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Archive for the tag “BOU”

Uganda: Civil Society Position on Tax Revenue Measures for FY 2017/18 (21.04.2017)

Report from the MoFPED shows the growing Ugandan debt by June 2016!

Again, the Ministry of Finance, Planning and Economic Development (MoFPED) dropped another report on the fiscal policies and the fiscal health of the economy in Uganda. The National Resistance Movement (NRM) have created this environment as the growing debt and growing interest payment comes with their planned debt rise. Still, the PriceWaterhouseCoopers spelled gloom earlier in the year, as this report was dropped on the MoFPED web page today. Even if the Report was spelled out in December 2016. It is if like the NRM didn’t want this to spelled out early. Since the numbers aren’t compelling of an arts piece, more issues… just take a look!

The stock of total public debt grew from US$ 7.2 billion at the end of June 2015 to US$ 8.4 billion in June 2016. This represents an increase from 30.6% of GDP to 33.8% over the two periods. The increase was largely on account of external debt, which grew from US$ 4.4 billion to US$ 5.2 billion over the period. Domestic debt increased from US$ 2.8 billion to US$ 3.2 billion” (MoFPED, P:V, 2016).

That the debt are growing quick, as the public debt grew with US$ 1.2 billion, that the percentage of GDP went up with 3,2%, the external debt rose with US$ 0.8 billion and the Domestic debt went up US$ 0.4 billion. All of these numbers show the amount of monies that the Government are adding on their debt, as the UNRA and the development projects are suspended by World Bank. So the Infrastructure development can be questioned as the growing debt, as the government must have other uses of the growing and scaled up debt. Since the transparency of the economy isn’t there and that the sanctioned bills comes from the State House. Just look at the growing interest rates as well.

Interest Payment as a percentage of GDP stood at 2.2% as at end June 2016, up from 1.9% as at June 2015. The increase is largely explained by interest payments on domestic debt, which grew from Shs 1,077 billion in FY2014/15 to 1,470 billion in FY2015/16. There was a significant increase in the weighted average interest rate of Government debt; from 5.9% to 6.5% in June 2015/16. This followed increases in the weighted interest rates for both domestic and external debt, from 13.6% to 15.3% for domestic debt and from 0.9% to 1.2% external debt. As interest rates increase, so do the debt service obligations of Government” (MoFPED, P: 4, 2016).

The difference between June 2015 and June 2016 the percentage has grown with 0.3%, the domestic interest rate grew with Shs. 0.393 billion. The Interest rate alone went up by percentage 0.6%, as the weighted interest rates went up 1.7%. The key sentence that the report wrote and I repeat: “As interest rates increase, so do the debt service obligations of Government”.

That idea isn’t only on the interest payment percentages are running higher, but as the debt goes up, the interests goes up. So the Debt Service Obligations are going up for the Government. This is a natural outcome, that the obligations for the state goes up with the amount of debt it rises. So the government can try to portray this is controlled, and to one extent it is under control. Still, the growth in this regard proves that the NRM regime are pilling up debt and increasing their debt, as well as interests. In the end this will make the state worse. Especially knowing that the energy dams have been built poorly and many of the expensive roads haven been fruitful. This is development that the growing debt is being used to…

So the NRM regime and the Ugandan government isn’t believable… the rise of debt and interests show’s the current state of affairs. Even if the percentage is after plan, the government still has to take charge and make sure they can pay back both the debt and interests. Peace.

Reference:

Ministry of Finance, Planning and Economic Development (MoFPED) – ‘DEBT SUSTAINABILITY

ANALYSIS REPORT 2015/16’

The NRM Regime have during the FY2015/2016 fallen behind on paying out UGX 2.7 trillion!

Today I am dropping numbers that are devastating, as the numbers of debt that the National Resistance Movement (NRM) isn’t paying, show’s sufficient motives for malpractice when it comes to budgeting and the structure of payments. There are certainly not enough transparency and clear audit of the state reserves, as the State is misusing seriously amount of funds. The NRM Regime and their President should be ashamed by their record.

Emmanuel Katongole is the Head Information Technology in the Ministry of Finance, Planning and Economic Development (MoFPED) in Uganda on the 12th April 2017, he dropped a document on their web-page that show’s the domestic arrears of the Republic of Uganda in the last Financial Year.

