The Finance Minister Matia Kasaija

According to the NBFP, Uganda’s economy grew at 6.5% in real terms during FY 2018/19 and after rebasing of GDP, the size of the economy increased to Ushs 128.5 trillion up from the initial estimate of Ushs 108.5 trillion. Real GDP growth is projected at 6.3% and 6.2% in FY 2019/20 and FY 2020/21 respectively and is expected to reach 7.0% by FY 2024/25.

The overall focus of the budget strategy for FY 2020/21 is to address challenges hindering the speed of economic transformation, rural economic development, expansion of the industrial base, job growth and delivery of essential social services under the theme: “Sustainable Industrialization for inclusive growth, employment and wealth creation.”

The total resource envelope for FY 2020/21 is projected to be UShs. 39,640.8 billion (39.6 trillion) and it comprises of both domestic and external sources down from Ushs.40,487.9 billion (40.4 trillion). This is largely on account of reduction in external financing.

In order to ensure alignment of the budget to the objectives of the third National Development Plan, the interventions for FY 2020/21 will fall under strategic clusters namely: Increasing production and productivity in the productive sectors of the economy, enhancing private sector competitiveness as well as consolidation and increasing of the infrastructure stock.

Other clusters are: Improving social service provision and regional equity, improving the effectiveness of governance and maintaining peace and security.

The commitment towards debt sustainability will be through reducing reliance on debt by increasing domestic revenue through the operationalization of the domestic revenue mobilisation strategy (DRMS) among other measures.

As at end of June 2019, the stock of public debt amounted to US$ 12.55 billion of which external debt was US$8.35 billion (approx. Ushs 30.85 trillion) and domestic debt was US$ 4.2 billion (Ushs 15.51 trillion). This is equivalent to 36.1% of GDP in nominal terms and 27.3% in present value terms

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Kasaija however clarified the matter that the move is not to ban gaming in the country but rather foreign betting companies who repatriate their profits back home.

The minister was speaking to a number of journalists at Imperial Royale Hotel on Tuesday during the launch and dissemination of a report on compliance of national budget framework paper.

“We’re not banning gaming. We’re saying this activity should be limited to only Ugandans. We have said that licensees that are running will not be renewed and new ones will not be issued to foreigners because we’ve discovered so much of our money is being exported through that gaming thing which as far as I am concerned has little value to the economy.

“It ends up by taking our very scarce foreign exchange which we earn through very difficult circumstances like growing coffee and other crops,” he said before encouraging youth to work hard,” the minister added.

According to the State Minister for Finance in charge of Planning, Mr David Bahati, President Museveni directed a ban on betting and ordered not to renew or issue licenses. This will encourage the youth to work hard.

Source: Daily Monitor.

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Mr He Ping, the company’s chairman for Africa business led a delegation to President Yoweri Museveni‘s home in Rwakitura and promised to finance the project.

“if given the opportunity they would partner with a local contractor to have the Kampala-Jinja Expressway successfully constructed.” a statement from the State House read.

Mr Museveni gave a directive to Finance Minister, Matia Kasaija and other concerned agencies to discuss the proposal with the chinese company. 

However, although the company had in October written to Unra expressing interest in the project, the Unra director for Roads and Bridges, Mr Samuel Muhoozi told Daily Monitor yesterday that procurement for the project had reached advanced stages and investors already injected in money.

“It is difficult to reverse the procurement anyhow and it is not in order. It is a good idea to partner with local contractors but if the company wants, they can participate in the upcoming projects,” Engineer Muhoozi said.

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President Museveni at a recent function. Internet photo

President Yoweri Museveni has urged the European Union (EU) to support Uganda’s efforts to relocate people from wetlands and forests and avert environmental degradation and landslides.

“When Hon. Kuteesa was at the UN, I tasked him with fundraising for this cause. We want to remove people from the wetlands. He raised US$22million. Support us to relocate these people,” the President said, adding that the recent landslide in Bududa District has woken up the population there and now they are ready to move.

The President and the European Union delegation held their annual political dialogue meeting in accordance with Article 8 of the Cotonou Partnership Agreement and forms part of regular political dialogue between Uganda and the EU on global, regional and national issues.

The European Union Ambassador to Uganda, H.E. Attilio Pacifici, who led the delegation, had earlier condoled with the President and the people of Uganda following the landslide disaster in Bududa District in which over 55 people are confirmed to have perished and hundreds displaced. He said the EU has already availed maps of Mt. Elgon from their world satellite to gather more information.

The delegation included Heads of Missions of Austria, H.E. Gunter Engelits, Belgium H.E. Hugo Verbist, France H.E. Stephanie Rivoal, Ireland, H.E. William Carlos, Italy H.E. Domenico Fornara, Germany H.E. Albrecht Conze, the United Kingdom H.E. Peter West, Poland, H.E. Jacek Bazariski, Czech Republic, H.E. Pavel Rezac, Netherlands H.E. Henk Jan Bakker, Sweden H.E. Per Lindgarde and Ms. Majbrit Holm Jacobsen, the Charge d’Affaires of the Danish Embassy.

The President and the Ambassadors talked about regional issues such as security in South Sudan, Somalia and the Democratic Republic of Congo (DRC), climate change, trade and investment climate, among others.

President Museveni called upon the Ambassadors to encourage companies in their countries to invest in Uganda citing that there is need to create employment for the youth. He assured them that he is handling the issue of the Uganda Investment Authority to stop the infighting for investor confidence.

The EU delegation commended President Museveni and the Government of Uganda for the commitment towards finding peace in the region to facilitate trade and development and hospitality towards the refugees.

