The Permanent Secretary in the Ministry of Finance and Secretary to the Treasury, Mr Ramathan Ggoobi, has noted that the 2024/25 national budget is huge because Uganda’s economy is getting bigger.
Speaking during a post-budget dialogue at Kampala Serena Hotel on Friday, Mr Ggoobi said the tax paid by Ugandans (projected at Shs32 trillion next FY) is the primary source of financing the budget, in addition to budget support, domestic borrowing, petroleum fund, local government revenue and projects.
“Every year, we make the biggest budget in Uganda’s history. The reason for that is because Uganda’s economy is getting bigger. This budget is not only big, but it is also a good budget. It is a big, good budget,” he said.
Ggoobi said the above sources account for about Shs52 trillion, adding that the balance of about Shs20 trillion on the Shs72 trillion budget is not money to spend.
He said this includes the Shs7.8 trillion debt the government owes to Bank of Uganda to be settled through issuance of bonds to mop up excess liquidity in the market and Shs12 trillion for debt refinancing of maturing debt (debt rollover) which will only require payment of interest.
“You (Ugandans) are doing very well. I do not know why you think you are the worst. You are doing very well right from the macros and debt levels and among the EAC, only Tanzania has better numbers,” Ggoobi said.
He reiterated the priorities of the government for next FY, which are investing in the people of Uganda through health, education, water, sanitation and hygiene (Shs10.2 trillion), peace and security (Shs9.1 trillion); maintenance of infrastructure and construction of few critical roads and standard gauge railway (Shs5 trillion).
Others are investing in wealth creation initiatives (commercial agriculture, value addition, capitalizing UDB, PDM, Emyooga, Agriculture credit facility (ACF) etc (Shs2.64 trillion); transmitting and improving quality of electricity (Shs982 billion).
“We are very mindful and alive to the rampant misuse of resources in government by a few accounting officers and leaders. We are working and progressing well in strengthening our public financing management architecture,” Ggoobi said
“We have cut the purchase of new cars by the government. The swarm of cars you see on the roads is old stock. People were changing cars for fashion; ‘This one was for my colleague who left…’ we have stopped all of that,” he added.
PS Ggoobi urged the private sector including banks to support and benefit from key budget themes including but not limited to agro industrialisation, mineral development, tourism eco system among others.
