Wednesday June 8 2011

LIVE UPDATES: Maria Kiwanuka reads 2011-2012 Uganda Budget

Former Minister of Finance Minister Syda Bumba hands over to her successor Maria Kiwanuka earlier this morning.

Former Minister of Finance Minister Syda Bumba hands over to her successor Maria Kiwanuka earlier this morning. Photo by Nelson Wesonga. 

16:16 EAT: "Addressing constraints in transport, energy and health and education and improving service delivery, will accord Ugandans a better quality of life. I commend this budget to the people of Uganda and especially the youth, who are our beacon of hope for the future." Maria Kiwanuka ends her speech and Speaker of Parliament Rebecca Kadaga invites President Museveni to make closing remarks as the speech was made on his behalf. He accepts and in first remarks notes that he is glad Leader of Opposition in parliament Nandala Mafabi has decided to remain in the house this time. Jokes that the day before they had been unable to handle his stamina.

16:10 EAT: "Madam Speaker, to provide relief to households from the burden of increased kerosene prices, I propose to repeal the excise duty on kerosene. This will lead to a revenue loss of about Shs 12 billion."

16:00 EAT: "Madam Speaker, I propose to reduce the excise duty on sugar by 50 percent given that sugar is a key welfare item in many households in Uganda. This will lead to revenue loss of about Shs 8.5 billion. The details are contained in the Excise Tariff (Amendment) Bill 2011."

15:50 EAT: "Madam Speaker, I propose to remove the stamp duty applicable on securities given in procuring small loans in order to lessen the burden of  borrowing to small income earners whose threshold shall not exceed 2 million shillings. Details will be contained in the stamp duty (Amendment) Bill, 2011"

15:45 EAT: Kiwanuka proposes to, "To remove VAT on ambulances to facilitate the transportation of patients to hospitals and other health facilities. The details are contained in the Value Added Tax (Amendment) Bill, 2011."

15:30 EAT: On Access to Affordable Financial Services the Minister says that to address the problem of limited access to financial services, Government is undertaking reforms that will enhance increased leasing, and also undertake pension sector reforms to help increase the savings rate and provide long term investment funds, as well as the development of the mortgage industry.  

15:28 EAT: Government finalizing programmes on efficient usage of the newly discovered oil reserves as Uganda begins to drill her own oil. The proposed legislation will also ease prudent utilization of all oil revenues to generate further growth of the economy. The Minister further says that when oil production starts, prudent utilization of the Oil revenues,  will be ensured by all investments and other expenses from the Fund will being budgeted for normally, and will also be charged on the Consolidated Fund, with the necessary authorization by Parliament.

15:18 EAT: Under Presidential Initiative for Scientific Innovation, Kiwanuka says 500 jobs were created in the food science and technology sector.

14:58 EAT: In a continued recap of the financial year ending,  the Minister says inflation in China, India and Kenya, the main importers of commodities into Uganda has contributed to the price war in Uganda. She adds that the slow growth of Uganda exports in the previous year is due to the slow recovery from the recession.

14:52 EAT: In her overview of the performance of the economy National output GDP rebounded grown at 6% compared to the 5% of 2009-2010. Says agricultural sector has grown. However this provokes murmurs of disagreement from some members of parliament.  Telecommunication industry grew by 21% and financial  services grew by 10%  general price levels grew by 16% per annum and prices for electricity etc did so by 9% .

14:48 EAT: Finance Minister comes formally congratulates President Museveni and Speaker of Parliament Rebecca Kadaga on their election victories and elevation to office. She also proposes a motion for parliament to desolve into a committee of supply and consider the estimates of revenue expenditure of financial year 2011/2012.

14:38 EAT: Speaker announces that starting next week, the process of constituting the parliamentary commission and the parliamentary committees will start.

14:35 EAT: With all relevant guests in attendance, playing of the National Anthem begins to signal the beginning of reading the Uganda Budget 2011-2012.  A prayer for the country follows.

14:30 EAT: First lady and Minister for Karamoja Affairs Janet Kataha Museveni arrives for the reading of the 2011-2012.  Although she arrived in the same car with President Museveni, protocol as a full minister means that Janet entered the hall in her own right representing her ministry. 

14:20 EAT: Maria Kiwanuka is led by a protocol personnel to the high table where she joins Chief Justice Benjamin Odoki. She greets him and then after a moment rises again to for the formal photo session with the media. She dressed in  bright African attire.

14:20 EAT: Guests led by President Museveni enter into the conference hall to prepare for the reading of the budget speech. Security closes the door behind them.

14:16 EAT: President Museveni inspects a guard of honour before proceeding to listen to the reading of the speech by Maria Kiwanuka. Speaker of Parliament Rebecca Kadaga arrived shortly before the President Museveni.

14:16 EAT: Minister of Finance and Economic Planning Maria Kiwanuka arrives at Serena Conference Center to deliver the budget 2010-2011 for Uganda. The five East African countries are simultaneously reading their budgets (Uganda, Kenya, Tanzania, Rwanda, Burundi) as agreed in the East African Community. The 2011-2012 budget is Kiwanuka’s first as Minister of Finance.