Highlights from Kasaija’s budget speech

By  Angella Nampewo

What you need to know:

  • The size of economy expanded to Shs162.1 trillion (USD 45.7 billion)

Economy

Uganda’s GDP per capita increased to USD 1,046 (Shs3.7 million) per person per year, according to Finance Minister Matia Kasaija.

The size of economy expanded to Shs162.1 trillion (USD 45.7 billion).

Related

Inflation rose from 2.7 per cent in January 2022 to 6.3 per cent in May 2022.

READ: Matia Kasaija's full budget speech for financial year 2022/2023

The shilling depreciated by 1.7 per cent in three months to June 2022 and by 6.7 per cent against the dollar between June 2021-June 2022.

Revenue collection FY2021/22: Shs22.425 trillion, shortfall of shs939 billion.

Taxation

  • No new taxes in FY2022/23
  • Zero rental income tax for those earning rental income below Shs2.82m
  • Rental income rate of 12% for earnings exceeding Shs2.82m
  • Tax exemptions for supply of oxygen cylinders, assistive devices for PWDs, supply of airport user services
  • Cash basis accounting for suppliers to Government
  • NIL stamp duty on the following:
  1. Agreements relating to deposit of title deeds or personal property as security for borrowing
  2. Agricultural insurance policy
  3. Security bond or mortgage bond
  • Reduced excise duty on opaque beer and fermented beverages to 12% or shs150 per litre

Budget allocations FY2022/23

  • Shs3.897 trillion improvement of security and security infrastructure
  • Shs1.059 trillion for Parish Development model

To enhance anti-corruption drive: Justice, law and order: Shs1.432 trillion

  • Shs381.6 billion judiciary
  • Shs95 billion for DPP
  • Shs876.4 billion for Uganda Police
  • Shs308.7 billion for Uganda Prisons Service
  • Shs79.4 billion IGG


  • Shs628 billion to mitigate climate change
  • Shs564.39 billion boost agriculture production
  • Shs1.449 trillion agro industrialisation, standards and market entry
  • Shs194.7 billion tourism
  • Shs904.1 billion development and commercialisation of minerals, oil and gas
  • Shs1.027 trillion water and environment sub programme
  • Shs4.14 education and skilling
  • Shs274.4 billion advancing innovation
  • Shs4.3 trillion transport and infrastructure
  • Shs1.573 trillion power infrastructure
  • Shs124.2 billion digitalisation
  • Shs495 billion salaries of medical workers, scientists and science teachers
  • Shs5.1 trillion decentralisation, funding local government

Resource envelope

Total revenue: Shs48, 130.7 billion

Domestic revenue: Shs30, 797.3 billion; (63% of total resource envelope) of which tax revenue is 23,754.9 billion and Shs1, 795.9 billion is non-tax revenue

Total expenditure: 48,130.7 billion, less domestic debt refinancing and Appropriations in Aid amounting to Shs39, 884.2 billion.

At the end of December 2021, total public debt stock: Shs73.5 trillion; External debt stood at shs45.72 trillion; Domestic debt stood at 27.77 trillion

Nominal debt to GDP ratio of 49.7 per cent


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