Finance ministry, CAOs to sign pacts on non-tax revenue

Mar 05, 2024

NTR can include payments for driving licences, passport fees, non-governmental organisation registration, and registration of land titles.

Ramathan Ggoobi, Finance ministry’s permanent secretary and secretary to the Treasury. (File Photo)

Umar Kashaka
Journalist @New Vision

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The finance ministry says it is going to sign commitment agreements with all accounting officers (CAOs) of non-tax revenue (NTR) collecting institutions. The agreements are expected to detail what the accounting officers are expected to do, the tools to use, and the results (outputs and impact).

This was revealed by the ministry’s permanent secretary and secretary to the Treasury, Ramathan Ggoobi, while closing the three-day workshop to review the resource envelope for the next financial year on Saturday, March 2, 2024.

The workshop held at Speke Resort Munyonyo in Kampala brought together all stakeholders in the revenue mobilisation efforts, including the Uganda Revenue Authority (URA) and agencies that collect NTR, which is the recurring income earned by the government from sources other than taxes.

NTR can include payments for driving licences, passport fees, non-governmental organisation registration, and registration of land titles.

While presenting the 2023–2024 national budget at the Kololo Ceremonial Grounds in Kampala on June 15, 2023, Finance Minister Matia Kasaija said the money will be raised from different sources.

The minister said domestic revenue will amount to shillings 29.7 trillion, of which 2.3 trillion will be NTR.

Ggoobi also said on Saturday that URA and other revenue collectors will be supported to collect more revenue, adding that the government is going to step up fiscal consolidation, which entails less borrowing, allocative efficiency, and more revenue collection.

He also said the window for borrowing to finance the budget is closing, adding that commercial borrowing will only be acceptable for key projects with a good return on investment.

He noted that some domestic borrowing will continue to finance key needs in the budget.

Ggoobi also said monitoring the performance of projects is going to be enhanced to ensure funds are utilized promptly.

The ministry said on X, formerly Twitter, that after the workshop, the directorate of economic affairs was now working on the final resource envelope for the next financial year. 

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