UGANDA, Kampala | Real Muloodi News | The Ugandan government spent more money than planned in July, according to the Ministry of Finance’s Performance of The Economy report. The government spent 2.6 trillion shillings, which was 103 per cent of the planned budget.
The analysis said that this resulted from non-recurrent expenditure coupled with the cost of meeting health sector requirements brought about by the COVID-19 pandemic.
Uganda was placed on national lockdown in July to curb the rise in cases of COVID-19, which was in its second wave of infections.
The Ugandan government spent one hundred and eighty-eight billion shillings supporting the health sector, which incurred extra expenditure requirements during the month in question.
These requirements included the provision of cash relief to vulnerable persons during the lockdown. Prime Minister Robinah Nabanja, on July 7th, kicked off a project to provide poor and vulnerable Ugandans with 100,000 shillings each to support them in buying food and other necessities for the duration of the lockdown.
Also budgeted and spent were four hundred and nine billion shillings used to purchase the Ministry of Defense equipment. The government spent 110 billion on buying cars for Members of Parliament.
Direct domestic tax collection was higher than planned, amounting to 36.29 billion shillings, because direct domestic tax and Pay As You Earn came in higher than planned, bringing in 36.29 billion shillings.
In July, 1.384 trillion shillings came in as government revenue, which is 90.6 per cent of expected revenue. Tax revenues amounted to 1.3 billion shillings, and non-tax revenues made up the 39.6 billion shillings balance.
Indirect domestic tax, including Value Added Tax on sugar and beer, brought in 81.7 p
er cent because, the analysis says, consumers reduced their use of these items during the lockdown.
Development expenditure was 96 per cent lower because disbursements for externally financed projects were 23.1 per cent below the target.
Meanwhile, development spending on domestically financed targets came to double the targeted amount, at 803.32 billion shillings.
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