Wednesday, June 27, 2012

Maternal health drug misses in health facilities

By Esther Nakkazi

A life saving drug for women with obstetric and gynecologic complications, Misoprostol, is about to expire in Uganda government stores, which will undo the gains in maternal health achieved so far.

Although, Uganda’s maternal mortality statistics had over a decade gone down from 435 to 310 deaths per 100,000 live births, health officials are afraid that minus Misoprostol, more deaths due to unsafe abortion may occur. In Uganda, unsafe abortions account for 26 percent of maternal mortality, although these are completely preventable.

Misoprostol, a safe technology, has been approved by the World Health Organisation for use in Post Abortion Care (PAC) and is being promoted by the Uganda Ministry of Health.

But at Mulago, the biggest referral hospital in the country and in a number of health facilities except health centre IIIs, there is a shortage of Misoprostol. “We have not been getting Misoprostol for sometime now at Mulago and we are wondering why, said Dr. Charles Kiggundu a consultant gynecologist and obstetrician with Mulago Hospital.

Kiggundu also the vice president of the Association of Obstetricians and Gynecologists of Uganda (AOGU) said, “our interest in this drug is because it stops women from excessive bleeding, which is the most common cause of maternal deaths. When administered it causes the uterus to contract and stops blood loss.”

An official from the National Medical Stores (NMS) who did not want to be named said they have enough stocks of Misoprostol to supply all health facilities but under the pull system, which is user-driven, district health officials have to requisition for it.

Misoprostol, therefore, can now only be found in Health Centre IIIs because they use the push system, which is Ministry of Health driven, where the drugs are supplied irrespective of the need.

Independent analysts said NMS now being profit- driven does not pay a lot of attention to Misoprostol because it is a government drug and has no benefits. It costs only Ushs.300 ($0.1) in public and 15,000 ($6) in private health facilities. 

Health care providers in Uganda administer Misoprostol in high risk pregnancies like for women who birth twins, triplets, more than five pregnancies, those who go through long and obstructed labor as well as women under going surgery.

But recently, they have realized that all women who deliver potentially need Misoprostol including those in the low risk group said Kiggundu. Low risk in this case refers to women having the first baby and those having normal labor.

This, thus, means all the 2 million women who get pregnant in Uganda annually are potential users of Misoprostol, which is now about to expire in government stores. Misoprostrol is also cheap, safe, private, efficient, painless, easy to transport, store and administer even by non-health workers with training, which helps ease up professional health workers time, a much needed resource in poor settings. 

Health officials attending a national conference on unsafe abortion in Kampala last week expressed anger about the absence of Misoprostol in the various health facilities even as women continue to be rushed to them for post abortion care after carrying out unsafe abortions. Abortions are restricted in Uganda and only permitted to save a woman’s life.

Uganda’s abortion rate is among the highest in the world at 54 abortions per 1000 women and its estimated that 26 percent of maternal mortality result from unsafe abortions.

In a 2005 World Health Organization survey, it was estimated that 300,000 abortions occur per year in Uganda. But nearly 85,000 women are treated for complications- most of these are incomplete abortions where the uterus continues to bleed until medical care is sought.

In such circumstances, Misoprostol comes in handy, and it has been demonstrated that if taken orally, only 3 tablets, it can reduce on the bleeding or remove the products of the uterus. It could also be used in early pregnancy termination of abnormal fetus or to save the mother. 

Dr. Collins Tusungwire a senior medical officer with the Ministry of Health said they have taken a number of steps to address the issue of unsafe abortion using Misoprostol. In collaboration with PACE Uganda, in 2011 the ministry got the drug registered for all gynecological indications in Uganda.

It was also put in Mama kits – an all-in-one package that contains everything needed to help provide a clean and safe delivery-but it was withdrawn because women used to use it and not go to health facilities.

Dr. Dorothy Balaba, an official from PACE Uganda said they have increasing accessibility and availability of Misoprostol in the private sector, trained over 2,000 health workers on its use and worked to integrate it in post abortion care services.

As Hillary Clinton, US Secretary of State 2009 observed in 2009, “You cannot have maternal health without reproductive health. And reproductive health includes contraception and family planning and access to legal, safe abortion.”


