THE SHILLING RECOVERING ITS STRENGTH

UGANDA’S DOMESTIC REVENUE BEATS SHS. 11,333 BILLION PLANNED TARGET

By Tukundane Yonna

Inflation rate in Uganda has remained stable and in single digit as planned. Annual headline inflation was recorded at 5.4% in May 2016.

In the first half of the last financial year, inflation peaked at 8.5% in December 2015, due to the pass-through effects of the sharp weakening of the Uganda shilling against the US Dollar.

This also caused an increase in prices including electricity tariffs which adversely affected both manufacturers and domestic consumers.

However, Government implemented prudent fiscal and monetary policies that reduced inflation and therefore restored, as I speak now, price stability in the economy.

The provisional outturn for Uganda’s domestic revenue for the financial year 2015/16 is Shs. 11,598 billion equivalent to 13.2% of GDP. This is higher than the planned target of Shs. 11,333 billion.

The Shs. 11,598 billion is accounted for as follows: provisional outturn for tax revenue is Shs. 11,192 billion, non-tax revenue is Shs. 282 billion. Oil capital gains tax revenue Shs. 124 billion.

Uganda’s provisional outturn for total external financing during the year 2015/16 is Shs. 5,602 billion, of which project loan disbursements is Shs. 4,355.4 billion and grants Shs. 1,247 billion. The provisional outturn for non-concessional loan disbursements is Shs. 3,041 billion while a concessional loan disbursement is Shs. 1,315 billion.

The non-concessional loans are financing major priority projects such as Karuma and Isimba Hydropower plants and other projects in the transport and ICT areas. Budget support loans were Shs. 120 billion.

Government domestic borrowing is projected to be below the amount planned of Shs. 1,384 billion for the financial year.

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