Government to focus on private sector for strong growth

Strengthening the private sector, efficient and sustained exploitation of productive sectors, increasing quality of productive infrastructure, inclusiveness and the wellbeing of the population and enhancing the effectiveness of administrative governance will be the key focus areas in the 2020/21 financial year, according to Finance Minister Matia Kasaija.
Speaking during the Budget Conference in Kampala last week, Mr Kasaija said the five areas will be key priority sectors from which government will seek to promote shared prosperity in the 2020/21 financial year.
Budget strategy for the 2020/21 financial year, he said, will be anchored on the medium-term- growth and development objectives of the third National Development Plan.
“Special focus will be on promoting equity, an efficient public sector and vibrant private sector to support growth,” he said, noting that government will seek to consolidate development gains, with a central focus on increasing household incomes through a resource-led-industrialisation.
Government will also seek to enhance value addition in agro-based industrialisation, mineral beneficiation, petroleum resources exploitation, labour-intensive manufacturing and trade, scientific research and innovation.
Mr Kasaija said that whereas government has made good progress on the development of infrastructure for energy generation and road transportation, there was need to ensure that energy is evacuated and transmitted to production centres and household consumption units.
“The maintenance of the existing transportation and electricity network and the development of urban infrastructure to support efficient urbanization is crucial,” he said, noting that government will also engage more resources in human capital development to help women and youth provide more productivity.
Uganda currently has 60 per cent of its population below 18 years, which calls for serious investment in the education sector and jobs creation.
Government will also put focus on strengthening the private sector to make it a strong driver of Uganda’s economic growth.
Previously, some experts have argued, Uganda’s private sector is still weak to drive growth.
However, Mr Kasaija said the private sector was vital for creation of jobs, increasing the revenue base and closing the gaps on publicly provided services.
Government will also seek to enhance local revenue mobilization to create sufficient financing stocks that have the capability to support apparent needs.

Other measures

According to Finance Minister Matia Kasaija, government will also engage other measures such as enhancing non-tax revenues through the review of the relevance and appropriateness of some rates currently charged and propose other necessary adjustments to ensure that rates are commensurate to the services offered by government.