Sunday, June 17, 2012


Uganda Budget 2012 By Maria Kiwanuka- Minister of Finance

1. Madam Speaker, in fulfillment of Article 155(1) of the Constitution, I beg 
to move that Parliament resolves itself into a Committee of Supply for 
consideration of: 
i. The Revised Revenue and Expenditure Estimates for the 
Financial Year 2011/2012 and  
ii. Proposals for the Estimates of Revenue and Expenditure for 
the Financial Year 2012/2013. 
2. Madam Speaker, Article 155(1) of the Constitution provides that the 
President shall cause to be prepared and laid before Parliament 
estimates of revenue and expenditure for each financial year. I am 
accordingly performing this duty on behalf of the President, for which I 
am thankful.  
3. Madam Speaker the Budget Act 2001 requires that the national budget is 
prepared following comprehensive consultations with all stakeholders 
which obligation, I have fulfilled. 
4. Madam Speaker, in the State of the Nation Address a week ago, His 
Excellency the President discussed the National Resistance Movement 
Government’s vision for the future of this country and clearly laid out the 
challenges to development we face today. In addressing these challenges 
and in support of His Excellency the President’s vision, the theme for the 
budget for next financial year is “Priorities for Renewed Economic 
Growth and Development”.  
5. Madam Speaker, last October, I stood before this august House and 
asked for your support as we tackled the challenges facing us. I wish to 
thank you, and the people of Uganda, for the support Government 
received when we had to implement strict measures to combat a series of 
economic shocks. These strict measures included both tightening fiscal 
and monetary policy. I am happy to report that inflation is easing and the 
exchange rate of the Uganda Shilling has stabilised. 
Economic Performance 
6. Madam Speaker, the key macroeconomic and sector developments over 
the last year are elaborated in the Background to the Budget 2012/13. I 
will therefore first highlight the performance of the economy over the last 
year. This serves as a backdrop to the key challenges, Budget strategy 
and priorities for renewed growth and economic development in the next 
financial year. Fiscal policy will support monetary policy to maintain 
macroeconomic stability, while at the same time increase resources 
available to address the binding constraints to growth.  