If you wonder what Domestic Arrears means: “The amount by which a government has fallen behind in its payment of interest and principal on debt to lenders within its own country” (Encyclo.co.uk). So Katongole will literately show how bad the National Resistance Movement is on paying their bills and expenditure. All the sums of this report is in Ugandan Shillings (UGX).

Like under the Office of the President and the Internal Security Organisation (ISO) who itself leaves arrears in the margin of 3.8bn shillings and 8bn shillings in other payable arrears. That one part of the budget and current audit of the Office of the President as the total of verified arrears at June 2016 was 37bn shillings alone. So the Office of the President owes a lot of funds that it hasn’t paid, not only for the ISO!

The State House by the verified arrears at June 2016 was 1bn shillings. What is more unsettling is that the Pensions and Gratitude for Veterans are the sum of 183bn shillings, Survivors 315bn shillings, EXGRATIA 10bn and UNLA 26bn shillings. The Ministry of Defense by June 2016 verified arrears was 718bn shillings! So the MoD are a lax payer of their expenses and expenditure.

Ministry of Justice and Constitutional Affairs owes verified arrears by June 2016 the amount of 684bn. Shillings Court Awards unpaid by the Ministry is 203bn shillings. The Electoral Commission has growing verified arrears by June 2016 because of Unsettled penal insterest for URA in the total sum of 3.2bn shillings. Uganda National Roads Authority (UNRA) has by June 2016 billed up verified arrears by 283bn shillings.

This is just some of the government that has not paid their dues and their expenses, their salaries or pensions, even their lacking covering of funds to pay debt, either internal or external. So the National Resistance Movement are clearly running an economy and fiscal policy that isn’t healthy for the republic.

Just to drop the total sum that the Government of Uganda has failed to pay or failed payments on their debt are by June 2016 the total of 2.7 Trillions of Uganda Shillings! Which is an insane number and amount of misspent monies by the state. The strategy by the Republic to fail so miserably cannot be sustainable, as the invoices and the target to pay their debt should be the most important. Still, the NRM doesn’t seem to think so. They are surely missing steps to having a sound economy when the verified arrears are hitting 2.7 trillions by June 2016. So the Financial Year of 2015/2016, the Ugandan government failed to serve out over 2 trillion of their needed expenses!

What is troubling that the year before, the total state had not paid on their debt and failing expenses in the Financial Year of 2014/2015 as by June 2015 we’re totally 1.389 or close to 1.4 Trillion shillings. So the miss-match between FY2014/2015 and FY 2015/2016 are 1.3 Trillion shillings. So the clear picture is that the Election Year for the NRM is very, very expensive.

Just think about that… eat the bill and pound on the amount of lost monies in the system. Peace.

 

Uganda: CSBAG – “Reducing Wastage and Curbing Inefficiences to Finance our Priorities for the FY 2017/2018 (09.04.2017)

President Museveni sanctions now all information on emergencies from the State House!

If you ever needed proof that the departments, ministries and institutions don’t have values in Uganda, than you need the newest revelation. President Yoweri Kaguta Museveni of the National Resistance Movement (NRM), who has run the nation for over three decades. This is proven with the Presidential Handshakes, the growing amounts of MP’s, Ministers and of newly created districts and sub-counties. That sort of government both state-wise and locally has grown out of proportions, this to make it possible to have enough cronies close by and hire them. The government has been built around President Museveni, still he has to control it even more. Take a look!

President Museveni has ordered ministries to stop declaring state of emergencies without his prior approval of their messages to the public. He accused government officials of using loose words which have ended up scaring away potential investors and tourists. President Museveni voiced his concerns in a letter he wrote to the Vice President and copied to all permanent secretaries of all ministries on January 20, this year” (Ahimbisibwe, 2017).

So the controlling behavior of President Museveni, now is to another level since he cannot even trust that the message spread by his ministers are sound enough. He is now controlling the releases of information and vouch for the ones spread from the NRM. The Government is so controlled by him, that it all has to pass by him. Because his rubber-stamp has now to be on the messages.