Prime Minister Dr. Ruhakana Rugunda, Foreign Affairs Minister, Sam Kuteesa, that of Finance and Economic Planning, Matia Kasaija, Attorney General, William Byaruhanga, Security Minister, Elly Tumwiine, National Resistance Movement (NRM) Secretary General, Justice Kasule Lumumba and other senior government officials, attended the meeting.

Source: State House

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President Yoweri Museveni last week ordered for the suspension of Uganda Revenue Authority (URA) official Geoffrey Olaka together with other staff on allegations of  refusing to clear the machinery of Guangzhou Dongsong Energy Group Limited officials at customs.

President Museveni with Dongsong official at the launch of the phosphate project

Dongsong is the Chinese company developing a $620m (Shs2.2 trillion) Osukulu industrial complex in Tororo District which will include a fertiliser manufacturing plant and a steel plant.

President Museveni wrote a letter to the Finance minister Matia Kasaija, labelling Dongsong as a “serious investor” who intends “to turn the waste of the steel factory into construction bricks, and also wants to import sewing machines for sealing the bags of fertlisers”.

“The URA staff, either out of ignorance, malice or corruption are tossing our investors endlessly—in this case for the whole of July 2018. Meanwhile, the machinery blocked at Mombasa is incurring demurrage charge, Anybody who does not understand the mission of industrialising and modernising Uganda must leave URA.” Museveni wrote.

URA’s commissioner for public and corporate affairs Vincent Seruma acknowledged receipt of the letter and said “the matter is being handled administratively”.

URA officials, according to correspondences and insider accounts, had pressed Dongsong to pay customs duties for the machinery to the tune of Shs4.5 billion.

However, Dongsong’s lawyers ABMAK Associates maintained that the company in 2014 entered into a mineral agreement with government, which provided for tax exemption.

 

 

 

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Maize growers have been in a shock this season as the corn floated the entire market leading to price depreciation as low as 100 UGsh per kilogram.

A maize farmer standing on his harvest: Courtesy photo

Farmers claim that most of the finances used in planting and maintaining the farms are got from loans and since they have failed to get sufficient market for it, they don’t know how to recover the loans.

However, according to the finance minister, Matia Kasaija, the Shs100 billion availed by government shall help to buy off excess maize so as to bail-out the corn prices.  Maize will not be sold at less than Shs500 under this initiative.

Minister of Finance, Matia Kasaija: Internet photo

“Funds will be accessible to all interested traders in the maize business, who have requisite storage, cleaning and drying facilities in order to allow the maize to be stored for at least six months when prices are expected to recover,” Mr Kasaija said.

Lt Gen Charles Angina, the deputy coordinator of Operation Wealth Creation (OWC) urged farmers to ensure that the grains are of high quality and attract higher prices in the near future.

 

“My appeal is that farmers put that maize on tarpaulins and when they are to harvest, they should harvest maize which is dry,” Gen Angina added.

Gen Angina also added that they are partnering with the World Food Programme to put up medium sized storage facilities of at least 300 metric tonnes across the country and so far 10 have been put in place.

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The behavior irritated the court martial who reacted by dispensing the lawyer telling him not to return for future hearings.

“Are you silly? Whom are you banging tables for….get out. Military Police should escort this man, never come back to my court,” Lt Gen Gutti rumbled.

Still raged, Lt Gen Gutti shorn-off Mr Kitatta’s application to present CCTV footage  to disproof Pte Kasaija’s that the accused possessed a gun and military supplies.

Lt Gen Andrew Gutti: Internet photo

Pte Kasaija, attached to the Chieftaincy of Military Intelligence (CMI), testified that Mr Kitatta was found in possession of a pistol with five bullets and military uniforms at the time of his arrest while the latter’s co-accused persons were found with an SMG rifle with 20 bullets, machetes, iron bars, military uniforms and sticks, which they held while planning to carry out a demonstration.

Mr Kitatta has been on remand in military prison since February. He is jointly charged with 12 others, including Mr John Ssebandeke, a crime preventer from Nabweru in Wakiso District over alleged unlawful possession of firearms.

Mr Kitatta and his co-accused will stay on remand until September 10 to enable prosecution present the second witness.

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Hon. Kasaija first denied the allegations but later on he made an apology. “In my address, I never meant to say that Parliament passed 1% tax in error. I can’t come and fault and say that Parliament that acted in error, I couldn’t do that. I am part of this Parliament; I would have shot myself in the foot.” He added on saying “I apologize sincerely. I did apologize to the caucus yesterday. I never meant to say that Parliament passed the Act in error.”

However, Winnie Kiiza leader of opposition demanded that Hon.Kasaija submits a written statement of his apology. “I find it uncomforting that the apology that was demanded of the Minister is taken casually and yet it is affecting a serious matter because the integrity at Parliament is at stake, Ugandans will not believe it anymore.” She demanded.

Also read:

•  Uganda is not quitting ICC –Kadaga
• Nakaseke MP decries shortage of ARVs in district

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Gen. Tumwine makes a statement in Parliament assuring Ugandans about their safety

MPs security
Kadaga said the Parliamentary Commission would soon meet to consider the President’s letter on providing security to MPs.
In a letter to Finance Minister Matia Kasaija, Museveni directed the purchase of a fleet of double cabin pick up trucks with ‘carrier beds’ to carry army sharp shooters to protect MPs.
Hon. Thomas Tayebwa (NRM, Ruhinda North) objected to the plan and instead proposed that individual MPs in need of such security arrangements should register with the Clerk to Parliament.
He was widely applauded.
In a special Parliament sitting, Museveni issued a 12-point master plan to combat rising killings, kidnaps and high profile assassinations.

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Parliament won’t interfere in mobile money and social media taxes – Kadaga

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