Following the budget reading for financial year 2022/23 no new taxes was introduced for the first time in years as sectors such as security, health, and transport scooped major allocations.
This Shs 48.13 trillion 2022/23 National budget was presented on Tuesday, June 14, 2022was by the Minister of Finance, Planning, and Economic Development Hon Matia Kasaija at Kololo ceremonial grounds in Kampala under a theme of Full Monetisation of Ugandas Economy through Commercial Agriculture, Industrialisation, Expanding and Broadening Services, Digital Transformation and Market.
The government expects to generate up to 30.8 trillion of this money locally, of which 23.75 trillion is expected from tax collections. Externally, the finance minister said sh6.7 trillion, of which sh4.6trillion will be from loans and the rest from grants Access in the Sh 48 trillion budget.
Kasaija, the finance minister revealed that the government will achieve revenue targets by improving the efficiency in tax collection and enhancing compliance to tax laws further emphasizing that the capacity of the Uganda Revenue Authority (URA) will be enhanced by recruiting and training staff and deploying appropriate equipment and ICT to enforce tax laws.
I wish to report that Parliament has made amendments to the various tax laws intended to simplify, clarify previously ambiguous provisions and close loopholes that may lead to revenue leakage. The amendments that have been made are in the Income Tax Act, Value Added Tax, the Stamp Duty Act and the Tax Procedures Act, he said.
Security earned up to Sh3.9 trillion towards the improvement of security infrastructure in the country through securing national borders, purchase of CCTV cameras, pacifying the Karamoja sub region among others and this is among the biggest shares heightened in the 2022/23 budget.
Sh1.059 trillion was allocated toward the implementation of the Parish Development Model and this money will go directly to the lower local governments to support households efforts to graduate from subsistence to commercial farming.
According to the minister, each one of the 10594 parishes in the country will get a revolving fund of Shs 100 million to fund the purchase of agricultural inputs by households still in subsistence.
The Transport Sector has been allocated Shs 4.3 Trillion and this money will be going into the construction of 400km of new roads, 30 bridges as well as the rehabilitation of 900 km district roads and 162 local government roads.
The education sector has been allocated Shs 4.14 trillion as the Ministry of Health is taking Shs 3.722 trillion.