Finance Ministry highlights achievements despite funding challenges

5 December 2024, 10:50 am

By Ronald Ssemagonja

The Minister of State for Finance in charge of General Duties, Hon. Henry Musasizi, informed the media and the country that his ministry has achieved significant success despite challenges posed by limited funding. The minister was delivering the ministry’s performance report during the manifesto presentation session held at the Office of the President in Kampala.

In the current financial year, the ministry organised Local Government Budget Consultative Workshops, which were held for three weeks at regional centers in Lira, Jinja, Mbale, Kampala, and others. The main objectives of these workshops included providing feedback on recommendations made during the last consultations for the FY 2024/25 budget and sharing the government’s strategic direction and Budget Strategy for FY 2025/26.

Key service delivery issues addressed in the FY 2024/25 budget include the timely reversion of unspent balances, financing for the maintenance of district, urban, and community access roads, relocation of district offices where cities have been created, and full provision of ex gratia allowances for councilors. “The ministry is committed to financing government projects to improve revenue collection in the country,” Musasizi stated.

Additionally, the ministry successfully secured land for industrial parks with the assistance of local leaders in Nebbi, Rukungiri, and other districts. “This land will be used for industrial parks, which will help the country earn more revenue,” the minister said.

In partnership with the International Growth Centre, the ministry hosted the 8th High-Level Economic Growth Forum under the theme “Seizing Opportunities for Structural Transformation to Increase Productivity and Resilience.” The forum explored ways Uganda can harness opportunities amidst uncertainties such as reduced capital flows, rising global interest rates, protectionist trade policies, geopolitical tensions, and the long-term risks of climate change. Key recommendations included emphasising specialised wage work over subsistence production, creating an enabling environment for small-scale producers, and leveraging the Parish Development Model (PDM) to extend credit to unbankable individuals, particularly in the agricultural sector.

The ministry also held the National Budget Conference in September 2024, where significant progress was reported. With FY 2025/26 marking the start of the implementation of the Fourth National Development Plan (NDPIII), stakeholders urged the government to allocate sufficient resources to sectors with high economic returns to enhance Uganda’s economy and the general welfare of its citizens.

In conclusion, Hon. Musasizi acknowledged the challenges facing the ministry but emphasised that they are committed to improving service delivery. On the issue of rationalising public expenditure, he noted that President Yoweri Museveni has assented to 19 Bills passed by Parliament to rationalise specific entities, with UGX 26.9 billion allocated to facilitate the process.