Overview:
The annual budget for financial year 2023-24 has been projected at Shs52.74 trillion [$13.9 billion], an increase of Shs4.606 trillion [$1.2 billion] from the previous financial year, which was Shs48.134 trillion [$12.8 billion].
Uganda’s Minister of Finance is today, Thursday, June 15, 2023, set to present the 2023/24 National Budget to Parliament at Kololo Ceremonial Grounds.
This Year’s budget theme is: “Full monetization of Uganda’s Economy through Commercial Agriculture, Industrialization, Expanding and Broadening Services, Digital Transformation and Market Access.”
The annual budget for financial year 2023-24 has been projected at Shs52.74 trillion [$13.9 billion], an increase of Shs4.606 trillion [$1.2 billion] from the previous financial year, which was Shs48.134 trillion [$12.8 billion].
This budget will be financed by domestic revenues, budget support [loans, grants], domestic borrowing, interest payments, local government revenue, and project support [external].
Of the Shs52.7 trillion, Shs21.4 trillion is set aside for statutory expenditure, which covers items such as treasury operations totalling Shs18.9 trillion, pensions and gratuity for retired civil servants amounting to Shs856.2 billion, among others.
The budget committee in its presentation to parliament last month, it came to light that Uganda’s nominal debt to GDP fell from 53.1 percent for FY 2022/23 to 52.4 percent for FY 2023/24, a drop of 0.7 percent. This dip in debt in relation to GDP is a result of economic growth: rise in GDP, which can be attributed to inflation.
Inflation swells GDP as more money in circulation translates to more spending, which then triggers demand that ends in more production, which implies growth. In Uganda, inflation as measured by the Consumer Price Index for the 12 months to August 2022 was 9.0 percent (Uganda Bureau of Statistics).