The parliamentary committee on the national economy has implored key institutions involved in economic management to find means of reducing the country’s borrowing.
According to a report by the committee chaired by Nakaseke North County legislator Syda Bbumba Namirembe, the institutions like Bank of Uganda and the Ministry of Finance and other stakeholders should hold a conference focusing on building a resilient integrated and self-sustaining economy.
The committee also recommended the borrowing of Shs736 billion from the domestic market to finance the budget.
‘The proposed funds will be used to finance the on-going infrastructure projects whose certificates will fall due this financial year, statutory obligations such as wages and interest payment,’ the report reads in part.
The committee further advised government to increase sources of tax revenue through improvement of tax administration, widening the tax base and providing an environment that is conducive for growth of private enterprises.
Last year government approved a Shs 29.008 trillion budget for financial Year 2017/8 of which the government is expected to contribute Shs 21.175 trillion. Other sources include external financing of Shs7.075 trillion and Appropriation in Aid of Shs0 .757 trillion.
The report indicates that the country has registered shortfall in revenue collection of Shs 167 billion in this financial due to lower import, aggregate demand and tax exemption on husked rice.