The document is a presentation by the Director of Budget at the Ministry of Finance, Planning and Economic Development on the budget strategy for financial year 2015/16. It outlines the framework, key priorities and macroeconomic assumptions. The priorities include facilitating private sector growth, infrastructure development, revenue mobilization, and improving social services and public sector management. It addresses concerns from civil society organizations regarding resource allocation and other issues.

1. BUDGET STRATEGY
FINANCIAL YEAR 2015/16
PRESENTATION ON THE BY
DIRECTOR BUDGET
MINISTRY OF FINANCE, PLANNING AND ECONOMIC
DEVELOPMENT
AT
THE CIVIL SOCIETY PRE-BUDGET PUBLIC
DIALOGUE
15H
APRIL, 2015

2. Outline
 Introduction;
 Framework for the Budget Strategy for FY
2015/16;
 Brief Highlight of the Budget Strategy for the FY
2015/16;
 Civil Society Concerns;
 Conclusion
Pre Budget Dialogue for FY 2015/16 2

3. FRAMEWORK FOR FY 2015/16
BUDGET STRATEGY
Pre Budget Dialogue for FY 2015/16 3
 Issues emerging out of Implementation of the first National
Development Plan (NP1);
 Facilitating implementation of the Second NDP-2 and NRM
Manifesto;
 Taking into account the Rebasing of the Economy;
 Findings for the National Population and Housing Census;
 2016 Elections Roadmap

4. FRAMEWORK FOR FY 2015/16 BUDGET
STRATEGY
Proposed theme for the financial Year
2015/16 Budget is ‘Maintaining
Infrastructure Investment and Promoting
Excellence in Public Service Provision’. .
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5. Table 1: Key Macroeconomic Performance and
Assumptions for FY 2013/14-FY 2016/17
Pre Budget Dialogue for FY 2015/16 5
2013/14
Outturn
2014/15
Proj.
2015/16
Proj.
Real GDP Growth 4.5% 5.3% 5.5%
Average Annual Headline Inflation 6.7% 3.1% 5.5%
Fiscal Deficit (% of GDP), excl. grants 5.1% 8.5% 7.9%
Tax Revenue (% of GDP) 11.4 12.7% 13.2%
Reserves Cover (months of imports) 4.8 3.9 3.9
Trade Deficit (% of GDP), goods and services 11.3% 10.7% 11.1%

6. SECTOR PRIORITIES FOR FY 2015/16
• Facilitating Private Sector Enterprise for
increased Investment, Employment and
Economic Growth;
• Effective delivery of Infrastructure Development
and Maintenance;
• Commercializing Production and Productivity in
Primary Growth Sectors;Pre Budget Dialogue for FY 2015/16 6

7. SECTOR PRIORITIES FOR FY 2015/16
• Enhancing Capacity for Increased Domestic
Revenue Mobilization;
• Increasing Social Service Delivery; and
• Enhancing Efficiency in Government
Management
Pre Budget Dialogue for FY 2015/16 7

8. Facilitating Private Sector Enterprise for Increased
Investment, Employment and Economic Growth
• Sound macroeconomic management,
• promotion of direct and portfolio foreign direct
investment,
• ensuring debt sustainability and maintaining of
sufficient level of foreign reserves at least five
months import cover to adequately buffer
external shocks.Pre Budget Dialogue for FY 2015/16 8

9. Facilitating Private Sector Enterprise for Increased
Investment, Employment and Economic Growth
• Support developing technical expertise and
entrepreneurship,
• financial deepening through pensions and capital market
development,
• increasing availability of long term capital for private
sector financing, and promoting the development ofPre Budget Dialogue for FY 2015/16 9

10. Facilitating Private Sector Enterprise for Increased
Investment, Employment and Economic Growth
• strengthening the institutional framework for business
and land registration, and investment promotion,
• enhance technical and entrepreneurial know-how
through small business incubation, and access venture
capital, promotion of financial partnerships for long-
term viable projects,Pre Budget Dialogue for FY 2015/16 10

11. Facilitating Private Sector Enterprise for Increased
Investment, Employment and Economic Growth
• reduce the burden of meeting regulatory requirements
for starting a business including expedition of business
licensing reform and enhancing efficiency of the judiciary
to reduce commercial case backlog by introducing new
technology, making procedures faster, including
instating smalls claims procedures.,Pre Budget Dialogue for FY 2015/16 11

