- This was disclosed at the launch of the Charter for fiscal responsibility a social agreement between the public and the government.
- Uganda's oil production will generate 2.8 billion dollars annually.
The Government has announced that Uganda's oil production will generate 2.8 billion dollars annually starting 2025 and will last 10 years.
This was disclosed by the Minister of finance in charge of planning Amos Lugolobi at the launch of the Charter for fiscal responsibility a social agreement between the public and the government in regard to the management of oil resources.
The purpose of the Charter is to provide Government's fiscal policy objectives in the next five years that will ensure sustainable delivery of the country's goal of socioeconomic transformation resulting in increased household incomes and improved quality of life of Ugandans.
This is the second Charter for Fiscal Responsibility (“the Charter”) that will run for the period FY2021/22 – FY2025/26.
The Charter sets out Government’s commitment to managing fiscal policy in accordance with clear and measurable objectives that are consistent with the following fiscal principles;i. Sufficiency in revenue mobilization to finance Government programmes.
Minister Lugolobi says most of the oil money will be saved for the future generation,Maintenance of prudent and sustainable levels of public debt and Ensure that the fiscal balance, when calculated without petroleum revenues, is maintained at a sustainable level over the medium term.
It will also ensure Management of fiscal risks in a prudent manner and Consistency of the Medium Term Expenditure Frame work with the National Development Plan.
The charter has also been green flagged to provide Efficiency, effectiveness and value for money in expenditure.
The Charter takes into consideration the start of commercial oil production in FY2024/25, therefore the measurable fiscal objectives are mindful of the existence of petroleum revenues in the medium term