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The Ugandan government reveals comprehensive strategies for financing the Sh53 trillion national budget in the 2024/2025 fiscal year. Prioritizing service delivery and citizen livelihood improvement, the plan involves sourcing resources domestically and externally, utilizing tax revenue, loans, grants, and exploring innovative financing avenues.

The Ugandan government has disclosed key strategies for financing the upcoming Sh53 trillion national budget for the 2024/2025 financial year. With a focus on improving service delivery and enhancing the livelihood of citizens, the government aims to obtain resources from both domestic and external sources.

Domestic resources will include tax and non-tax revenue, along with borrowing from the domestic market. External resources will comprise budget and project support grants and loans. A central strategy involves controlling borrowing to reduce debt servicing costs, thereby redirecting saved resources toward socio-economic transformation initiatives.

To enhance fiscal consolidation, the government plans to improve revenue collection, repurpose the budget for greater efficiency, and implement a public investment financing strategy. This includes exploring sustainable financing sources such as public-private partnerships, private equity funds, capital markets, and climate financing.

The National Budget Framework Paper for the 2024/2025 financial year, presented to Parliament, outlines a total budget of Sh53 trillion. This comprises various sources, including domestic revenues (Sh29.9 trillion), budget support (Sh28.94 billion), domestic borrowing (Sh4.1 trillion), external project support (Sh8.8 trillion), and others.

Efficiency in project execution and public investments is a key focus, aiming for improved implementation of the budget. The government aims to keep current expenditures at an average of 7.3% of the gross domestic product (GDP) over the medium term.

The budget framework also addresses concerns about the country’s rising debt. The government plans to bring down public debt to sustainable levels by controlling non-concessional borrowing through effective implementation of the medium-term debt reduction strategy.

While projecting an increase in domestic revenue to Sh29.9 trillion for the 2024/2025 financial year, the government emphasizes implementing the Domestic Revenue Mobilization Strategy (DRMs) and leveraging higher economic growth for revenue gains.

To limit supplementary budget requests, the government’s financing strategies include closing down ineffective projects and attracting more funding. Critics, such as Julius Mukunda from the Civil Society Budget Advocacy Group (CSBAG), highlight the need for clarity in achieving the Sh29 trillion revenue target and emphasize closing unproductive projects.

Government officials believe that the strategies, coupled with incentives and increased foreign direct investment, will contribute to economic growth. The focus of the budget theme, “Full Monetization of the Ugandan Economy,” aligns with initiatives like the Parish Development Model, commercialization of agriculture, and development of key sectors.

The goal is to accelerate economic growth, reduce poverty levels, and build an independent, integrated, and self-sustaining economy. Prioritizing sectors like health, education, and water, the government aims to foster improved human capital development.