Summary:
- Minister Musasizi provided an update on the preliminary projected resource envelope for FY 2025/26, which amounts to Shs 57.441 trillion, down from Shs 72.137 trillion in the current FY 2024/25.
KAMPALA: Minister of State for General Duties, Henry Musasizi, along with the Permanent Secretary to the Treasury (PSST) Ramathan Ggoobi and their technical team, appeared before Parliament’s Committee on Budget on Tuesday to discuss the National Budget Framework Paper (BFP) for the fiscal years 2025/26-2029/30.
During the meeting, several key issues were raised that required clarification from the Ministry of Finance, Planning, and Economic Development. These included: the alignment of the BFP with the National Development Plan IV (NDPIV), adherence to the Charter for Fiscal Responsibility, the budget strategy and costing for priority areas in FY 2025/26, and the projected resource envelope for FY 2025/26.
Minister Musasizi provided an update on the preliminary projected resource envelope for FY 2025/26, which amounts to Shs 57.441 trillion, down from Shs 72.137 trillion in the current FY 2024/25.
He also shared insights on the fiscal and budget performance for the first half of FY 2024/25, revealing that Shs 39.914 trillion, or 55.3% of the approved budget, had been released to government Ministries, Departments, Agencies (MDAs), and Local Governments.
The Committee expressed concern over Uganda’s growing public debt stock and the mounting domestic arrears. Minister Musasizi disclosed that as of June 2024, Uganda’s public debt stood at Shs 94.9 trillion, but reassured the Committee that the public debt remains sustainable in the medium and long term. He pointed out that the ratio of public debt to GDP was 46.8% in FY 2023/24.
Addressing the issue of domestic arrears, Minister Musasizi revealed that the most recent report from the Internal Auditor General estimated the stock at Shs 3.521 trillion, following the payment of Shs 13.8 trillion, including Shs 9.1 trillion to the Bank of Uganda.
PSST Ramathan Ggoobi also provided responses to key questions regarding the implementation of the Parish Development Model (PDM), the strategies for achieving 10-fold economic growth, and government priorities under the ATMS framework.
He also discussed measures to lower the cost of doing business and improve the effectiveness of tax expenditures, emphasizing the importance of cost-benefit analysis.
This robust dialogue between the Ministry of Finance and the Committee provided essential clarifications and insights into the government’s fiscal management, laying a clear foundation for the upcoming budget.
