Am tired of borrowing ; Finance Minister Kasaija

In Summary
  • For over twenty years the Ministry has mobilized resources from a narrow base of financing options.
  • Uganda's finance minister is now calling for alternative sources of financing government expenditure.
Finance Minister Matia Kasaija speaking at the Launch of the Public Investment and Management strategy in Kampala.
Finance Minister Matia Kasaija speaking at the Launch of the Public Investment and Management strategy in Kampala.
Image: Moses Kidandi

Finance Minister Martia Kasaija has retaliated against the need for the government to get alternative sources of funding for government programs and reduce borrowing.

Hon. Matia Kasaija was speaking at the Launch of the Public Investment and Management strategy in Kampala. The strategy provides the framework of widening the scope of resource mobilisation from domestic, external, emerging and innovative finance options.

The Ministry of Finance, Planning and Economic Development (MOFPED) is mandated with the mobilization of Financial resources to enhance overall economic stability, development and transformation.

Image: Moses kidandi

For over twenty years the Ministry has mobilized resources from a narrow base of financing options composed of domestic tax revenues, concessional loans, and borrowing from the domestic market in form of Treasury Bills and Bonds.

Kasaija tells delegates attending the Launch of the Public Investment and Management strategy in Kampala that the three financing sources have served the country well, however, times and circumstances have changed.

He says the Population of Uganda has more than doubled over twenty years to 48.8 million to date, the country’s needs have evolved from poverty reduction to higher development aspirations like infrastructure development amidst a new global financing landscape. As a result, the Government of Uganda through MOFPED is required to do more regarding resource mobilization.

Image: Moses Kidandi

The need for increased resource mobilization by the Government necessitated the formulation of the Public Investment Financing Strategy (PIFS).

The Strategy provides a framework for widening the scope of mobilization of financial resources from domestic, external, emerging and innovative financing options.

These options are then appropriately linked to the programs as highlighted in the National Development Plan to achieve value for money.

The Public Investment Financing Strategy provides a platform for collaborations between Government, the Private Sector and various Development Partners during its implementation ultimately leading to wealth creation and development.