Govt hit by cash crisis, scraps staff allowances

Finance minister Matia Kasaijja carries the Budget brief case ahead of the Budget reading in June 2020. PHOTO | ALEX ESAGALA 

What you need to know:

  •  The Uganda Revenue Authority continues to press hard to increase domestic revenue collections and it is expected to collect Shs19.6 trillion this financial year. Last month, the tax body announced a surplus of Shs1 trillion with net revenue collections of Shs4 trillion against the target of Shs2.9 trillion. The min
  • istry’s state of economy report for September showed that the economy had started to recover, with improvement in economic activity in August and September.

Government has indefinitely suspended payment of all allowances for its workers due to poor cash flow.
However, in a memo sent on Wednesday to the Permanent Secretary (PS), Secretary to Treasury (ST), the Ministry of Finance said the payments for staff of State House, Ministry of Defence and other priority agencies and statutory obligations would not be affected.


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