That the President needs clearance and cannot trust in his ministers, not the agencies or state institutions, proves the lack of transparency, as even the messages has to pass by him before the public gets to know. If it is first in emergencies, than it will on the Presidents desk and he will rewrite it, so that it fits his understanding of it. So if it needs to be addressed as enclave, a colonial relic or even if it is climate change, the President has to speak his peace.

That the Police Force, the Army or any of the ministers can address the matters first in public, to regain trust or even try to amend in the emergency that arrived. That the President shouldn’t have the capacity to control each and every single message the government spreads out. Surely, the President cannot have capacity to follow Hon. Frank Tumbewaze or Uganda Media Centre Chairman Ofwono Opondo’s remarks on the matters. As much as the President cannot have the time or the ability to understand the different events that occur in the Republic.

This here proves that President Museveni only trust himself and no-one else, all his vision has to be spread and people have to believe him. President Museveni wants to control it all and not give way, it is all him and his behavior. Not like Museveni wants to trust anyone. They are only around for Presidential Handshake’s and Brown Envelopes, that is because they follow his system. They know if they stay around and needs it, he will help them out and also create needed jobs for the closest associates.

President Museveni proves with this what we have known for long, that the institutions and the ministries is shell-organizations for the supposed operations of the state. Museveni has to be informed and engaged before actions happens. If it doesn’t happen that way, it is the wrong way and his feels betrayed by his own. Therefore, the ones that falls stopped informing and being independent of their master. Which is Museveni, who feels he is more important than the institutions. Museveni thinks he is the pillar of the State and the key to all the works of the State.

That is why the newest order of controlling information and the flow of information to the public, the enforcement of this proves the systematic control that he has from the Okello House. This proves how belittling the state is and how important the President thinks of himself. The way the State is now his playground and no-one else can play like he do. Peace.

Reference:

Ahimbisibwe, Patience – ‘Museveni set to vet government messages’ (04.04.2017) link: http://mobile.monitor.co.ug/News/Museveni-set-vet-government-messages/2466686-3876432-format-xhtml-5i5i9oz/index.html

Uganda: UPC Calls for Economic Reforms (05.04.2017)

Bank of Uganda: Change in Signature on Uganda Shilling Banknotes (17.02.2017)

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Bank of Uganda: Monetary Policy Statement for February 2017 (15.02.2016)

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PwC report spells gloom over rising debt in Uganda!

Ugandan shillings

A report released by PricewaterhouseCoopers limited has delivered this month is clearly seeing what others has seen with the economic situation and the use of funds by the National Resistance Movement (NRM) and their regime. This report by a company which is an international company who works with other businesses and civil society organizations who needs economic advice and advisory services for taxes and such; therefore the report from PwC on economic situation is telling. Their speciality on their outlook will be saying with auditors and financial analyst whose words means a lot. They are professional analysts in this field are writing and saying this on the economic climate. The Economic climate is worrying and that has been visible. The liability of the growing debt in the republic has been a hazard together with the lacking internal revenue for the state as well. Just take a look!

Sluggish economy with higher debt:

“This bulletin comes at a very crucial time for the Uganda economy when growth is slowing down, private sector credit is on a decline, consumer demand is low, implementation and execution of critical public infrastructure projects is very sluggish, and the public sector debt burden on the economy is at the highest it has ever been” (PwC, P: 3, 2017). “If the domestic revenues collections continue to underperform, the government will be forced to borrow more from the domestic market. The increase in government borrowing may result in a substantial increase in yields on government securities, which may result in an increase in borrowing rates, which may constrain the private sector credit growth even further” (PwC, P: 7, 2017).

Growing debt:

“The Uganda’s public debt burden has risen by 12.7% in the past four years from 25.9% of GDP in FY 2012/13, to 38.6% of GDP in FY 2016/17. The debt burden is projected to continue rising to 45% of GDP by 2020. Debt as a percentage of revenues has risen by 54% since 2012 and is expected to exceed 250% by 2018. The country’s ever increasing debt burden has resulted in a deterioration of the debt affordability situation” (PwC, P: 8, 2017). “Uganda’s capital expenditures are still too reliant on external finance. Currently debt servicing constitutes 11% of the total government expenditure, one of the highest debt burdens in sub-Saharan Africa. This is expected to increase to 16% of the total government expenditure by 2018. Uganda’s debt burden has risen faster than the government’s own resources, resulting in a debt-to-revenue ratio of 236%, one of the highest amongst B-rated countries. This has prompted Moody’s recent down grade of Uganda’s long-term bond rating by one notch to B2 from B1” (PwC, P: 8, 2017).

