Finance Ministry needs Shs10 trillion to implement strategic plan
Ministry of Finance says more than Shs10 trillion is needed to implement the programme-based approach to planning and budgeting. Photo / File
What you need to know:
- The strategic plan sets out the strategic direction through which the Ministry of Finance will advance realisation of the third phase of the National Development Plan
The Ministry of Finance has said it will need at least Shs10.7 trillion to implement the 2021/25 strategic plan, which is designed to enable implementation of a competitive economy for national development.
The plan, Finance Minister Matia Kasaija said sets out the strategic direction through which the Ministry of finance will advance the realisation of the third phase of the National Development Plan (NDPIII).
“The plan draws extensively on policy recommendations of the NDPIII midterm review and reprioritisation exercise as well as regional initiatives intended to refocus government actions to transformative interventions that will recover growth, grow jobs, industrialise, formalise, and monetise the economy,” he said, noting that it also sets out goals and strategic objectives that the Ministry will pursue to achieve clearly defined outcomes within set timeframes.
Through the plan, the Ministry of Finance will seek to effectively implement the programme-based approach to planning and budgeting through which ministries, agencies and local governments will harmonise interventions to jointly deliver on transformative programmes.
Other goals will include increase the private sector competitiveness as well as facilitate industrialisation, formalise and monetise the economy to drive sustainable and inclusive growth.
To achieve this, government will focus on sustained economic recovery, achieve gross domestic product growth of 6 percent to 7 percent annually by 2025, increase the proportion of the national budget financed by domestic revenues from 53 percent in the 2022/23 financial year to 61 percent by 2025, improve household incomes and employment, and improve competitiveness by increasing the ratio of exports to gross domestic product from 14.2 percent to 17 percent by 2025.
The Ministry of Finance will also seek to maintain macroeconomic stability by keeping inflation below 5 percent, reduce of the number of households in the subsistence economy from 39 percent to 17 percent by 2024/25 and enhance efficiency in planning, allocation and utilisation of national resources.
