Govt sets aside sh18.509 trillion for NDP IV implementation

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The government has earmarked sh18.509 trillion to support the implementation of the thematic areas under the fourth National Development Plan (NDP IV), collectively referred to as ATMS.

ATMS stands for Agro-Industrialisation, Tourism Development, Mineral-Based Industrial Development, and Science, Technology and Innovation.

This was disclosed by the Minister of State for General Duties in the Finance Ministry, Henry Musasizi, during his appearance before the Budget Committee of Parliament on Tuesday, May 13, 2025. He explained that the funds will be available for use in the financial year 2025/2026.

Musasizi further noted that in the same period, the government has allocated sh1.4 trillion as a down payment towards all categories of arrears.

According to the Auditor General, domestic arrears increased from sh10.5 trillion in the financial year 2022/2023 to sh13.81 trillion by the end of the financial year 2023/2024.

However, of the total, sh8.313 trillion for redemptions was provided for in the 2024/25 financial year. “This means the outstanding arrears stock is sh3.854 trillion only. At this rate, therefore, we shall be able to clear the remaining stock within three financial years,” Musasizi said.

During the same session with Parliament, Musasizi reported that revenue collection has not grown as projected in the Charter for Fiscal Responsibility, due to the slow recovery of businesses affected by the COVID-19 pandemic.

He noted that revenue performance has hovered between 13.4% and 14% from the financial year 2020/2021 to the financial year 2024/2025.

The minister added that the government is proceeding with full-scale implementation of the Domestic Revenue Mobilisation Strategy (DRMS), highlighting that significant investment has been made in the Uganda Revenue Authority to improve tax administration and increase efficiency in tax exemption processes.

Musasizi, who was accompanied by the permanent secretary and secretary to the treasury, Ramathan Ggoobi, and his technical team, was appearing before the Budget Committee to respond to issues raised regarding the draft estimates of revenue and expenditure for the financial year 2025/2026.