Government to cut money supply in the Economy to Counter Inflation.

Realizing the new revenue target will have to be a collective effort and commitment across government, civil society, private sector, and development partners is paramount. 

In a bid to achieve the above,Uganda Revenue Authority has developed and rolled out a full taxpayer education and improved service delivery strategy to promote transparency, information-sharing, partnership with stakeholders, and facilitating taxpayers through improved service provision to enhance taxpayer compliance towards realizing the revenue target.

This is according to John Musinguzi Rujoki the commissioner Gen Uganda Revenue Authority.

Last week, the Minister of Finance, Planning and Economic Development unveiled the new financial year’s UGX48 trillion budget and of this figure, UGX 25,550.8B (UGX 25.5 Trillion), which is about 53% of the budget, is to be financed from tax and non-tax revenue sourced internally, and the rest from aid and grants.

Much as URA projects to achieve the targets ,the tax body is facing challenges of unregistered traders and undeclared employment that  dominates the  economy.

The current tax register has about 2.4 million taxpayers out of a population of 45 million Ugandans. There are over 7 million people engaged in income-generating activities, but many are not contributing to the tax basket.

At the Post Budget conference,the permanent Secretary Ministry of Finance says  Government plans to cut money supply into the economy as a short term measure to control inflation.

Using both the physical and monetary policy there will also be a sharp increase in interest rates to discourage borrowing.

Ramathan Ggoobi made the remarks  as he made a presentation at the post budget conference organized by Uganda Revenue Authority.

According to Ggoobi,government will mainly focus on improving the value chain in Agriculture from production to marketing and value addition.

Ggoobi also says Government  has also shifted focus of relying on incremental budgets where money is borrowed to finance  priorities,I move that will see a responsive budget to the economy.

"We raised some of the money through the re-distribution of priorities "Ggoobi said.