Finance releases sh7.3trillion to gov't entities

The Ministry of Finance has released a total of sh7.3trillion to government entities to spend in the second quarter of the 2019/2020 financial year.

The sh7.3trillion released, which covers the months of October, November, and December, includes sh2.6trlion (which is 35.6% of the total release) for debt repayment.

Uganda Roads Authority which mostly uses the money allocated to it in the construction of roads has been allocated sh436b. The ministry for works and transport has been allocated sh162b while Uganda Road Fund has been given sh110b.

With an allocation of sh635.2b, the defence ministry followed the ministry of works in getting the biggest portions of the money released.

It is important to note that the defence ministry got the biggest increment in the national budget as its budget increased from sh1.7trillion in 2018/2019 to sh3.6trillion for the current financial year of 2019/2020 of which sh2.1trillion is classified expenditure.

The secretary to the treasury Keith Muhakanizi stated that he overall revenue collections for the four months (July to October) amounted to sh5.4trillion against a target of sh6071.47b (sh6trillion). This has led to an unusually high revenue collection deficit of sh603.6b.

 The poor revenue performance has been attributed to delayed implementation of digital stamps, delays in the renewal of the MTN license, delays in enforcing rental tax collection across the country, and delayed implementation of automated fiscal devices which would enable government monitor the actual production volumes of manufacturers.   

The ministry of finance officially presented to journalists and civil society groups the information of the release for the second quarter today.

During the same interaction, the ministry signed a memorandum of understanding with various civil society groups to enhance budget transparency and accountability for public funds.