Economic Growth 
7. Madam Speaker, Uganda has faced both global and domestic economic 
challenges over the past year. Real GDP growth is estimated at 3.2% this 
financial year. However, there are signs that the economy is turning 
around, but requires addressing the challenges on the supply side of the 
economy. This involves budget prioritization, improving value for money, 
and better coordination across sectors. Given Uganda’s population 
growth of 3.5% per annum, it is imperative that we quickly return to 
faster, more inclusive and sustainable economic growth.  
8. The slowdown in growth this financial year was due to drought, weaker 
demand of our exports, high international fuel prices, and imported 
inflation coupled with the weak shilling due to a strong dollar globally. 
Growth in the services sector slowed to 3.1%, with trade, financial, 
education and health services sector registering negative annual growth 
rates. The growth in industrial production slowed to 1.1% during the 
year. The hardest hit industrial sub-sector was formal manufacturing 
sub sector, where growth contracted by 4.4%.   
9. Madam Speaker, I am happy to report that the agricultural sector has 
performed much better, recording annual growth of 3.0%. This shows 
that agriculture can perform well given our climatic advantage. The 
performance of the Agricultural sector has been spurred by cash and 
food crop production following favourable rains in the first planting 
season of the last year. The hotel and restaurant sub sector also 
rebounded, coupled with positive growth rates in transport and 
telecommunications, real estate activities and other business activities, 
as His Excellency the President highlighted in the State of Nation 
External Sector Developments 
10. Madam Speaker, the Uganda Shilling depreciated against major 
international currencies earlier in the financial year now ending. The 
Uganda Shilling has recently been more stable. Depreciation of the 
shilling was a consequence of the widening balance of trade as imports 
continued to grow much faster than exports. Export of goods and 
services during the year totaled US$ 4.1 billion, compared to imports of 
goods which amounted to US$ 5.31 billion. In addition, Services 
payments were recorded at US$ 2.23 billion. However, the overall 
balance of payments was positive, on account of increased inflows of 
remittances amounting to US$ 2 billion, foreign direct investments 
amounting US$ 834 million, and portfolio flows amounting to US$ 274 
11. We must therefore continue to concentrate on export growth in order to 
reduce the gap between imports and exports which has been widening 
over the past years. This will entail increased production and exports of 
staple food to the region, and by shifting expenditures from imports to 
locally manufactured goods where this is feasible. Staple food exports 
have a sure regional market given high elasticity of demand and have 
lower transport costs in view of our neighbour’s proximity.  
Inflation and Interest Rates 
12. Madam Speaker, the economy has faced high inflation with prices rising 
over the early part of the financial year now ending. However, inflation 
has receded. Annual inflation peaked at 30.5% in October 2011 but has 
declined to 18.6 in May 2012. Food crop inflation that was 42.2% in May 
2011 has declined to 8%in May 2012.In order to achieve this, the Bank of Uganda had to pursue a tight monetary policy using the Central Bank 
Rate that led to a rise in interest rates. The Central Bank Rate will be 
eased as conditions improve. Tight monetary policy has succeeded in 
bringing down the price level and has restored macroeconomic stability. 
Supply side (or fiscal policy) and demand management (or monetary 
policy) policies are not alternatives; they complement each other and 
both are necessary for sound economic management. Tackling inflation 
remains Government’s overriding macroeconomic objective in order to 
protect macroeconomic stability. 
Financial Sector Developments 
13. Madam Speaker, new technology is driving our efforts to improve 
financial inclusion, especially in the area of electronic money transfer 
and agency banking. The necessary amendment to financial sector 
legislation to accommodate alternative banking approaches such as 
mobile banking, bank assurance, and Islamic Banking are being 
undertaken. The Bank of Uganda has licensed four Mobile Money 
network operators to offer mobile money services, as a means of bringing 
about greater financial inclusion with the move towards branchless 
banking. By February 2012, the operators had registered 2 million 
mobile money clients and 13.2 million transactions worth Shs.551.0 
billion had been processed between January and March 2012. In 
addition, Consumer Protection Guidelines were issued by the Bank of 
Uganda and are now part of the regulatory regime of all financial 
14. A significant development in financial inclusion in 2011 was a 60% 
increase in agricultural lending by commercial banks and other financial 
institutions. This lending was towards financing post-harvest activity and 
the purchase of equipment using the Agricultural Credit Facility. 
Government will continue to implement positive interventions to increase 
Agriculture lending through the banking system including the Uganda 
Development Bank.  
15. Madam Speaker, Government has undertaken reform of the pensions 
sector with the view to increasing private savings which can be leveraged 
to finance domestic investment on a sustainable basis. In this regard, 
legislation to provide oversight and regulation of the pension sector 
became effective on September 2011. The Retirement Benefits Regulatory 
Authority will be established in the next financial year. Pension reform 
when completed will be a key element in the development of our domestic 
debt market. 
Fiscal Developments  
16. Madam Speaker, as a result of lower economic growth, domestic 
revenues performed below target over the year, growing by 17.9% 
compared to the 21.6% growth recorded in the previous year. Total 
expenditure releases during the financial year were Shs137billion below 
the target of Shs. 9,869 billion, mainly because of delayed start to the 
construction of Karuma Hydro power station. 
Economic Outlook 
17. Madam Speaker, the outlook for the Uganda economy must take into 
account the risks faced by the global economy.  The Euro Zone is 
projected to enter a mild recession, while the United States economy has 
not yet shown signs of a return to robust economic growth. We must also 
be aware of the creeping exposure to global shocks arising from greater 
integration, which occurs through financial linkages, export receipts and 
workers remittances. 
Contrary to arguments that the country is disadvantaged by being land- 
locked, Uganda is actually land-linked with her neighbours who are 
providing significant demand for our products especially food. For 
Uganda to succeed in this global and regional economic environment, we 
must seize the opportunities which these challenges present and 
implement programs that will spur growth; accelerate social 
transformation; and ensure prosperity for all, within the context of East 
African Community integration. 

