As per the Uganda budget 2011-12 presented by Maria Kiwanuka, the Finance and Economic Development minister, the rates of kerosene taxes have been reduced. This, though, has not matched public expectations of more tax deductions.
Uganda Budget 2011-12: Highlights
Kiwanuka feels that the new budget will provide some much needed relief for majority of the Ugandan families.
The prices of kerosene have been increasing of late and this has led the Finance and Economic Development minister to do away with the excise duty imposed on kerosene. She has stated that this will result in revenue loss amounting to approximately 12 billion Ugandan shillings.
In 2011-12, VAT will be removed from ambulances.
This is expected to make it easier for patients to be taken to hospitals or other healthcare facilities.
The 2011-12 budget will focus on areas such as energy and transport infrastructure besides increasing employment opportunities and developing the skill sets of the local professionals.
The budget will also aim to improve the quality of service delivery across the country.
Another area of focus for the 2011-12 budget is to create the perfect environment for business organizations. The administration will also explore several options to improve the efficiency of the governance systems.
The present government has accepted that peace, political stability and security are important in order to achieve socio-economic progress. National and regional stability will also play important parts in the promotion of trade and greater amount of economic operations across the region.
The 2011-12 budget will also aim at providing top priority to the core programs these initiatives are the basis of Ugandan economy and are expected to sustain it in the long run. The administration will focus on creating the ideal strategies to make sure that these programs are effectively implemented.
Uganda Budget 2011-12: Reception
The opposition has criticized the 2011-12 Uganda budget strongly. It has stated that this budget is not very helpful when it comes to bringing down the high rates of inflation in the country.
They feel that the budget should have reduced the tax rates on diesel and petroleum products, which are the major components of the national economy.
Uganda Economy: Important Sectors
The services sector is the major driving force of the Ugandan economy and is expected to make significant contributions to growth in the upcoming fiscal. This sector comprises important domains such as trade, telecommunication, education and financial services. The commendable performance of these sectors, especially telecommunications, trade and finance has helped the services do well.
The telecommunications industry of Uganda has been growing at the quickest rate of all the local sub-sectors. The financial services sector has performed well too. The increasing levels of competition among the service providers in these domains have contributed to their present condition. The prices in these sectors are pretty low and there has been regular innovation, which has consistently brought new products to the market.
Uganda has seen substantial price increases especially in case of food crops and Electricity, Fuel and Utilities or EFU goods and services. The yearly non-food inflation rates have gone up significantly as well and this has restricted food supply to some extent.