Prioritise domestic revenue mobilisation to curb external borrowing, ICPAU boss urges gov’t
ENTEBBE – The government has been tasked to boost domestic revenue mobisilisation as one way of curbing external borrowing which has hindered the faster development of the country.
While speaking at the opening ceremony of the 11th CPA Economic Forum in Entebbe on Wednesday, the President of Institute of Certified Public Accountants of Uganda [ICPAU], Josephine Okui Okwakol Ossiya noted if there was a proper strategy for domestic revenue mobilisation, more revenue would be collected internally to fund government development programmes as well as reduce the public debt which currently stands at Shs 88.9 trillion.
“This is the time government and all key players should embark on domestic revenue mobilisation to enable Uganda’s economic development most especially the SGDs and Vision 2040,” Ossiya who was recently reappointed to sit on the board of Bank of Uganda, said.
Further, participants at the Forum were concerned that out of the 52.7trn budget for the financial year 2023/ 2024, Shs 17trn, which represents 32.3 percent of the budget, is earmarked for debt repayment, which is more than the combined allocation to ministries of Defence, Health, Education and Sports, Energy and Mineral Development, Works and Transport, and Agriculture.
“Uganda’s increasing public debt may not only plunge the country into a debt trap but also directly affects the economic opportunities available to every Ugandan, for instance, if high levels of debt out crowd the private sector, workers would have less money to use in their businesses, which would translate to lower productivity and therefore, lower wages and low demand for quality goods and services,” says Elizabeth Nuwaha, Research Fellow Research Fellow, Center for Budget & Economic Governance, ACODE, in her paper, “A Snapshot Of Uganda’s Debt Profile And Its Implications On Economic Growth”.
The forum hosted by ICAPU, running from July 19-21, 20223, is being conducted under the theme “National Priorities for Socio-Economic Development,” aligning with Uganda’s third National Development Plan (NDP III) and its Vision 2040, aimed at transforming the nation into a modern and prosperous country within the next three decades.
The forum, introduced in 2012, has served as a pivotal platform for dialogue on national economic matters, enabling accountants to actively participate in the formulation of Uganda’s economic policies. Over the years, the forum has provided valuable recommendations to the government, with ten sets of policy recommendations already forwarded.
The forum fosters multidisciplinary collaboration, attracting a diverse range of professionals, including tax consultants, economists, policymakers, entrepreneurs, investment experts, government officials, and development enthusiasts.
The selected discussion areas include: Cooperative Societies as a driver for socio-economic transformation, role of security in nation building, empowering Communities through Agricultural value addition, labour exports;socio-economic benefits and challenges.
Other topics for discussion at the Forum are: Education Sector: Reforms in curriculum, Uganda’s oil and gas sector, value chain for public value, hospitality, tourism management, and marketing, and industrialisation as a driver for self-reliance
By focusing on these topics, the CPA Economic forum aims to actively contribute to the ongoing efforts of transforming Uganda into a modern and prosperous nation.
CPA Derick Nkajja, the Secretary/CEO of ICPAU, highlighted the significance of the chosen theme, stating, “In selecting the theme, our aim is to contribute towards the ongoing efforts to transform Uganda into a modern and prosperous country.”
The resolutions derived from the discussions at the forum will be submitted to the Ministry of Finance, Planning, and Economic Development. This initiative ensures that accountants’ valuable contributions shape the country’s economic growth and influence the government’s budgeting process on an annual basis.
Speaking at the same event, government chief whip, Hamson Obua urged public accountants to stick to their rules and regulations.
“By the time these accountants took on the profession, they understood the integrities within it, so, going against them, will be a breach of their code of conduct,” he said.
He further asked the public accountants to stick to their principles, not forgetting the formal registration through their mother body, which is regulated by the government.
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