The Ministry of Finance, Planning and Economic Development has tasked Uganda Revenue Authority (URA) to collect domestic revenue to a tune of Shs29.95Trn in order to finance the 2024/25 national budget.
“In FY 2024/25, domestic revenues are projected to amount to Ushs29.957Trn (13.6% of GDP), from an estimate of Shs29.672Trn. This translates into nominal growth in revenues of Shs285.6 billion. 93% of domestic revenues will be obtained from tax revenues which are projected to reach Shs27.784Trn, while the remainder will be obtained from Non-Tax Revenue to Shs2.174Trn. This rise is attributed to gains on account of higher economic growth, and projected revenue gains due to implementation of the Domestic Revenue Mobilisation Strategy (DRMS),” Ministry of Finance said in its budget framework paper for FY 2024/25.
The 2024/25 National Budget Framework Paper was tabled by Minister of State for Finance, Henry Musasizi before Parliament for scrutiny by MPs last week.
The Ministry of Finance also indicated that Government expenditure and net lending in FY 2024/25 are projected to amount to Shs38.968Trn, which is less than Shs39.948Trn in the Approved Budget of FY 2023/24.
Government also gave a highlight of Uganda’s economic performance in FY 2022/23, noting that tourism inflows remained resilient, recording an increase of 9 percent from US$ 978.35 million in FY2021/22 to US$1,066.41 million.
“This growth is partly attributed to increased confidence of travellers as the world recovers from the COVID-19 global shock. Although this is a remarkable performance, the Government is putting interventions in place to increase tourism receipts to US$ 5 billion per annum by 2028,” noted Minister Musasizi.
The Ministry also revealed that remittances to Uganda increased to US$1,431.23 million in FY 2022/23, higher than the value of US$1,133.94 million registered in FY 2021/22.
Government also indicated that Uganda continued to register growth in Foreign Direct Investment (FDI) inflows, having increased by 68.3 percent in FY 2022/23, largely hinged on the developments in the oil sector as Uganda prepares for its first oil. FDI inflows rose from US$1,688.56 million in FY 2021/22 to US$2,842.65 million in FY 2022/23