An Economy with challenges:

“2016 was an economically difficult year for Uganda. The economy faced numerous challenges due to the continued uncertainty surrounding the recovery in global economic growth, weak commodity prices and geopolitical events in our key trading partners. As a result, of these numerous challenges, our export earnings, FDI flows and remittances to Uganda all went down. These developments, together with a slowdown in the execution of public investment projects and weaker than expected private sector demand, had a major effect on the economy” (…) “Other internal risks include delays in the implementation of public infrastructure projects such as the Standard Gauge Railway (SGR) linking Uganda to its East African neighbours, and the key infrastructure projects critical for the commencement of oil production” (PwC, P: 4-5, 2017).

If you are worried by the Republic and their economy after this, than you haven’t followed the class since this signs have been there for while! The state of the economy is fragile and the debt rise should concern all the ones inside the Republic and also outside. However, this could change, but that has to be done by the government and steer in another direction as today. The greed and the common sense of developing the economy is forgotten, as they are fixated on infrastructure projects and oil developments, while borrowing to fill the losses of donor-aid and internal revenue. This could be done in many ways, but that would not be easy. Peace.

Reference:

PricewaterhouseCoopers Limited (PwC) – ‘Uganda Economic Outlook 2017’ (February 2017)

Opinion: Mzee shows hypocrisy, one day speaking ill of it and the next day doing it!

m7-06-02-2017

Tarehe Sita 36th Celebration Day in Apac

The man behind the Presidential Handshake, President Yoweri Kaguta Museveni has outdone himself today, as the report of that his people shouldn’t be begging for money. Well, every time he travels with his liaisons and cronies he brings brown envelopes to dole around. Therefore it is refreshing to read this from the man who is the walking ATM. The man who buys loyalty has a problem that people begs him and his government for money. This is the same government that allocates and spends monies without any proof of where it was used. Just take a look!

President Museveni said on last Thursday:

“People should get out of poverty through labour but not begging. You cannot get out of chan (poverty) through kwayo (begging),” (…) “There is a cancer called Leukemia. Now when your body cannot make its own remo (blood), you depend on blood transfusion. They put in blood, after two weeks it is finished; they put in more blood, it is finished [again]. How can you go on like that?” (…) “So when you want to fight poverty through begging, it’s not a good idea. In fact when you try to get out of poverty through begging you spread poverty. Even the one who gives you also becomes poor” (Oketch, 2017).

Well, President Museveni knows his bit of poverty and how he earned his fortune. He got it through a rebellion and coup d’état against ruling regime. Since then he has ruled and made ways for himself to profit on the state coffers. The added debt on the state over the years and the donors leaving, therefore he suddenly doesn’t want the Republic to beg. Still, he walks with brown-envelope and gives them to the ones he sees fit. Then you shouldn’t wonder why the inflation and BoU has to borrow funds to keep up with the spending of the State House.

So the begging comes from Museveni’s own actions and how his government has operated over time, over three decades. Therefore, inevitably the public would be sucked into the ways as they see and follow the procedure, even if it isn’t written in stone. The Government has created their own monster. Today on the Tarehe Sita 36th Celebration Day in Apac at the Boma Grounds, the President gave another brown envelope of unknown value to the Apac Church of Uganda Mothers Union.

If Museveni was wanting to stop the begging culture, maybe there would be procedures and through meaningful ways of governance, where the applications and the filing through needed ministry and funds would have given Apac Church of Uganda Mothers Union could have gotten Membership support through a Ministry who has sufficient programs to deliver it through. Instead, it is all on the mercy of President and when he visits in goodwill. That is not building resilient and institutional practice to end begging.

So if Mzee want to stop begging for real and wants change, he has to steer the wind and use the wind so he knows where the winds blow. Instead he is a tornado who drops money where ever he turns and nobody can control that. Peace.

Reference:

Oketch, Bill – ‘President warns against begging’ (06.02.2017) link: http://www.monitor.co.ug/News/National/President-warns-against-begging/688334-3801038-m4e4ewz/index.html

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