Free Access | 2024-04-12

Challenges of Mobilising Resources to Finance Uganda’s National Development Plan (NDP)

Authors/Editors: Corti Paul Lakuma ,  Musa Lwanga

Abstract:

A fall of global commodity prices and the resultant lower export revenues, reduction in donor financing and the increased expenditure on infrastructure have expanded the budget deficit in Uganda. In addition, the debt market is becoming increasingly costly. Interest payment on both domestic and foreign debt are projected to reach 12 percent of total public expenditures in 2017. This calls for alternative modes of revenue mobilisation. As such, Public Private Partnership (PPPs), improving efficiency in resource utilization, taxing growth sectors such as agriculture and mining, improving VAT collection and implementing policy changes to accommodate temporary macroeconomics shocks will be imperative to both mobilizing resources and financing projects planned under the National Development Plan (NDP).