This archive report was first published on 16 June 2020.
On June 11, 2020, Uganda's Minister of Finance, Matia Kasaija, presented a Sh1.3 trillion budget to Parliament, aiming to revive the country's economy after facing shocks from the Covid-19 pandemic, flooding, and desert locusts.
The budget, themed 'Stimulating the Economy to Safeguard Livelihoods, Jobs, Businesses, and Industrial Recovery,' reflects a Sh138 billion increase from the previous year.
Minister Kasaija stated that 56.2% of the budget funding would come from domestic resources, while the rest would come from local and foreign borrowing, as well as appropriation in budget aid.
The government has introduced a stimulus package to help small, medium, and large enterprises withstand the effects of the pandemic. Enterprises will be allowed to delay payment of corporation tax or presumptive tax due between April and June 2020.
For hard-hit sectors like tourism, manufacturing, and horticulture, payment can be deferred until September 2020. The government has also introduced low-interest loans through the Uganda Development Bank for investors in the manufacturing sector and commercial agriculture.
Minister Kasaija emphasized the importance of import substitution, citing the scarcity of goods created by the pandemic as an opportunity to empower local manufacturers. He announced a 60% increase in import duty on agricultural products and a 35% increase on others to boost consumption of locally made products.