12. Enhancing Capacity for increased Domestic
Revenue Mobilization
• expansion of the tax base, reforming the structure of
taxation and improve efficiency in tax collection and
compliance.
• Completion of the National Identification Project,
• linking Business Registration databases to Uganda
Revenue Authority and linking Local Governments to
trade registration to Uganda Revenue Authority.
Pre Budget Dialogue for FY 2015/16 12

13. Enhancing Capacity for increased Domestic
Revenue Mobilization
• Further review and revision of NTR rates
• Ensuring that all NTR is appropriated by
Parliament before utilization and collected
through the Consolidated Fund
Pre Budget Dialogue for FY 2015/16 13

14. Commercializing Production through Productivity
Enhancement and Value Addition
• Agriculture:
– implementation of the Single Spine Agricultural
Extension Scheme,
– Continued provision of improved agricultural
technologies and inputs;
– Supporting agricultural research and development,
Pre Budget Dialogue for FY 2015/16 14

15. Commercializing Production through Productivity
Enhancement and Value Addition
• Agriculture:
– Promotion of investment in agricultural infrastructure
including and agricultural equipment
– Agricultural financing,
– processing and value addition for agricultural
produce; and Development of markets and other
Pre Budget Dialogue for FY 2015/16 15

16. Commercializing Production through Productivity
Enhancement and Value Addition
• Tourism Development:
– Tourism promotion,
– training,
– regulation and maintenance of the sector activities at
internationally acceptable standards and
development of strategic tourism infrastructure in
partnership with the Private Sector.
Pre Budget Dialogue for FY 2015/16 16

17. Accelerating Infrastructure
Development and Maintenance
Road Transport
 Accelerating the construction and completion of on-
going road projects;
 maintenance of the national, district, urban,
community access road networks and numerous
Pre Budget Dialogue for FY 2015/16 17

18. Accelerating Infrastructure
Development and Maintenance
• Water Transport:
– Continue to improve the regional and inland water
system mainly through procurement of ferry services;
– Improving the safety and quality of the water transport
system in partnership with the private sector.
Pre Budget Dialogue for FY 2015/16 18

19. Accelerating Infrastructure
Development and Maintenance
• Air Transport:
– facilitate the on-going interventions for improving the
quality of air transport through maintenance and
operations at Entebbe International Airport and other
Air transport facilities across the country; and
– Fast tracking the development of an airport at
Kabaale (Hoima).
Pre Budget Dialogue for FY 2015/16 19

20. Accelerating Infrastructure
Development and Maintenance
• Railway Transport;
–Fast-tracking the process of
developing the Standard Gauge
Railway network.
Pre Budget Dialogue for FY 2015/16 20

21. Accelerating Infrastructure
Development and Maintenance
 Electricity
 Accelerate the construction of Karuma Hydropower
Project (600MW); Isimba hydro power project
(183MW), other mini-hydro power projects;
 Continued construction of transmission lines under
the Rural Electrification Programme.Pre Budget Dialogue for FY 2015/16 21

22. Accelerating Infrastructure
Development and Maintenance
Oil and Gas Sub-Sector
– Continued exploration of oil and other valuable
minerals,
– development of the Oil Refinery and the Malaba-
Kampala, Eldoret-Kampala and Kampala-Kigali
petroleum products pipelines,
– construction of Nakasongola Fuel reserves, among
Pre Budget Dialogue for FY 2015/16 22

23. Accelerating Infrastructure Development
and Maintenance
Science, Technology and Innovation for
Industrialisation and Private Sector Competitiveness.
 promotion of e-Government
 finalization of the legal and policy framework with emphasis on
the National ICT Policy and other ICT sector policies as detailed
out in the National Budget Framework Paper
Pre Budget Dialogue for FY 2015/16 23

24. Enhancing Public Social Service Delivery
Education and skills development
– Increase facilitation of the UPE, USE and UPOLET
programmes by increasing funding to the Capitation
and School Facilities Grants;
– Continue with the procurement and distribution of
instruction materials and teaching aids;
– Improving the quality and equipping of education
infrastructure
Pre Budget Dialogue for FY 2015/16 24

25. Enhancing Public Social Service Delivery
Education and skills development
– Enhancing vocational and skills development by
strengthening Skilling Uganda Project,
– supporting digital and science and staffing of the
newly constructed technical schools;
– Strengthening the Student Loan Scheme to increase
access to tertiary education with emphasis on the
critical skills;
Pre Budget Dialogue for FY 2015/16 25

