Government’s tax revenues in September 2018 totaled just over Shs1.2 trillion, registering, a shortfall of Shs9.9 billion and thereby offsetting the surplus recorded in non-tax revenues, according to the Performance of the Economy Report published by the Ministry of Finance Planning and Economic Development (MFPED).

According to the report, tax revenue collections were affected by international trade taxes whose collections were Shs51.6 billion lower than the projected target of Shs578.5 billion for the month of September. “This was due to lower than projected taxable imports during the period that affected both import duty and VAT on imports,” the report reads in part.

The report which tracks the performance of the Ugandan economy monthly, notes that shortfalls of Shs37.7 billion and Shs 21.7 billion were registered in VAT on imports and import duty respectively.

Meanwhile the report indicates that direct and indirect taxes amounted to Shs64.6 billion and Shs335.1 billion, performing above their respective targets by 2 per cent and 10 per cent respectively. “The performance in direct taxes mainly resulted from surpluses received in Pay As You Earn (PAYE) and earnings from withholding tax on treasury bills while indirect taxes benefited from surpluses on the mobile money levy and phone talk time,” says the report.

However, revenue and grants in September 2018 amounted to about Shs1.3 trillion performing at 94.3 per cent against the target. “This performance was mainly attributed to lower than anticipated grants received which performed at only 48.5 per cent against the target of Shs143.7 billion,” the report says.

Government Expenditure
Preliminary data indicates that Government expenditure during the month totaled to about Shs1.4 trillion, which translates into a performance of 65.0 per cent against the programmed expenditure, the report says. This, the report says, mainly resulted from lower than planned external project disbursements.

Current expenditures in the month of September 2018 were Shs906.1 billion against the program of about Shs1.1 trillion. “This mainly resulted from frontloading of the quarter one expenditure in the first two months of the Quarter coupled with the downward revision of domestic interest payable in the period,” the report says.

Meanwhile development expenditures in the month performed at only 43 per cent of the program or about Shs1 trillion. “This was on account of lower than anticipated external project disbursements and absorption of monies in the external project accounts,” the report says.

Backwards, the total budget value is Shs32.7 trillion for the current financial year (FY) which is 13 per cent up on FY17/18. Domestic revenue will fund 64 percent of the total outgoings, down from 67 per cent budgeted in the prior year. The planned deficit is Shs7, 428 billion (6.6 percent of projected GDP), which will be funded by increased domestic borrowing of Shs1, 785 billion along with external borrowing.

The Uganda Revenue Authority (URA), which is a national tax collector, has been given a tax collection target of Shs16.4 trillion in the current financial year.

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The electoral commission has resolved to renew its partnership with citizen’s coalition for electoral democracy in Uganda (CCEDU) months after the latter was suspended from observing any elections.

CCEDU was on July 4th 2018 suspended from conducting election-related activities over allegations that the organisation has been partisan in the way it has been conducting its activities, breaching electoral observation guidelines for benefits of stake holder in the electoral process.
EC, chairman Justice Simon Byabakama said, the commission and the nation wants credible, honest and impartial partners to access electoral process and make pertinent recommendations, it is upon that background that EC suspends your relationship until further notice,” the statement said.
The suspension followed CCEDU position of opposing voting by lining up behind candidates, “therefore we will not observer LC1 elections,” they wrote.

However, in a meeting held at Electoral Commission headquarters, the two bodies agreed to form a joint committee comprising of three officials from each organisation to expeditiously harmonize the parameters of their working relationship and communication strategy while engaging in election related activities.

The committees will be mandated with presenting mutually binding positions on both sides and pave way for lifting the suspension of CCEDU.

According to Crispin Kaheru, the chairperson of CCEDU, the allegations are baseless since they have done reports before, “so it’s not true that we are just on the other side,” he added.
“While performing our election observation duties, we have to work with the EC because it is them that are directly mandated to manage elections, that is one fact that was clear in the meeting we had,” he said.

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Uganda and the European Union (EU) have reconfirmed their close partnership in a Political Dialogue meeting held on October 24, 2018, hosted by President Yoweri Museveni at State House in Entebbe.

The meeting was held in accordance with Article 8 of the Cotonou Partnership Agreement and forms part of regular political dialogue between Uganda and the EU on global, regional and national issues of mutual interest.

The discussion was held in an open, cordial and constructive atmosphere. The EU delegation was led by the European Union Ambassador to Uganda, H.E. Attilio Pacifici, who was joined by the Heads of Mission of Austria, Belgium, the Czech Republic, Denmark, France, Germany, Ireland, Italy, the Netherlands, Poland, Sweden, and the United Kingdom.

Also in attendance in the meeting above were the Prime Minister, Dr. Ruhakana Rugunda, Foreign Affairs Minister Sam Kutesa, Minister of Finance, Matia Kasaija the Minister for Security, Attorney General and Secretary General of the National Resistance Movement, Justine Lumumba, as well as other senior government officials.

The topics for the political dialogue ranged from business climate, trade and investment to matters of rule of law as well as regional issues, with the EU thanking Uganda for its positive role in promoting regional peace and security. The EU also expressed its gratitude to Museveni and his ministers for; “regularly being available for a constructive political dialogue.”

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