19. Madam Speaker, the Budget strategy underpinning next financial year’s 
proposals will focus Government’s scarce resources to unlock the most 
binding constraints to help restore faster economic growth, while 
promoting inclusion and sustainability. The budget proposals presents 
emerging thinking on our macroeconomic and sector challenges, drawing 
on ideas, feedback and observations from all walks of society and 
stakeholder consultations held throughout the past year. The proposals 
envisage that Government will focus its resources to improve Uganda’s 
business climate and its comparative advantage of a conducive 
agricultural climate, land linked location in the middle of East Africa and 
a young adaptable workforce, so as to truly undergo a structural change 
for economic transformation. Such a process has many challenges and 
needs unstinting policy support from across the entire Government and 
the Ugandan people. 
Macroeconomic Objectives  
20. Madam Speaker, the global, regional and domestic economic slow-down 
has constrained economic growth this year and affected macro-economic 
stability. It is urgent that the economy reverts to a more positive growth rate. Achieving this turnaround will require overcoming formidable 
challenges to share more equitably and sustainably. The budget strategy 
for Financial Year 2012/13 has been designed to renew economic growth 
to enable sustained and inclusive development. 
21. The macroeconomic objectives of Government are therefore as follows:- 
i. achieve a growth rate of at least 7% per annum in the 
medium term;  
ii. the return to single digit inflation rates; 
iii. improve Uganda’s Balance of Payments by reducing the 
current account deficit. 
22. Madam Speaker, Government recognizes that its own resources are 
limited and that the private sector is the principal partner in economic 
growth. Therefore, Government will leverage its resources to support 
private sector growth and development by lowering the cost of doing 
business in Uganda. Government will invest in infrastructure that 
unlocks the growth and development potential of the private sector. It 
will improve skills for competitiveness and ensure training matches 
requirements of the job market. 
23. Madam Speaker, by virtue of its geographical location and favorable 
climate, Uganda is capable of becoming the food basket and distribution 
hub of the region. This will require the diversification of our markets, in 
particular to increase inter-regional trade with our neighbours. We will 
therefore concentrate on producing for food security and exporting staple 
crops which have a sure market. This approach will benefit from cheaper 
transport. The budget strategy will therefore prioritize the removal of 
weaknesses that obstruct growth in the productive sectors and hinder 
the implementation of critical infrastructure. This strategy will maximize 
the economy’s growth potential. 
Madam Speaker, the four main strategies to lower the costs of doing 
business and marshal private sector investment in Uganda are:- 
i. Rehabilitation and expansion of road and electricity infrastructure to 
reduce transport costs and improve access to affordable energy to 
support the private sector as an engine of growth. 
ii. Research and Development to improve productivity, such as 
developing improved seeds and other inputs, provision of extension 
services in the field, and skilling our workforce to operate agro- 
processing industries e.g mechanics, electricians, machine 
operators, carpenters, plumbers, e.t.c. 
iii. Improving business efficiency by streamlining regulatory rules and 
business licensing reform. 
25. Madam Speaker, in implementing the Budget strategy Government will 
ask the following key benchmark questions when making any investment 
decisions and prioritizing support activities:- 
i. Does the investment increase infrastructure stock? 
ii. Does the investment add value to the product or process?  
iii. Does the investment lower the cost of doing business? And if so by 
how much.  
26. I must reiterate that this focus on areas of Government comparative 
advantage emphasizes selectivity and not neglect of other sectors, that is 
“the greatest sustainable good for the greatest inclusive number”. 
27. Before I elaborate the priority interventions reinforcing the budget 
strategy for the Financial Year 2012/13, I will first outline the financing 
strategy that underpins the interventions I will propose later on. 
 Financing Strategy  

