Revenue shortfall of up to UGX52 Billion registered in November 2021

There was a revenue shortfall of 52.18 billion Shillings registered by Government in the month of November against its target for the month, the Ministry of Finance monthly report on the performance of the economy released on Monday indicates.

Revenue shortfall of up to UGX52 Billion registered in November 2021
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There was a revenue shortfall of 52.18 billion Shillings registered by Government in the month of November against its target for the month, the Ministry of Finance monthly report on the performance of the economy released on Monday indicates.

Through the Uganda Revenue Authority –URA, Government set a target to collect UGX1.74 trillion in November 2021 but domestic revenue collections for the month amounted to 1.688 trillion Shillings hence a shortfall.

“Domestic revenue collections were below target partly due to delays and difficulties in implementation of the new tax measures like the Electronic Fiscal Receipting and Invoicing System -EFRIS and the digital tracking system,” reads the report.

The Ministry of Finance in October also reported a shortfall in domestic revenue collections noting that URA had collected only 1.538 trillion, representing an 88.6 percent performance against the target for the month. 

Then, the Ministry attributed the shortfall to underperformance of all major tax heads and non-tax revenue categories mainly due to the negative impact of the Covid-19 pandemic on the economy.

The new report further reveals that in November 2021, government operations  resulted in an overall fiscal deficit of 724.46 billion Shillings which was higher than the planned deficit of 654 billion as domestic revenues were lower than anticipated.

The Ministry says that government expenditure in November, 2021 amounted to 2.497 trillion, against 2.568 trillion planned for the month.

“The lower than planned spending was mainly on account of lower spending on externally financed projects recorded during the month,” the report further reads.

In regard to the performance of the financial sector, the Ministry of Finance reports that the Ugandan Shilling strengthened against the US Dollar by 0.8 percent in November 2021, registering an average mid-rate of  UGX3551.5 for 1US Dollars.

“Steady dollar inflows from offshore investors and NGO’s during the month outmatched the limited corporate demand thus appreciating the Shilling,” reads part of the report.

The report also reveals that government raised a total of 846.8 billion Shillings from three auctions of treasury instruments held in November 2021. Of the total amount raised, 493.49 billion was used to refinance maturing securities while 353.31 billion was used for financing other items in the government budget, according to the Ministry of Finance.

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