Africa-Press – Uganda. We could increase Uganda’s domestic revenues through traffic fines that are managed under URA and not police.
The month of May (budget month) is always important in the lifecycle of the Uganda budget, in respect to budget accountability of the previous and current resources, state of revenue collections, citizens’ interaction with officials of some ministries, departments and agencies plus their interaction with civil society actors, academia and media practitioners.
Thanks to central government officials, but the gesture to Ugandans needs to have a replica at the over 140 Local governments and municipalities from the forthcoming Financial Year (FY).
From the budget month, we have since established that Uganda’s economy grew by a paltry 3.1 per cent in FY 2019/20; not too far away from the current FY 2020/21. This is on account of pre-Covid-19 existing economic conditions like constrained balance of payments, low quality coffee and maize products, locusts (real or perceived). Certainly Covid-19 made Uganda’s as well as global economy fragile and there is a symbiotic relationship (though tilted against African economies). Such economic contractions have placed Uganda’s state of economy to an expanding fiscal deficit of over Shs 1 trillion every quarter in current FY 2021/21, which cascades into expanded current account deficit and runway debt acquisition.
The country’s fiscal deficit over three quarters (between July 2020 and March 2021) was Shs9.1 trillion.
This led to financing part of the gap through domestic borrowing that was already approximately 67 per cent of Uganda’s total financing.
This equation increases interest payments that have a significant drain on the country’s domestic resources envelope.
It should concern all wananchi that for instance, the net tax collections over three quarters (between July 2020 and March 2021) were Shs1.78 trillion short of the Shs16.1 trillion target.
In the same period, government actual expenditure was Shs23.0 trillion, short of planned Shs26.6 trillion. This then undercuts our financial leverage to our development pathways, say District Development Plans, National Development Plan and NRM manifesto.
How then do we reverse the revenue shortfalls to meet Uganda’s fiscal operations? While the hard-working and sober Gen Katumba Wamala briefed the media as part of the 6th UN Global Road Safety Week, also as minister for Works and Transport in Uganda, observed the level of flouting traffic rules, shamelessly even by ministers and other government officials who should be the first custodians of the rule of law on the road. Wanaichi have since been recruited and followed suit. The police accident reports under the Directorate of Traffic and Road Safety attest to Gen Katumba’s concern. About Shs1trillion annually can be collected over two years if the revenue function (fines) is exclusively handled by URA rather than the Police
Since the express penalty scheme started around 2004, police has not regularly accounted to citizens how much has been quarterly collected towards offsetting road traffic offenders).
So, let the now more trusted URA Commissioner undertake an efficient and accountable collection under the scheme. Amend the traffic law, that those who misuse the sirens are captured in this net, with hefty fines across the board, as we get a financial dividend and sobriety on roads now and over the medium term.
We can surely reduce the scale of unwarranted deaths on our roads (an issue that globally mirrors on the country and restraints foreign direct investment and tourists choices as Uganda).
This move under Uganda’s broader domestic revenue strategy will contribute a brick to reversing our country’s fiscal deficit, spending constraints and debt burden.
Julius Kapwepwe Mishambi is the coordinator
East African Budget Network.
