NRM MPs resolve on global economic squeeze
Oct 27, 2011
THE Global financial squeeze coupled with local factors are a recipe for slowed economic growth, the NRM caucus has observed.
By Patrick Jaramogi
THE Global financial squeeze coupled with local factors are a recipe for slowed economic growth, the NRM caucus has observed.
David Bahati the caucus chairperson said NRM is very aware that the economic problems around the world combined with local factors have the potential to damage Uganda’s growth and have already hurt the standard of living for many Ugandans.
Bahati pointed out that the caucus is eager to continue playing a strong role in stabilizing the Ugandan economic situation to the greatest extent possible for its people.
In a release issued Thursday after a week-long Kyankwanzi retreat, Bahati noted that NRM MPs resolved to ensure that Ugandans enjoy the revenue of oil as it comes online.
“Significant revenue from that source is still years away. Right now, there are other equally available riches that we must manage for the benefit of our people,” he said.
He stated that he focus should be geared towards policies that can most benefit the people of Uganda in the short, medium and long term.
Bahati said that NRM caucus agreed that government provides adequate budgetary support and prioritization of agriculture from 4.5% to 7% of GDP for purposes of value addition.
Value addition will include the attracting or fabricating of fruit factories for Kayunga, Soroti, Luwero, Masaka where there is significant fruit growing, he added.
“We resolved that government promotes, empowers and funds local fishing communities with better gears and related equipments to enhance the fishing sector, while halting illegal farming and observing good fishing practices such as fish farming,” noted Bahati.
According to the statement, agricultural infrastructure will be enhanced through provision of water for agriculture production; valley tanks and valley dams for livestock; water for irrigation; water for fish resources/ farming and disease, pest and vector control.
“We shall avail cheap agricultural loans for farmers to support agricultural productivity,’ he said.
“We shall avail cheap agricultural loans for farmers to support agricultural productivity,’ he said.
He pointed out that the caucus supports the careful and prudent utilization of interest rates imposed by the Bank of Uganda, as an instrument for controlling inflation in the short term.
“The caucus urges a particular priority for the Central Bank to urge commercial/retail banks to implement a fixed interest rate policy on salary loans so that ordinary working Ugandans are able to plan their financial commitments with some stability,” he said.
“The caucus urges a particular priority for the Central Bank to urge commercial/retail banks to implement a fixed interest rate policy on salary loans so that ordinary working Ugandans are able to plan their financial commitments with some stability,” he said.
The caucus further recommended that a multi-sector/multi discipline task force or committee to include: the Central Bank, private sector, and key Ministries and Parliamentary committees, study further the impact of interest rate on inflation and growth.
Bahati said the caucus urged government as a means to curb on high rate of unemployment to establish short, medium, and long term interventions such as accelerated value addition and a land fund for youth.
“The purpose of the Kyankwanzi retreat was primarily to deal with the economy here and now. We must focus on immediate steps such as practical investments in value added agriculture, stabilization of interest rates, and the creation of jobs if we are going to support Ugandans through a difficult economic time here and around the world,” he noted.