In preparation for the 2024/2025 fiscal year, Uganda is directing its budget towards key sectors, including industry, services, and agriculture. The plan aligns with the National Development Plan 3, with the primary objective of expanding opportunities and fostering economic growth.
The budget for the current financial year (2022/2023) is 48.13 trillion shillings. Preliminary figures from the Ministry of Finance indicate that the proposed budget for 2024/2025 will exceed this, reaching 52.722 trillion shillings.
Ishmael Magona, the Acting Director of Budget at the Ministry of Finance, highlights that these figures are supported by various factors, including domestic revenues, budget support, domestic financing, project support, domestic refinancing, and local revenue for local government.
Recognizing the urgent need for youth employment and development, the Ministry aims to address unemployment through job creation. The overarching goal of this budget is to achieve a minimum of 7% economic growth by shifting from raw-material-based industries to a manufacturing and knowledge-based economy. Additionally, the plan intends to improve the business environment to enhance competitiveness.
However, the budget strategy has generated mixed reactions. State Minister for Trade, Harriet Ntabazi, expressed concerns regarding the absence of trade-related budget allocations, especially given Uganda’s trade deficit. She questions the next steps after production and value addition.
The successful execution of this budget plan necessitates addressing potential risks such as inflation, exchange rate depreciation, and the global and regional demand for petroleum products.