28. Madam Speaker, the interventions I am proposing today will be financed 
using the following strategy. 
i. Increased Revenue Mobilization from Domestic Sources 
ii. External Financing in form of Loans and Grants from 
development partners and private creditors 
iii. Public Private partnerships that mobilize private sector financing 
for public projects 
29. Madam Speaker, tax policy will be used to promote investment in the 
economy to enable recovery. Domestic revenues are likely to be affected 
by a number of opportunities and challenges, including development of 
the oil and gas sector, return to a conducive macroeconomic environment 
as Uganda returns to faster economic growth, and the integration of the 
East African Community. Government will maximize Non-Tax Revenues 
and improve tax administration at the Uganda Revenue Authority (URA) 
in order to ensure that Uganda is fully prepared to benefit from 
opportunities, such as development of the oil and gas sector and the 
integration of the East African Community. 
30. Madam Speaker, I propose to mobilize Grants and Loans amounting to 
Shs. 2,679billion, which represents 25% of the National Budget, and 
consists of project and budget support loans. Resources will be allocated 
towards counterpart financing of infrastructure projects and the 
improvement of service delivery. In addition, Government will borrow 
non-concessional loans to undertake major infrastructure projects that 
demonstrate the necessary commercial and economic benefits, for which 
other financing options are not available. 
31. Starting next financial year, Government will speed up project 
implementation and ensure that undisbursed borrowed funds will be 
utilized faster. Government will provide counterpart funding to unlock 
loan disbursements and will seek technical assistance where necessary.  
For future projects, the Ministry of Finance, Planning and Economic 
Development will undertake rigorous economic analysis and review the 
Public Investment Plan to ensure alignment with the National 
Development Plan. In addition, selected projects will have to be in line 
with national objectives and have satisfactory cost benefit analysis 
32. Madam Speaker, Government will implement the Public Private 
Partnership Policy which entails a streamlined framework for project 
appraisal and contracting with the private sector to achieve efficient and 
faster development and public infrastructure. The Public-Private 
Partnerships Bill will be presented to Parliament in the next financial 
year and I seek your support for its enactment. 
Debt Sustainability 
33. Madam Speaker, Uganda’s public debt is sustainable in both the 
medium and long term. The bulk of Uganda’s external debt portfolio has 
been contracted on concessional terms with a repayment period of 40-50 
years, a grace period of at least 5 years, and interest rates of not more 
than 0.75% per annum. 
34. Given that our investment programs require more resources that we can 
raise domestically, it is feasible to borrow externally and prudently on 
favourable terms. Next financial year, Government will implement a 
policy that uses contractor facilitated financing as a means of raising 
resources for infrastructure projects. Guidelines will be issued to 
operationalize this policy. However, these borrowed resources must be 
utilised to boost productive capacity of the economy to increase 
competitiveness. This will enable our economy to generate the necessary
resources to service debt sustainably over the long term. To achieve this 
objective, Government will focus on improving efficiency in the use of 
public funds and ensure value-for-money for all Government spending. 

Resource Framework for FY 2012/13 
35. Madam Speaker, the total amount of resources available in financial year 
2012/13 is estimated at Shs11,157 billion.  Domestically mobilised 
resources, including tax collections and domestic borrowing will finance 
about 75% of the budget during 2012/13, whilst 25% will be provided by 
development partners. This represents a rise in domestic financing of our 
budget. Revenue collections for next financial year are projected at 
Shs7,251 billion.  Total debt service including interest payments are 
projected to amount to Shs1,101 billion in financial year 2012/13. This 
means that Shs10,057 billion will be available to support economic and 
social development programmes.  

36. Madam Speaker, in line with the objectives of the National Development 
Plan and the long-term vision of the socio-economic transformation of 
Uganda, the budget priorities in next financial year will seek to achieve 
the following: 
i. Removing infrastructure constraints in transport and energy to 
facilitate private sector development as the engine of growth;  
ii. Promoting support to the critical productive sectors of the 
economy including Agriculture, Tourism in order to generate 
employment and increase production; 
iii. Improving the quality of social services focusing on education, 
health and access to water; andiv. Strengthening Public Sector Management for efficient service 


