Experts urge government to diversify revenue sources, manage debt to minimize fiscal capacity constraints post COVID era.
Drake Nyamugabwa
The COVID-19 pandemic triggered an economic slowdown and Uganda recorded a real GDP of 3.0% in FY2019/20 compared to 6.3% in FY 2017/18. The pace of expansion gradually has started picking up but the difference players in all sector according to ACODE must be functional to realize economic stability post COVID-19 era.
To this tune, ACODE and partners including CSBAG, NBS, and Ministry of Finance, Planning and Economic Planning organized the 12th annual high level policy dialogue on the budget aimed at situating the FY2022/23 budget in Uganda's Economic recovery to discuss economic stability and human capital development.
During the dialogue (picture below) that was held on 17th February 2022 at Serena hotel, the State Minister, Ministry Finance, Planning and Economic Planning Henry Musasizi in an interview said that with the new programmes that government has introduce including the Parish Development Model, Emyooga among others, there is doubt that the country will realize financial inclusion of every one up o community levels.
He said that government recapitalized Uganda Development Bank to contribute to annual support for nurturing business growth.
“The system will determine success or failure of the parish model, if we have focused on the community level to implement it, it will succeed. After its launch 0n 26th Feb 2022, many activities will follow starting with July next financial year” he said
Following an increase in the external borrowing from IMF to a tune of 3.9% of Uganda’s GDP, The Executive Director, ACODE, Dr. Arthur Bainomugisha said that, there is need to have interventions towards debt management and servicing of debt that attract high interest rates.
He said that there is need to balance tax incentives with domestic revenue in the effort to recover from the effects of the pandemic.
“We must remove the dependency syndrome of our people. Need to manage debt of the dormant loan that attract interest. Need to reduce appetite for borrowing, put in good use the borrowed money and fight corruption, and transparency of released money” he said.
The Executive Director, CSBAG Julius Mukunda (in baove picture) said that “One of the challenges we are facing is the lack of a legal framework on how we manage projects. We need to know when a project is starting and how it starts" We can do Better on this”
Elizabeth Mutumba, Senior Education Officer Ministry of Education and sports said that the ministry has put in place measures to support learning; change of the curriculum to omit redundancies, use of technology & e-learning
She added that the country has even labeled education as a key component for driving for social growth, economic development, and transformation since becoming politically independent, as well as helping to achieve a more united nation and democratic reforms.
