The government has tabled the national budget framework paper totaling Shs49.9 trillion for the 2023/2024 financial year. The document was tabled during a plenary sitting on Friday, by the Minister of Finance Hon. Matia Kasaija. In the coming financial year, the government projects to borrow up to Shs13tn.
According to the Public Finance Management Act, the government has to table the budget framework before parliament by 31st December while parliament has up to 1st of February to adopt it. Finance Minister Matia Kasaija was able to comply with timelines by tabling the Shs49.9 trillion budget framework papers before parliament today.
The preliminary resource envelope for the financial year 2023/2024 has increased by Shs 1.8tn compared to Shs48.1 trillion for the 2022/2023 financial year. Peace and security under the governance and security and Roads Maintenance of both tarmac and Marram under the integrated transport Program, plus energy are taking priority of strategic intervention areas which will take priority next financial year
The minister of state for finance in charge of general duties Henry Musasizi noted that they project an increment of tax collections in the next financial year Shs.3.2 trillion amounting to Shs28.8tn compared to Shs25.5tn of the current financial year.
The increase in domestic revenue mobilization is attributed to the projected growth in the economy which is expected to rise from 3.7% in the current financial year to a 5.3% growth rate. Other avenues of more revenue include enhancing tax administration.
Musasizi revealed that they don’t plan to introduce new taxes in the next financial year but to work on the efficiency of tax administration mechanisms.
The government projects to borrow up to Shs.13 trillion but this time the focus has been put on external borrowing which does not crowd out the private sector.
However, some legislators claim the budget framework paper has presented an unrealistic resource envelope, wondering how the government is going to mobilize 49.9 trillion amidst the economy that is struggling to recover from the effects of covid-19.
According to the Public Finance Management Act, the Government should table the budget framework paper before Parliament by 31 December 2022, and by 01 February 2023, the House should have approved the budget framework paper.
The Leader of Opposition Hon. Mathias Mpuuga tasked the Minister equally to provide a hard copy of the framework, stating that the last time the Minister presented a framework with massive changes.
Deputy Speaker Thomas Tayebwa who presided over the House referred the framework paper to the committee on Budget and other relevant sectoral committees for consideration.
