The Following are highlights of budgets for the 2015/16 fiscal year for Uganda, Tanzania and Rwanda.The budget announcements are coordinated across the East African Community, which comprises Kenya, Tanzania, Uganda, Rwanda and Burundi.
Uganda Finance Minister Matia Kasaija said in a budget speech that Uganda projected growth of 5.8 percent in 2015/16, compared with 5.3 percent in 2014/15.
“The economy is projected to grow at 5.8 percent next financial year, largely on account of the recovery in private sector consumption, as well as acceleration in both public and private investment,” Kasaija said, according to finance ministry statement on the speech.
“The budget deficit for the coming financial year is therefore projected to increase to 7 percent of GDP compared to 4.5 percent for this year. Over the medium term, the deficit will average about 6 percent.”
“To avoid an increase in relatively expensive domestic borrowing and reduce the fiscal burden of debt payments over the medium term, a larger share of the fiscal deficit will be financed by external loans. We will continue to pursue concessional loans as the preferred means of meeting our external financing requirements.”
“New domestic debt to be raised through Treasury Bills and Bonds next year is expected to amount to 1.384 trillion shillings ($437.97 million). These funds will help to finance Government’s contribution to infrastructure investment projects.”
“The total approved budget for next financial year is 23.972 trillion shillings. Out of this, 17.329 trillion shillings is allocated for spending by Ministries, Departments and Agencies (MDA’s), which includes statutory expenditures amounting to 1,148 billion shillings. 6.643 trillion shillings is debt repayments plus interest on total debt.
“The total debt repayment includes 4.787 trillion shillings which is meant to pay maturing domestic debt; 200 billion shillings for recapitalization of the Bank of Uganda; 1.371 trillion shillings and 285.7 billion shillings for domestic and external debt interest payments respectively.”
($1 = 3,160.0000 Ugandan shillings)
Reuters
