PSST Ggoobi Highlights Opportunities for Private Sector in UGX 72 Trlllion Budget
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| File Photo/Courtesy: PSST Ramathan Ggoobi delivering his keynote address at the Post-Budget Dialogue. |
softpower.ug, June 15, 2024 | The Permanent Secretary of the Ministry of Finance, Planning and Economic Development, and Secretary to the Treasury, Ramathan Ggoobi, has outlined significant opportunities in the UGX 72 trillion budget for the financial year 2024/25. He urged private sector players to seize these opportunities.
Delivering a keynote speech at the 2024 Post Budget Dialogue organized by Absa Bank Uganda in collaboration with Deloitte and other partners at the Kampala Serena Hotel, Ggoobi said, “In the next financial year, we have allocated funds for wealth creation initiatives, commercial agriculture, and value addition. The Parish Development Model aims to bring more people into the money economy. We have capitalized UDB to provide patient, low-cost capital to support enterprises. There are funds available through Emyooga and the Agriculture Credit Facility (ACF), totaling UGX 2.64 trillion,” he stated.
Ggoobi added, “We have also allocated funds for skilling the youth and supporting small-scale businesses. We are working with the Private Sector Foundation of Uganda to ensure that women-owned businesses mature into formal enterprises.”
He emphasized that the private sector, including banks, needs to align with key budget themes such as agro-industrialization, mineral development, and tourism.
Regarding budget priorities for the financial year 2024/25, Ggoobi highlighted investing in the people of Uganda through education, health, water, and sanitation, with a budgetary allocation of UGX 10.2 trillion. Other priorities include peace and security (UGX 9.1 trillion) and infrastructure maintenance (UGX 5 trillion).
Absa Bank Uganda Managing Director Mumba Kalifungwa noted that the Financial Year 2024/25 National Budget represents a crucial milestone in Uganda’s economic development, setting the tone for fiscal policy and outlining the government’s revenue and expenditure priorities for the coming year.
“I commend the government for its commitment to driving economic growth and fostering an environment that supports sustainable development. The 2024/25 National Budget outlines several key areas that will significantly contribute to our nation’s progress,” he said.
Kalifungwa added, “Our economy has remained resilient and is projected to grow at 6%, despite a slowdown in quarter-on-quarter growth. Globally, uncertainty remains due to the impact of geopolitics, international commodity prices, weaker global growth, global inflation, and monetary policy responses on our economy.”
Allan Ssenyondwa, the Policy and Advocacy Manager at the Uganda Manufacturers Association (UMA), stated that while the government’s priorities for the next financial year are good, there is a need to move from the macro to the micro level.
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| File Photo/Courtesy: PSST Ramathan Ggoobi shakes hands with PSFU’s Sarah Kagingo as Absa’s Mumba Kalifungwa looks on. |
Revenue Sources
Ggoobi stated that the primary source of revenue to finance the Financial Year 2024/25 National Budget is domestic revenue (both tax and non-tax) at UGX 32 trillion. Other sources include budget support at UGX 1.4 trillion, domestic borrowing at UGX 9 trillion, petroleum funds, and local government revenues amounting to UGX 294 billion.
Sarah Chelangat, the Commissioner of Domestic Taxes at the Uganda Revenue Authority, explained that for the last three years, the government has not introduced new taxes but has focused on improving tax administration, a practice that will continue in the financial year 2024/25.
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