Implement accounting laws to raise revenue - accountants
Finance Minister Matia Kasaija presents the National Budget at Kampala Serena Hotel last week. Photo by Faiswal Kasirye
What you need to know:
Revenue. Government is expected to raise Shs11.3 trillion for the Budget.
KAMPALA. The Institute of Certified Public Accountants of Uganda (ICPAU) has asked government to enforce all accountant-related laws to mobilise domestic revenue.
A number of accounting laws have remained on paper, which ICPAU says is affecting revenue mobilisation.
Speaking during the post-budget meeting organised by Certified Public Accountants at Imperial Royal Hotel in Kampala on Friday, the chief executive officer of Institute of Certified Public Accountants of Uganda, Mr Derrick Nkajja, said few reforms have been implemented in Uganda are related to accounting.
“The Public Management Act has been passed and the Accountants Act 2013 has also been passed. All the sections of these laws have to be operationalised to embrace sound accountability in both public and private institutions,” he said.
Government is moving towards self-financing its expenditure and as such in 2015/16 budget where domestic revenue is expected to increase to Shs11.333 trillion, up from Shs9.8 trillion. The Ministry of finance says this will be achieved through a number of changes to the structure and coverage of taxes, and efficient improvements in tax collection and compliance.
The finance minister, Mr Matai Kasaija, further explained in the budget that the main thrust of tax policy is to progressively enhance revenue mobilisation to fully finance the budget. This will be accomplished while ensuring that taxation is not a hindrance to private sector investment, savings, production and social welfare.
Mr Nkajja said in every effort that has been laid down by government concerning revenue mobilization, accounting is involved and as such professional accounting should be embraced in the formal and informal sector.
“The formal sector should be employing Certified Public Accountants and the informal sector should be employing Accounting Technicians because you realize this current budget is for everyone who is working,” he said.
Every arm of government has accounting officers charged with accounting for the money they receive and implementing government projects funded through the national budget. Government’s expenditure on both capital and recurrent continues to grow. But most investment projects remain on paper because of lack of work plans, or failure by accounting officers to implement the projects.
