In September 2022, Uganda government collected revenues and grants amounted to Shs2,056.49 billion against a target of Shs1,922.98 billion, resulting into a surplus of Shs133.50 billion, says the Ministry of Finance’s Performance of the economy macroeconomic policy department monthly report for September 2022.
“This was attributed to a surplus in domestic revenue and higher than expected project support grants during the month,” the report says.
It adds that domestic revenue collection for the month of September 2022 amounted to Shs1,821.81 billion registering a surplus of Shs24.59 billion mainly on account of surplus collections under Tax revenue during the month.
This performance was largely due to higher collections for income and consumption taxes during the month.
“Of the total tax collections during the month, Shs566.98 billion was direct tax while Shs431.05 billion was indirect tax collections. Direct tax collections posted a surplus of Shs38.53 billion against the monthly target as collections from casino tax, corporate tax, presumptive tax, PAYE and rental income registered surpluses during the month,” the report says.
It adds that indirect domestic taxes performed at 108% of the target for September 2022 registering a surplus of Shs31.87 billion as collections from Value Added Tax (VAT) and Excise Duty on goods such as internet data, beer and spirits among others surpassed their targets for the month. This was partly attributed to efficiency gains in tax administration and increase in the value of goods that attract VAT during the month.
On the other hand, the report says, taxes on international trade transactions performed at 96% percent, registering a shortfall of Shs32.5 billion against the target during the month.
“This was mainly on account of lower than projected collections for petroleum duty during the month,” the report says.
Preliminary data indicates that overall government expenditure in September 2022 amounted to Shs2,032.56 billion, representing an 83.9% performance rate against the planned target of Shs2,422.88 billion for the month.
“This performance was mainly driven by lower than anticipated expenditure under both development and recurrent expenditure during the month,” the report says.
Recurrent expenditure in September 2022 amounted to Shs1,506.77 billion performing at 92.4% against the program target while domestic development expenditure amounted to Shs135.65 billion, translating into an 33.6% against the Shs403.67 billion target for the month.
This follows government’s decision to reduce expenditure as a way of harmonizing with monetary policy in the effort to contain inflation.