26. Enhancing Public Social Service Delivery
Education and skills development
– Improving staff welfare through salary enhancement
to reach the 50% salary enhancement agreed
between Government and UNATU;
– Further support to the Teachers SACCO.
– Strengthen the monitoring and supervision system at
school/institutional level and regular cleaning of the
payroll.
Pre Budget Dialogue for FY 2015/16 26

27. Enhancing Public Social Service Delivery
Health
– Construction, expansion and further rehabilitation,
equipping and staffing of the national, referral,
general and lower level health facilities.
– Enhancement of health awareness campaigns
including the anti-malarial programme;
– Address the staffing gaps through recruitment of
additional health workers with emphasis on the
Pre Budget Dialogue for FY 2015/16 27

28. Enhancing Public Social Service Delivery
Health
– Improving staff welfare through further provision of
facilities such as staff houses, electricity, water and
sanitation and payment of hard to reach among other
allowances.
– Continued procurement and distribution of essential
health kits such as mama kits, specialized equipment
and improve the management of the referral and
Pre Budget Dialogue for FY 2015/16 28

29. Sector Priorities for FY 2013/14
Health
– Strengthening the reproductive health activities,
mentoring of long term family planning methods and
conducting independent maternal death audits
countrywide;
– Improve timeliness, comprehensiveness and composition
in the supply and delivery of essential of drugs and
medicines;
– as well as monitoring and supervision at service delivery
level.
Pre Budget Dialogue for FY 2015/16 29

30. Enhancing Public Social Service
Delivery
Water and Sanitation
Continue to rehabilitate and expand both urban and
rural water and sanitation facilities;
Strengthening coordination and implementation of
sanitation programmes, expansion of hygiene
education programmes;
development and rehabilitation of various Gravity
Flow Schemes; Pre Budget Dialogue for FY 2015/16 30

31. Enhancing Public Social Service
Delivery
Water and Sanitation
completing the on-going construction and
rehabilitation of dams
environmental protection awareness
campaigns such as tree planting, gazetting and
protection of critical ecosystems
Pre Budget Dialogue for FY 2015/16 31

32. Enhancing Public Social Service
Delivery
Gender and Youth Empowerment and Social
Protection
Strengthen the on-going interventions targeted at the
Youths, Women, Elderly, Disabled and other
vulnerable groups. These include the Youth Livelihood
Programme (YLP), Youth Venture Capital Fund, the
Social Assistance Grant for Empowerment (SAGE).
Pre Budget Dialogue for FY 2015/16 32

33. Improving Public Sector Management and
Overall Service Delivery
• Improving coordination in implementation
Government programmes/projects,;
• Enhanced monitoring at facility levels and
enforcement of performance standards;
• Promotion of e-Government and Information
Technology in dissemination of information of
the budget informationPre Budget Dialogue for FY 2015/16 33

34. Improving Public Sector Management and
Overall Service Delivery
• Elimination of Salary, Pensions, Gratuity and all
other forms of arrears;
• Cause the investigation of all ineligible
expenditure;
• Strengthen Public Investment Management
through project preparation, appraisal,
monitoring and evaluation;Pre Budget Dialogue for FY 2015/16 34

35. Improving Public Sector Management and
Overall Service Delivery
• Address human resource gaps through
recruitment and filling of critical posts especially
in local governments,
• Continuous payroll cleaning and management
• Full decentralization of Pension and Gratuity;
• Review the procurement rules and enhancement
of contract management;Pre Budget Dialogue for FY 2015/16 35

36. Improving Public Sector Management and
Overall Service Delivery
• Ensuring timeliness, increase comprehensiveness
and composition in the supply of drugs,
medicines and instructional materials at
education and health facilities for enhanced
service delivery.
Pre Budget Dialogue for FY 2015/16 36

37. Addressing CSBAG Concerns
• Macroeconomic Management
– Sound Macroeconomic stability remains the cornerstone for
Uganda’s economic growth and development.
– That is why, the budget strategy for the FY 2015/16
emphasizes;
• Achieve and maintain a rate of real economic growth of at least 6% per
annum;
• Maintain annual inflation within single digits;
• Maintain foreign exchange reserves cover of at least the equivalent of
4.5 months of imports of goods and services;
• Maintain a real exchange rate compatible with a competitive external
sector.
Pre Budget Dialogue for FY 2015/16 37

