Financial experts and stakeholders have expressed dissatisfaction with the budget allocation as read by the Minister of Finance Matia Kasaija on Thursday June 8th.
They argued that the majority Ugandans were not catered for and will continue to live in poverty.
The finance experts who included bankers, there economists, this site businessmen among others converged at the Stanbic Bank Budget dinner held on Thursday evening to review the real impact of the projected budget on the economy of the country.
Uthman Mayaja, cialis 40mg a banker and a businessman said over the years, development projects that have been funded by these budgets have failed to show real impact on the common Ugandan especially the peasants who are the majority.
Mayaja noted that these Ugandans continue to live in poverty with no money to spend hence the declining economy because there is no money in people’s pockets to facilitate trade.
He said; “As much as infrastructure is a big necessity in the development of the economy, it is useless to continue financing infrastructure yet it is not facilitating or benefiting the citizens.”
“Spending billions of cash on a road when there is no real trade taking place on it is a wasted resource. There is no financial inclusion in Uganda. With the read budget, money will continue to flow between a few privileged individuals but in the long run, they will run out because if there is no movement of money in the economy, trade collapses.”
Mayanja said it is important to start including every one by opening institutions that can provide financial services at limited rates so that the common people can easily access them.
He noted that there is no real impact from Operation Wealth Creation because the government is not planning well for the small farmers.
“Giving seedlings to farmers who are unable to irrigate their farms incase the rains are irregular or treat their crops in case of diseases is almost like wasting those seedlings. It’s important to make sure that the farmers to whom you are supplying these seedlings have the capacity to plant and harvest these crops which only be done if they have access to finances as well as subsidized agriculture services,” he said.
Kagwa Moses, an official from the Ministry of Finance said the ministry will make sure that the borrowing rates go down by reducing on domestic borrowing hence reducing the competition with individual borrowers.
He arevealed that they are working on improving production by focusing on irrigation to fight the climate change challenges.
“We are currently targeting 11-12 million bags of coffee for exportation instead of the 4-5 million bags that we are currently exporting. This will be done by modernizing farming,” he said.
“We also want to encourage our producers to focus on branding and packing because we are losing money on exporting raw precuts instead of finished products,” Kagwa added.
He observed that “we are losing half a dollar on each coffee that we export to Kenya because of packing and branding. Government is committed to making the economy work but we need everyone’s input as well.”
MTN Uganda CEO, Wim Vanhelleputte said that the only way to make financial inclusion possible is by cashless digital economy through electronic mobile money trading and electronic banking.