Road Transport  
37. Madam Speaker, road transport accounts for about 97% of the freight 
cargo in Uganda. Government will lower high vehicle operating costs and 
reduce time delays by improving the national road transport network. 
The priorities in the road sector are:-  
i. Rehabilitation and expansion of the road network with special 
emphasis on roads in agricultural areas and export routes; and 
ii. developing alternative access routes to the sea through both the 
southern and northern corridors. 
38. I am proposing to increase the allocation to the Works and Transport 
sector to Shs 1,651billion in the next financial year from Shs1,291 billion 
in the year ending.  
39. Madam Speaker, this allocation will enable construction to continue on 
the following roads:- 
i. Fort-Portal-Bundibugyo (104km); 
ii. Busega-Masaka (116km); 
iii. Nyakahita-Kazo-Kamwenge (143km); 
iv. Kawempe-Kafu (166km); 
v. Malaba/Busia-Bugiri (82km); 
vi. Tororo-Mbale-Soroti (152km); 
vii. Mbarara-Katuna (124km); 
viii. Jinja-Kamuli (60km); 
ix. Mbarara-Kikagati-Murongo Bridge (75km); 
x. Hoima-Kaiso-Tonya (85km);  
xi. Vurra-Arua-Koboko-Oraba (92km); 
xii. Gulu-Atiak (74km); 
xiii. Ishaka-Kagamba (35.4km); 
xiv. Kabale-Kisoro-Bunagana/Kyanika (101km); 
xv. Masaka-Mbarara (154km). 
40. Madam Speaker, construction will be started on the following roads:- 
i. Kampala-Entebbe Expressway (51km); 
ii. Muyembe-Nakapiripirit-Moroto-Kotido (193 kms) 
iii. Dualing of Kampala Northern Bypass (17km); 
iv. Construction of Mbarara Bypass (40km);  
v. Upgrading of Kamwenge-Fort Portal (66km); 
vi. Upgrading of Atiak-Nimule (35km); 
vii. Kalangala Infrastructure Project. 
41. Madam Speaker, Government is in advanced stages of finalizing 
funding for the following priority road projects:- 
i. Olwiyo-Gulu-Kitgum (167 kms) 
ii. Moroto-Nakapiripirit (92 kms) 
iii. Soroti-Katakwi-Moroto-Lokitanyala (208 kms) 
iv. Kapchorwa-Suam (77 kms) 
v. Villa Maria-Sembabule (48 kms) 
vi. Mpigi-Maddu-Sembabule (135 kms) 
vii. Mukono-Kyetume-Katosi-Nyenga (74 kms) 
viii. Ntungamo-Kakitumba/Mirama Hills (37 kms) 
ix. Rukungiri-Kihihi-Kanungu-Ishasha  (74 kms) 
x. Kyenjojo (Kabwoya)-Hoima – Masindi- Kigumba (137 km) 
xi. Buwaya-Kasanje-Mpigi-Kibibi-Mityana (90 kms) 
xii. Hoima-Butiaba-Wanseko (111 kms) 
xiii. Kayunga-Galiraya-Bbale (88.5 kms) 
xiv. Kabale (Ikumba)-Kanungu-Buhoma (120.0 kms) 
xv. Ishasha-Katunguru (88.0 kms) 
xvi. Kabale-Bunyonyi (6.0 kms) 
xvii. Mbale-Lwakhakha (41.0 kms) 
xviii. Atiak-Adjumani-Moyo-Afoji (104.0 kms) 
xix. Masaka - Bukakata 

42. Madam Speaker, in addition, the construction works and repairs of the 
following bridges will be undertaken:- 
i. Commence construction of Second Nile Bridge at Jinja; 
ii. Complete Rehabilitation of Nalubaale-Kiira Bridge; 
iii. Complete Bulyamusenyu and Muzizi Bridges; 
iv. Complete 3 bridges on Atiak-Moyo-Afogi Road; 
v. Construct Kanyamateke (Kisoro), Karujumba (Kasese), Alala 
(Nebbi) and Kasaigi (Kibale) and Semuliki Bridges; 
vi. Construct bridges in North and North Eastern Uganda at 
Olyanai, Obalanga, Alito, Ajeliek, Ojanai, Opot, Aakol, Airong, 
Balla, Agali, Engeti, Kochi and Nyawa. 

43. Madam Speaker, in order to enhance road maintenance and 
rehabilitation at the district level, 142 units of road equipment have 
been procured for local governments. We expect that this equipment 
will ensure prompt and efficient road maintenance. 
Water Transport 
44. Madam Speaker, a sizable portion of Uganda’s population lives around 
our rivers and lakes. However,the utilization of water transport 
remains low. In the next financial year, the following projects will be 
i. In addition to the recently commissioned Obong (Moyo)- 
Sinyanya (Adjumani) ferry, construct the Laropi- 
Adjumani and Amuru –Rhino Camp ferries routes 
ii. Construction of the Lake Bisina and Lwampanga 
(Nakasongola)-Namasale (Amolatar) landing sites; 
iii. Design the Bukungu-Kagwara ferry; and 
iv. Repair the Marine Vessel (MV)Kaawa. 
Rail Transport 
45. Madam Speaker, in recognition of railway’s potential, Government will 
undertake the following actions in the next financial year.  
i. Complete the feasibility study to upgrade Kampala - 
Kasese railway; 
ii. Commence the preliminary engineering design for the 
Malaba - Kampala standard gauge railway line. 
46. Madam Speaker, access to electricity is essential for economic 
development especially for agricultural and industrial processing and 
production. Government will prioritize increased generation capacity, 
and expand the transmission and distribution network to reduce 

systems’ losses. This will result in higher efficiency in the electricity 
sector and better quality of power. In the next financial year, 
Government will undertake the following:- 
i. Fully commission the 250MW Bujagali Hydro Power 
ii. Start construction of 600MW Karuma  Hydro Power 
iii. Complete preliminary designs for the 600MW Ayago and 
140MW Isimba Hydro Power Projects; 
iv. Provide financial support in the construction of 125 MW of 
renewable Mini Hydro Projects; 
v. Further expand the Rural Electrification Programme to 
increase access to power; and 
vi. Ensure aggressive power loss reduction by rolling out pre- 
paid meters and investing in the distribution network. 