38. Addressing CSBAG Concerns
• Sectoral Resource Allocation
– Allocation of resources is not a matter of percentages
but is driven by the major expenditure drivers derived
from the broad national priorities of the NDP;
– Sectoral resource allocations must be within the
overall macroeconomic revenue and expenditure
framework as well as the Budget Strategy agreed with
all stakeholders.
Pre Budget Dialogue for FY 2015/16 38

39. Addressing CSBAG Concerns
• Sectoral Resource Allocation
– Reductions in sectoral allocation can be attributed to
a number of factors ranging from other emerging
expenditure pressures such as the need to finance
the election roadmap, completion of some of the
previously ongoing projects and inter-sectoral
reallocations to finance other more pressing
priorities.
Pre Budget Dialogue for FY 2015/16 39

40. Addressing CSBAG Concerns
• Sectoral Resource Allocation
– Sectors and Spending Agencies are expected to
ensure efficiency in allocation and utilization of the
available resources with emphasis on the critical
service delivery areas;
– Thus, the proposals by CSBAG to increase resource
allocations to various sectors should be put within
the context of the available resources.Pre Budget Dialogue for FY 2015/16 40

41. Addressing CSBAG Concerns
• Sectoral Resource Allocation
Pre Budget Dialogue for FY 2015/16 41

42. Addressing CSBAG Concerns
• Domestic Revenue Performance.
– Government welcomes proposals for domestic
revenue mobilisation.
– The proposed interventions for enhancement of
domestic revenue mobilization are well articulated in
the budget strategy for the FY 2015/16;
– Specific tax and non-tax revenue measures for the FY
2015/16 have also been presented in Parliament.Pre Budget Dialogue for FY 2015/16 42

43. Addressing CSBAG Concerns
• Appointment of Accounting Officers
– As one of the measures to addressing the challenge of
financial mismanagement, the names of officers proposed
for appointment as Accounting Officers, have been
forwarded to the Auditor General for vetting.
– Thus, effective FY 2015/16, appointment of Accounting
Officers will be based on recommendations of the Auditor
General;
Pre Budget Dialogue for FY 2015/16 43

44. Public Expenditure Management
• The new Public Finance Management Act 2015 will
greatly strengthen the entire PEM system including
streamlining the process of accessing supplementary
funding, strengthen accountability in the use of public
resources and also strengthen the oversight role of the
legislature in the entire budgeting process.
• Government appreciates the support of the CSBAG
during the process of formulating and enactment this
Pre Budget Dialogue for FY 2015/16 44

45. Public Expenditure Management (PEM)
• The MoFPED is also working closely with other
stakeholders to implement several other PEF reforms
aimed at improving the budgeting process. These
include full implementation of performance based
budgeting, budget transparency initiatives
• The National Budget Framework Paper recently laid in
Parliament also details out several other measures for
strengthening Public Expenditure Management.Pre Budget Dialogue for FY 2015/16 45

46. Corruption and Theft of Public Resources
• The Budget Strategy for the FY 2014/15 clearly
acknowledged corruption and abuse of public resources
as one of the challenges to service delivery;
• Government will continue to strengthen financial
management systems and the various anti-corruption
agencies to tackle this problem.
• However, fighting corruption is more complex than
merely talking about it.
• It requires concerted efforts by all stakeholders including
the civil society;
• We shall continue to implement transparency measures
including the publication of resources released to MDAs.Pre Budget Dialogue for FY 2015/16 46

47. Gender and Equity Budgeting
• This remains one of the weak areas of the budget.
• The Social Development Sector needs to develop clear
outputs, guidelines and performance indicators to
ensure proper engendering of the budget.
• We also need the support of the Civil Society on how
best sector budgets can address gender gaps in
service delivery.
Pre Budget Dialogue for FY 2015/16 47

48. CONCLUSION
• Government appreciates and considers the Civil Society
as a key stakeholder in public service delivery;
• The budget for the FY 2015/16 presented in Parliament
took into account the input of all stakeholders including
CSBAG;
• It is however imperative that CSBAG enhances its
involvement in the implementation of the budget to
monitor the utilization of resources and delivery of
Pre Budget Dialogue for FY 2015/16 48

49. END
THANK YOU FOR
LISTENING
Pre Budget Dialogue for FY 2015/16 49