Minister Musasizi: Uganda Must Finance Its Own Transformation, Not Relying on Borrowing and Donors

Hon Henry Musasizi / Courtesy Photo

By Wilfred Arinda Nshekantebirwe 

The Minister of Finance, Planning and Economic Development, Hon. Henry Musasizi, has said Uganda must increasingly finance its own development if it is to achieve its target of growing into a USD 500 billion economy in the next 15 years.

He made the remarks today while addressing the URA Engagement with Committees of Parliament under the theme “Domestic Revenue Mobilization for Uganda’s Economic Independence and Fiscal Self-Reliance“.

Hon. Musasizi, said the meeting was not just about taxes or URA collections, but about Uganda’s fiscal self-reliance and economic independence.

“The Committees of Parliament represented here have mandates that collectively support our fiscal and economic management. It is therefore appropriate that we meet to discuss one of the most important questions facing our country today, namely: How do we sustainably finance Uganda’s development using our own resources?” he said.

The Minister noted that under the Tenfold Growth Strategy, government has set an ambitious agenda anchored on four priority areas of Agro-Industrialisation, Tourism Development, Minerals including Oil and Gas, and Science, Technology and Innovation including ICT and Creative Industry.

He said achieving this ambition requires massive investment in infrastructure, energy, education, healthcare, water, security and industrial development.

“We cannot build a USD 500 billion economy on borrowed resources. Neither can we expect development partners to finance our transformation indefinitely. Ultimately, Ugandans must increasingly finance Uganda’s development through their own economic activity,” Hon. Musasizi emphasized.

On revenue leakages, the Minister said there is a significant gap between what Uganda can mobilize and what is actually collected, driven by non-compliance, under-declaration, smuggling, undervaluation and aggressive tax avoidance.

“Before asking compliant taxpayers to pay more, we must first ask: Is everyone who should be paying actually paying? Are taxpayers declaring the correct amounts?” he questioned.

He revealed that he has tasked URA to invest in intelligence, sector analysis, third-party information, risk profiling and better use of Government data.

“Our objective should be simple: make it easier to comply and progressively more difficult to evade,” he said.

The engagement was organized by URA led by the Commissioner General John Musinguzi Rujoki and brought together Chairpersons and Members of Parliament from committees that support fiscal and economic management.

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