Oil and Gas 
47. Madam Speaker, with respect to the Oil and Gas sector, Government 
has presented legislation to Parliament for establishing a sound legal 
and regulatory framework, as well as the institutional arrangements 
for prudent management of the oil resource. The Bills before 
Parliament are 
i. The Petroleum (Exploration and Production) Bill 2012 
ii. The Petroleum (Refining, Gas Processing and Conversion, 
Transportation and Storage) Bill 2012 
iii. The Public Finance Bill 2012, which contains the 
petroleum revenue management framework
48. We look forward to Parliament’s expeditious enactment of these vital 


49. Madam Speaker, the priorities in the agricultural sector is to ensure 
food security, provide raw materials and enhance export revenue. 
Therefore, the sector holds the key to Uganda’s economic 
transformation, job and wealth creation. To complement Government 
Agricultural Zoning Strategy, Government has adopted a commodity 
based approach which will focus on 11 selected commodities for 
increased exports to regional and international markets. Apart from 
traditional commodities of coffee and tea, other crops were selected for 
both their versatility as food security and export earning potential. 
50. Government will implement the following actions in the next financial 
i. the provision of improved seed and farm inputs and 
implements to increase production and productivity of seven 
food security commodities of the 11 commodities, namely:- 
maize, beans, coffee, market fruits and vegetables, and fish;  
ii. supporting the seed industry and provision of improved 
breeding stock for the seven commodities; and 
iii. Completing the ongoing rehabilitation of irrigation schemes 
and embarking on establishing of new ones to increase the 
provision of water for irrigation, livestock and for aquaculture 
by partnering with the private sector. 
51. Madam Speaker, the commodity approach implemented with the 
zoning strategy will concentrate on a particular commodity in a specific 
zone. In this way, we will be able to produce sufficient quantities that 
will support domestic and regional trade, as well as agro- 
industrialization to add value and create non-farm jobs required for the 
youth. In addition concentrating in a specific zone will allow the 
efficient provision of relevant services such as extension services, road 
and electricity infrastructure and financial services. 
52. For instance maize farmers in specific zones in the country will be 
facilitated to access both improved seed, and also the means to access 
flour milling plants and equipment to add value to their produce. This 
will enable maize farmers to benefit from higher prices paid for maize 
flour instead of lower receipts earned from grain. 
53. Madam Speaker, in order to increase production, Government is 
consulting nucleus farmers in the private sector on how to provide cost 
effective agricultural mechanized support to small holder farmers. This 
will increase value addition, and therefore household income for small 
holders farmers across the country. 
54. Madam Speaker the total direct and indirect allocations to the 
agriculture sectors for the next financial year will amount to U. 
Shs585.3 billion. 
55. Madam Speaker, Uganda has emerged as a top tourist destination over 
the last year. Uganda is rich in flora and fauna, offering wildlife safaris, 
variety of bird species and has hospitable people.  
56. Government will use its resources, working with the private sector,  to 
undertake the following:- 

i. Improve accessibility to tourist sites by upgrading road 
ii. Support enactment of hospitality standards through grading hotels 
and hospitality training  
iii. Promoting eco-tourism 
iv. Implementation of cost effective tourism promotion using tourist 
companies and on-line. 
Private Sector Competitiveness  
57. Madam Speaker, Government will continue to focus its efforts on 
improving Uganda’s private sector competitiveness by: 
i. Reducing physical costs in transport and electricity, among others); 
ii. providing the necessary policy, legal and regulatory framework. 
58. Madam Speaker, I am pleased to announce that a comprehensive 
review of business licenses has been completed, and recommendations 
made to simplify requirements, reduce discretionary powers, and 
eliminate redundant procedures. As a result of the review, I will 
eliminate about 27 licenses all of which were found to be either 
obsolete or redundant. An electronic licenses registry that will serve as 
a repository for all approved business licensing in Uganda will be 
established. Implementation of the agreed recommendations is 
estimated to lead savings in excess of Shs 78.3 billion for the private 
sector. These measures will be implemented in the next financial year.  
59. Government will also establish a One Stop Centre to provide online 
registration services for the various licenses required to start a 
business. In addition, a Small and Medium Enterprises (SMEs) Business Guide has been developed to provide SMEs with information 
on available financial, business development services (BDSs), and 
business licensing information.  
60. Madam Speaker, the following bills which are aimed at improving 
further private sector competitiveness, are before Parliament for which 
I am requesting expeditious passage:- 
i. Counterfeit Bill 
ii. Anti-Money Laundering bill 
iii. Industrial Property Bill 
iv. Accountants Bill 
v. Uganda National Bureau of Standards Bill 


