Deputy Bank of Uganda Governor, Prof Nuwagaba
The Bank of Uganda Deputy Governor, Augustus Nuwagaba, has on the Accountants to support his effort to move away from using the gross domestic product (GDP) indicators to gauge the performance of the economy.
He was speaking at the 3rd Public Finance Management Conference organised by the Institute of Certified Public Accountants of Uganda (ICPAU), under the theme: “Public Finance Management Systems for Sustainable Service Delivery.”
According to Nuwagaba, GDP does not show the real picture of an economy, because expansion of the economy does not necessarily mean people’s lives are improving.
Giving the example of Uganda, Nuwagaba said that currently most of the GDP is coming from the services sector, which contributes about 44 percent, compared to industry’s 19 percent and the 24 percent from agriculture.
This structure, he said, shows that the economic growth is not creating jobs and helping people to develop, because agriculture, which employs most Ugandans (75 percent), only contributes a quarter of GDP.
Regarding sustainability, he further cautioned that growth without transformation was just motion, and that national accounting should reflect the depletion of forests or the damage of pollution.
“Growth is not progress if it ignores nature’s toll. Without counting forest loss or pollution’s harm, our economic stats are mere mirages,” says Prof. Nuwagaba, adding: “True transformation tracks what we take from Earth, not just what we make.”
Fight Against Corruption
He also challenged the accountancy fraternity to lead the fight against corruption, saying most graft cases are related to or silenced by accountants.
Prof Nuwagaba says, unfortunately, that while corruption is traditionally a result of many people fighting for limited resources, there is also the problem of poor upbringing.
Nuwagaba stressed the effects of theft of public funds on social services and how it mainly affects the poor and more vulnerable, who need public services more.
The Bank of Uganda DG, however, hailed the Institute for leading the transformation of the accounting profession, urging them to do “work that Uganda can be proud of”.
Public Financial Management (PFM) is a set of laws, rules, systems and processes used by governments to mobilise revenue, allocate public funds, undertake public spending, account for funds and audit results.
In Uganda, the Public Finance Management Act 2015 (as amended) sets the legal framework for financial management practices in the country by defining the guidelines for budget preparation, expenditure control, accounting & reporting, and auditing, among others.
ICPAU Council President, Josephine Okui Ossiya, urged the Accountants to continuously appraise themselves with the global developments around public sector standards.
In the statement delivered for her by Council Vice President Ronald Mutumba, Ossiya said PFM would help in ensuring good and effective service delivery across all services.
Whether it’s better roads, hospitals, or schools, effective Public Finance Management touches every Ugandan life,” said Ossiya.
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