Govt fiscal deficit hits sh1.807 trillion
The finance ministry report on the performance of the economy for April 2025 says this was higher than the projected fiscal deficit of shillings 1,213.07 billion (1.213 trillion) for the month on account of lower than targeted tax and non-tax revenues
Permanent Secretary of the Ministry of Finance and also the secretary to the Treasury (PSST), Ramathan Ggoobi. (File photo)
Umaru Kashaka
Journalist @New Vision
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Uganda government operations in April 2025 resulted in a fiscal deficit (net borrowing) of shillings 1,807.72 billion (1.807 trillion), according to the latest report.
The finance ministry report on the performance of the economy for April 2025 says this was higher than the projected fiscal deficit of shillings 1,213.07 billion (1.213 trillion) for the month on account of lower than targeted tax and non-tax revenues, coupled with higher than planned expenditure.
Fiscal deficit is the excess expenditure levels weighed against available resources.
During the month, tax revenue collections amounted to shillings 2,180.09 billion (2.180 trillion) against a target of shillings 2,279.51 billion (shillings 2.279 trillion), implying a shortfall of shillings 99.42 billion all three major tax categories registered shortfalls in varying degrees.
On the other hand, total expenditure amounted to shillings 4,236.71 billion (4.236 trillion) against a plan for the month of sh3,782.74 billion (shillings 3.782 trillion).
Taxes on international trade transactions registered the biggest shortfall of shillings 53.06 billion as collections amounted to 863.35 billion against a target of 916.42 billion.
The main cause of the underperformance in international trade taxes was lower than projected fuel imports, which affected petroleum duty collections, causing them to perform at only 76.8% of what had been projected for the month.
Consumption taxes (indirect domestic taxes) amounted to sh629.86 billion against a target of sh664.86 billion, translating into a shortfall of sh35.00 billion for the month of April 2025.
Whereas Value Added Tax (VAT) accounted for most of this shortfall (sh24.71 billion), excise duty also contributed sh10.29 billion to the shortfall.
Some of the goods which recorded lower than projected collections included soft drinks, cooking oil, spirits/waragi and sugar, among others. Additionally, sectors including construction, real estate, trade, and hotels and restaurants registered lower than anticipated VAT during the month.