Over Estimation of Revenue Targets Has Led to Shortage Of Funds
The Permanent Secretary and Secretary to the Treasury, Keith Muhakanizi, has conceded that over estimation of revenue targets has led to a shortage of funds for government expenditure.
Muhakanizi has warned that government may not be able to fund a significant portion of gov't expenditure during the next quarter as a result of revenue shortfalls.
This predicament he says will be exa-cerbated by crises and disasters like the locust invasion, washed away roads and the corona virus threat.
He has predicted a total revenue shortfall of 1.8tn by the end of the financial year, as a result of over estimating this revenue from Uganda Revenue Authority.
The shortfalls by the end of last year had amounted to 670bn shs.
Muhakanizi was responding to outstanding issues raised by MPs on the Public Accounts Committee C regarding treasury operations.
Muhakanizi has accepted partial blame since URA is usually capable of collecting 0.5% - 0.6% of GDP, but this was pushed up to 1.2% this financial year, well knowing that URA was incapable of mobilizing this revenue.
Muhakanizi did not shy away from blaming Parliament for the shortfalls, by stating that some revenue sources were removed by Parliament, while the implementation of a few others was delayed.
This appeared to be a reference to the mobile money tax that caused a nationwide uproar forcing Parliament to revise this tax downwards.