President calls for efforts to promote the investors and consumers.

Thursday 14th June 2012

President Yoweri Museveni has said that the most crucial players in the building and strengthening of the national economy are the investors and consumers.“Investors and consumers have to be treated well if we are to survive in the modern world. It is, therefore, the duty of the government to ensure security of investors and consumers”, the President said.Mr. Museveni was this afternoon speaking at the presentation of theNational budget for the financial year 2012/2013 that was presented by the Minister of Finance, Planning and Economic Development, Hon. Maria Kiwanuka. The theme of the new financial budget is “Priorities for Renewed Economic Growth and Development”.

The President told the nation that in spite of a bad economic trend on the international scene, Uganda has recorded a growth rate of 3.2%. He, however, noted that this is one of the lowest growth rates in the last 25 years and attributed it to the global problems on the one hand and “our own mistakes within Uganda, on the other hand”.

Noting that the economies in Europe and the USA are in trouble with failed banks, high level of indebtedness and high unemployment rates, leading to a 4% decline in the domestic demand in the EU in 2009, Uganda’s exports to the region increased from US$ 873million in 2009 to US$ 1,170million in 2012. He added that the country would have recorded a better performance if all the actors in Uganda were conscious of the consumers and investors.

President Museveni announced that he is to revive the Presidential Economic Council whose task is to harmonize economic issues and said Mr. Stephen Muyingo, his Senior Private Secretary in Charge of Economic Affairs, will be the Secretary to the Council. He said that this is all aimed at “eliminating once and for all the arrogance of the civil servants when they are designing policies.”

In her presentation of the 2012/2013 budget proposals to the country Finance Minister Maria Kiwanuka said the country will need Shs. 11,157 billion in the new financial year adding that the Government will realize 75% of the funds from local resources and with the 25% balance from the development partners.  She said that the Government is promoting the critical productive sectors and revealed that among the roads whose construction is to commence, are the Kampala-Entebbe expressway and the Kyenjojo- Hoima- Masindi –Kigumba road. She added that the Kampala- Kasese railway route is to be improved.

On the issue of electricity, she revealed that the construction of the 600 Megawatt Karuma hydro power station is to commence.

Regarding the issue of government workers remuneration, the Minister said an additional Shs. 290 billion towards the salaries of teachers, scientists and other public servants. She also announced that the NRM Government will fund the rehabilitation of Mulago Hospital as well as the construction of Kawempe and Kirudu Hospitals.

Minister Kiwanuka said that the Pay As You Earn (PAYE) threshold is to be increased from the current sh130,000/ to sh235,000/= and that the 18% V.A.T. on piped water is being reinstatement.


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