By Prisca Wanyenya
The Minister of State for Finance (General Duties) Henry Musasizi has revealed that in the coming 2022/2023 national budget, Uganda Revenue Authority (URA) is expected to collect domestic revenues to a tune of Shs25.516Trn.
Of the total domestic resources in FY 2022/23, Shs23.755Trn is projected to be raised from tax sources and Shs 1.761Trn from Non Tax revenue sources.
While tabling the National Budget Framework Paper 2022/2023, Government anticipates to spend Shs32.757 billion in the FY 2022/23 up from Shs32.397Trn Government had projected to spend in 2021/2022.
The Minister said: “The reduction in expenditure as a percentage of GDP is in line with the need to undertake fiscal consolidation to ensure fiscal and debt sustainability.”
Government is seeking to look abroad to finance its budget, with a total of Shs6.868Trn is projected as external financing in FY 2022/23 and of this, Shs4,770Trn is in form of project loans, while Shs1.229Trn is expected in loans.
Government will also be hitting the domestic market to borrow from local commercial banks whose projections stand at Shs2.836Trn.
The Ministry of Finance also revealed plans to set aside Shs2.463Trn for external debt repayment and this has been prompted by the increase in non-concessional loans the government has been acquiring lately, typically characterised by shorter grace periods, with some loans nearing their date of maturity.
Additionally, Uganda will pay Shs5.088Trn in FY 2022/23 in interest payment loans and of this, Shs4.059Trn is projected to cover domestic interest payments while Shs1.029Trn will cater for foreign interest payments and commitment fees.