Tax revenue constituted 66 per cent of 2019/20 budget

The Ministry of Finance, explains that the performances of the external development budget is tied to the disbursement of funds by external development partners. Photo | File

What you need to know:

  • The highest grant was received from the European (EU) worth an equivalent of $46.21 million to support fiscal decentralisation, followed by Japan International Corporation Agency (JICA) worth an equivalent of $24 million (about Shs166.534 billion) to improve the traffic control in Kampala City.

The annual performance report 2019/20 by the directorate of debt and cash policy in the Ministry of Finance, Planning and Economic Development has shown that tax revenue constituted the highest source of cash flow for financing the budget for 2019/20 with 66 per cent.

The total revenue realized from taxes was Shs24.438 trillion against the projection of Shs3.524 trillion.  

The directorate states that this was followed by project support loans and grants which generated 18.6 per cent of the total inflows.

Non-Tax Revenue and AIA (Appropriation in Aid) with 6.6 per cent, while budget support contributed 6.2 per cent.  The report shows that there was a high variation budget support of Shs842.73 billion over the initial projection of Shs675.17 billion during the financial year 2019/20.

“This arose out of additional funding acquired to finance interventions towards fighting the locust invasion, Covid-19 impacts and flooding among others,” the report reads in part.  

The Petroleum fund contributed 1 per cent. Other receipts constitute cash received from dividends, disposals, and rent from government buildings.  

In the financial year 2019/20, a total of $112.86 million (about Shs406.807 billion) was received by the government as grants disbursement from the development partners.

The highest grant was received from the European (EU) worth an equivalent of $46.21 million to support fiscal decentralisation, followed by Japan International Corporation Agency (JICA) worth an equivalent of $24 million (about Shs166.534 billion) to improve the traffic control in Kampala City.  

The acting director, directorate of debt and cash policy, Ms Maris Wanyera said over the years, external financing has been contracted to undertake the government’s priority investments.

According to Section 36 and 44 of the Public Finance Management Act 2015 (as amended), the minister is responsible for Finance, Planning and Economic Development to raise loans and grants for various purposes. The directorate coordinates the external resource mobilisation.

Government has contracted external resources through five major instruments including Budget Support, Project Support, Export credit, technical assistance and Off Budget Support,” she said.  
 
[email protected]