PS Ggoobi outlines opportunities for private sector in 2024/25 budget

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PS Ggoobi outlines opportunities for private sector  in 2024/25 budget
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The Finance Ministry Permanent Secretary Ramathan Ggoobi has outlined  opportunities for the private sector in the shs 72 trillion Budget for the financial year 2024/25.

This, he said while delivering a keynote speech during the 2024 post budget conference  organised by Absa Bank Uganda in collaboration with Deloitte at Kampala Serena Hotel.

“In the next financial year, we have allocated funds for wealth creation initiatives commercial

agriculture, and value addition; the Parish Development Model brings more people into the

money economy. We have capitalized UDB to provide patient, low-cost capital to support

enterprises. There’s money Emyooga, Agriculture credit facility (ACF), etc (shs 2.64

trillion),” he stated.

“We have allocated money to skilling the youth and support to small-scale businesses; we are working with the Private Sector Foundation of Uganda to ensure that women-owned businesses mature into formalisation.”

He said the private sector including banks need to align to support and benefit from key

budget themes including  agro industrialisation, mineral development, and

tourism ecosystem among others.

On budget priorities for Financial Year 2024/24, Ggoobi pointed at investing in the people of

Uganda through education, health, water, and sanitation with a budgetary allocation of shs

10.2 trillion, peace and security (shs9.1trillion), maintenance of infrastructure (shs

5trillion) among others.

The Absa Bank Uganda Managing Director Mumba Kalifungwa said the Financial Year

2024/25 National Budget represents a crucial milestone in Uganda's economic development,

setting the tone for the fiscal policy and outlining the government's  revenue and expenditure

priorities for the coming year.

“I would like to commend the government for its commitment to driving economic growth

and fostering an environment that supports sustainable development. The 2024/25 National

Budget has outlined several key areas that we believe will significantly contribute to our

nation's progress," Mumba said.

“Our economy has remained resilient and is projected to grow at 6% albeit a

slowdown in quarter-on-quarter growth. From a global perspective, uncertainty remains on

the impact of geopolitics, international commodity prices, weaker global growth, global

inflation and monetary policy responses on our economy.”

Allan Ssenyondwa, the Policy and Advocacy Manager at Uganda Manufacturers Association

(UMA) said that although government’s priorities in the next financial year are good,  government needs to move from the macro level to the micro level.

“The manufacturing sector is producing at 54%, how about if we shift the level of production

to 80%? People forget to tell you that some manufacturers are exiting the Ugandan market.

What we have to do is to ensure that we have an inclusive economy.”

Revenue sources

Ggoobi said the number one major source of revenues to finance the financial year 2024/25

budget is domestic revenue (both tax and non-tax) at shs 32 trillion, budget

support at shs1.4 trillion, domestic borrowing (shs9 trillion), petroleum funds and

Local Government revenues (shs 294billion).

Sarah Chelangat the Commissioner - Domestic Taxes at Uganda Revenue Authority

explained that for the last three years, government hasn’t introduced new taxes but rather

focused on tax administration, which she said will continue in the financial year 2024/24.

“As we look into the next financial year, our focus is on strengthening tax administration;

technologies like EFRIS will ensure automated returns that summarize sales, and net VAT

payable to government. This is good for the country.”

She noted that through digitalisation, URA will use third-party data to get advisories

for the follow-up to taxpayers.

Other focus sources of revenues include rental tax, local excise duty, and VAT.

“Widening tax base is what we are doing, we want this fair share of tax to government, we

are opening new stations in different areas of countrywide such as Kisoro, Ntungamo among

others."

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