Henry Musasizi, State for Finance (General Duties)
Uganda Revenue Authority (URA) is expected to collect revenue to a tune of Shs25.516Trn in 2022/23 budget. URA’s revenue collection target is Shs22 Trillion target in 2021/22.
This was revealed by the Minister of State for Finance (General Duties), Henry Musasizi while tabling the National Budget Framework Paper for 2022/2023.
Out of the Shs25.516Trn, Shs23.755Trn is projected to be raised from tax sources and Shs1.761Trn from Non-tax revenue sources.
According to the budget framework paper, Government anticipates to spend Shs32.757 trillion in the FY 2022/23, down from Shs32.397Trn Government had projected to spend in 2021/2022.
“The reduction in expenditure as a percentage of GDP is in line with the need to undertake fiscal consolidation to ensure fiscal and debt sustainability,” the Minister said.
Government is seeking to look abroad to finance its budget, with a total of Shs6.868Trn projected as external financing in FY 2022/23 and of this, Shs4.770Trn is in form of project loans.
Government will also be hitting the domestic market to borrow about Shs2.836Trn.
from local commercial banks.
The Ministry of Finance also revealed plans to set aside Shs2.463Trn for external debt repayment and this has been prompted by the increase in non-concessional loans government has been acquiring lately, typically characterised by shorter grace periods, with some loans nearing their date of maturity.
Additionally, Uganda will pay Shs5.088Trn in FY 2022/23 in interest payment loans and of this, Shs4.059Trn is projected to cover domestic interest payments while Shs1.029Trn will cater for foreign interest payments and commitment fees.