funded by domestically collected revenue. These are mainly taxes including Pay As You Earn (PAYE), OTT tax, corporate tax, mobile money tax, bank charges, traffic fines, taxes on exports, fuel taxes, among others.

This, minister Kasaija said will be done by enhancing tax collection by Uganda Revenue Authority, the agency charging with mobilising tax revenue for the government.