The Independent Uganda: You get the Truth we Pay the Price
The Uganda Revenue Authority (URA) has recorded a shortfall of Shs 240bn in the first three quarters of FY 2016/2017 amidst a tough economic environment.
As a sign of the times, the International Monetary Fund (IMF) this week revised GDP growth for Uganda for FY2016/17 to 3.5% from government projections of 4.5%·
Addressing the media on Wednesday at URA headquarters, Commissioner General Doris Akol said because of a bad economy “we may fall short of the target.” (see stats below)
Akol said drought that hit agriculture sector, constrained demand and a hostile external market for Uganda were reasons among others that are behind the shortfall.
Shs 9.2 trillion has been collected, instead of Shs 9.4 trillion, in the first 9 months (3 quarters of FY2016/17)
However, in the month of March 2017 alone, Akol said, they collected Shs 1 trillion, representing a surplus of Shs 5.4bn and a growth of 13% compared to March 2016.
She said the collections so far indicate they will close in on their annual target of Shs 13.1 trillion at the end of next month.
“We have also tightened revenue leakage points and introduced new systems and procedures, enhancing revenue efficiency,” Akol told the press at URA’s Nakawa headquarters.
I think it is worse, because apparently the government must be printing money, in order to make up for the shortfall. This is because last week, I was shocked to see stacks and stacks of sealed crispy new bank notes, in the denominations of Shs.1,000; 2,000 and 5,000, being openly vended by money changers at the Old Taxi Park. I couldn’t believe my eyes. I thought I was back in the 80’s, at the Border Posts in Malaba and Busia.
It is another reminder of the state of economy in Zimbabwe, when almost everything started a free fall under Mugabe. Suddenly Bob’s desperate government went on the rampage printing money like there is no tomorrow.
In Africa, the litmus test of an economy is usually the prices of essential commodities like sugar. E.g. the current skyrocketing price of sugar is signaling an economic melt down.