The Minister of Finance, Matia Kasaija, has stated that the economy has remained resilient and is on the right track to full recovery following the COVID-19 impacts.
The finance minister made these remarks while meeting Members of Parliament of Uganda on the Committees of Budget, National Economy, Finance, Planning, and Economic Development on Friday, September 1, 2023, at Speke Resort Munyonyo.
“The economy has remained resilient and is on the right track to full recovery. It is projected to grow at 6% this financial year and 7% next financial year,” Kasaija said.
Kasaija also mentioned that the Local Government Budget consultations will begin on September 18, 2023, and that the National Budget Conference, where he will present the budget strategy for FY 2024–25, will take place on September 14, 2023, at Kololo Independence grounds.
Uganda’s merchandise trade deficit has also narrowed, according to the ministry’s monthly state of the economy report for July 2023.
“Year to year, the merchandise trade deficit narrowed by 32.2 percent from $365.11 million in June 2022 to $247.43 million in June 2023,” the report stated.
According to the report, an increase in export earnings for beans, simsim, cotton, gold, and coffee accounted for the majority of the increase in exports.
The reports also continued to show that the East African Community (EAC) continued to be Uganda’s largest export market, providing 33.9% of the market.
The Minister of State for Finance, Planning, and Economic Development, Amos Lugolobi, stated that it is necessary for a country to live within its means and prepare budgets that can be implemented within the available resources, as opposed to budgeting for what we cannot pay for. His statement comes at a time when Uganda is facing funding cuts from the World Bank.
The meeting was aimed at improving collaboration and having a common understanding on a number of issues, including programme-based planning and budgeting, the fiscal consolidation strategy, budget execution, and reporting, especially at this time when the budget cycle for FY 2024–25 is starting.