BUDGET SPEECH, Financial Year 2010/11
A year ago, Finance Minister Syda Bumba presented a budget strategy which broadly focused on improving the business climate of the country and revitalizing production through a range of strategic interventions.
In this year's budget speech, the economy is estimated to have grown by 5.8 per cent in real terms in 2009/10, compared to 7.2 per cent growth recorded in 2008/09. This year’s performance is in line with the Eastern African region average growth rate of 5.75 per cent, which is the highest in Africa’s regions. This shows the resilience of the region to economic shocks.
Petroleum Exploration and Production
Iinvestment in the petroleum exploration has so far exceeded US$ 900 million and is expected to increase when the development and production phases commence.
To date, five out of the ten exploration areas in the Albertine Graben are licensed to various companies. The Principles for the Oil and Gas legal and regulatory framework were approved by Cabinet and the Bill will be submitted to Parliament in the next financial year.
In Financial Year ending, as articulated in the State of the Nation Address, 33 out of 35 wells have yielded hydrocarbons, a positive sign of existence of oil.
