today's Pick
Uganda’s foreign exchange hits $ 3.1 billionPublish Date: Jun 12, 2014
Uganda’s foreign exchange hits $ 3.1 billion
  • mail
  • img
Finance Minister arrives to deliver the 2014/15 Budget speech. Photo by Enoch Kakande
newvision

 By Vision Reporter

Uganda’s foreign exchange reserves have improved, finance minister, Maria Kiwanuka, has said.


 Presenting the 2014/15 national budget on Thursday, the minister said that foreign exchange jumped from US$ 2.9 billion in June 2013 to US$ 3.1 billion, expected at the end of June 2014.

“This is equivalent to 4.2 months of future imports of goods and services.  Government’s medium term objective is to maintain a level of foreign exchange reserves of at least five months import cover, which adequately provides a buffer against external shocks,” the minister said.

The minister however, reported that Uganda Revenue Authority registered a shortfall of sh475b for this year.  

“Net URA revenues for FY2013/14 were projected at sh8, 578b, but collections are estimated at sh8, 104b which represents a 94% of the projected revenue,” the minister submitted.

She attributed the underperformance of revenue collections to lower than projected growth in the economy, which affected particularly Value Added Tax and Corporate Income Tax.

However, URA revenue collection increased by 13.4% this fiscal year.

The minister said in the nest fiscal year, Government will take corrective measures geared towards improving revenue performance.

This will include strengthening tax revenue administration, and new tax revenue enhancement measures.

The domestic financial markets for the FY2013/14 budget amounted to sh1,747.8b, on a net basis to supplement domestic revenues for the infrastructure investment projects especially roads.  

In the coming financial year, the minister said, the net domestic financing will amount to sh2,539.1b  which includes a drawdown of the energy fund to finance the Karuma and Isimba hydropower projects,  and reflects  an additional sh791.3 billion over and above the approved levels in  Financial Year 2013/14.

In the next financial year, US$ 1,017 million is in external support. Project support constitutes US$991 million. This represents general budget support amounting to US$ 25.7 million, excluding debt relief, has been committed by bilateral Development Partners.

 

The statements, comments, or opinions expressed through the use of New Vision Online are those of their respective authors, who are solely responsible for them, and do not necessarily represent the views held by the staff and management of New Vision Online.

New Vision Online reserves the right to moderate, publish or delete a post without warning or consultation with the author.Find out why we moderate comments. For any questions please contact digital@newvision.co.ug

  • mail
  • img
blog comments powered by Disqus
Also In This Section
Lwakataka remanded on murder charges
POPULAR rally driver, Ponsiono Lwakataka (38) has been remanded to Kalisizo Central Government Prison after nine counts of murder charges were read against him before the Rakai Grade 1 magistrate...
Government assures tourists on security
GEN. Aronda Nyakairima, the minister for internal affairs, said the tribal clashes that caused tension in the Rwenzori region earlier this month have since ended...
A French lawyer said he had lodged a complaint at the International Criminal Court on behalf of the Palestinian justice minister accusing the Israeli army of "war crimes"...
South Africa to host 2016 AIDS conference
South Africa''s port city of Durban will host the 21st International AIDS Conference in 2016, marking the forum''s return to Africa after 16 years....
8 pupils struck dead by lightning in Bushenyi
THE shocking incident happened at 4:45 PM during a simple drizzle, as the pupils were in class for evening lessons at the school...
Makerere agrees to clear staff allowances
Makerere University has agreed to pay staff allowance arrears for the month of May, amounting to sh3.7b....
Should government review powers of kings?
Yes
No
Can't Say
follow us
subscribe to our news letter