Education Sector 
61. Madam Speaker, in the Education sector, Government will continue to 
enhance the quality and relevance of education at all levels. This will 
be achieved by improving the effectiveness and efficiency in the sector 
by reducing teacher and pupil absenteeism, provision of scholastic 
materials and enhancing school inspection. 
62. Madam Speaker, the education sector has the largest share of our 
national budget with a total provision increasing from Shs 1,418billion 
in the financial year ending, to Shs 1,669billion in the next financial 
year. This amounts to 17% of the total budget. The sector provision will 
also cater for includes salary increases for Primary School Teachers  
and Science Teachers in Post O-Level institutions. I have allocated Shs. 
290 billion for teachers, scientists and other civil servants. 

Creating Employment Opportunities 
63. Madam Speaker, Government will work with the private sector to 
expand skills development to match labour market requirements as a 
key requirement under Business Technical and Vocational Training 
and Education (BTVET). Government recognizes that jobs will be 
created by the private sector, for which it will continue to support with 
skills development of the workforce. 
64. One such joint venture with the private sector is the Youth Venture 
Capital Fund for which Shs. 25 billion is being lent out to youth, with 
the help of participating financial institutions. I am happy to report 
that remarkable progress has been made in the first few months of the 
scheme’s implementation. To date, Shs. 8 billion has been disbursed to 
3,000 youth. In addition, a dedicated desk officer at a senior level has 
been appointed at the Ministry of Finance to deal with all youth 
venture capital matters and liaise with stakeholders. The Youth 
Venture Capital Fund progress report will be tabled when Parliament 
reconvenes. I am allocation an additional Shs 3.25 billion towards the 
65. Madam Speaker, to address the needs of graduates who have bankable 
project proposals but lack the requisite funding, I am establishing the 
Graduate Venture Capital Fund with an allocation Shs. 16 billion to be 
implemented with participating financial institutions. 
Health Sector 
66. Madam Speaker, the health sector has achieved progress by increasing 
availability of basic medicines, achieving immunization rates of 
children against major killer diseases of 90%. In addition, infant and 
maternal mortality rates have reduce to 54 per thousand persons and 
352 per hundred thousand persons, respectively. However, the health 
care delivery system still requires major improvements to ensure 
access to quality basic health care for all. 
67. Madam Speaker, Government’s objective in the next financial year is to 
address poor child and maternal health, weaknesses in the drug 
management system, inadequate health infrastructure and personnel 
constraints. The following specific actions will be implemented:- 
i. Motivate and retain health workers through gradual 
salary increases and construction of staff houses. With 
support from the Italian Government, 88 staff houses will 
be constructed in the Karamoja Region alone; 
ii. Commence rehabilitation of Mulago National Referral 
Hospital and construction of referral hospitals in Kirudu 
and Kawempe zones of Kampala, including finalisation of 
negotiations to construct a modern women’s hospital at 
iii. Commence refurbishment of Kabale, Hoima and Fort 
Portal Regional Referral Hospitals 
iv. Rehabilitate Kawolo Hospital in Lugazi and Itojo Hospital 
in Ntungamo utilising support from the Spanish 
Government v. Provide solar powered fridges, Emergency Obstetric Care 
(EmONC) lifesaving medicines and kits, Family Planning 
equipment and commodities to health facilities 
vi. Conduct maternal and pre-natal death audits and  
undertake community sensitization and mobilization  
vii. Protect children from pneumonia and diarrhoea by 
introducing pneumococcal and Rotavirus vaccines. 
viii. Reduce the prevalence of malaria by conducting indoor 
residue spraying and use of Rapid Diagnostic Tests (RDTs) 
to improve diagnosis.  
ix. Mitigate the effects of HIV/AIDS by undertaking 
Prevention strategies such as ABC, Circumcision, and 
Elimination of Mother to Child Transmission, in addition 
to enrolling an additional 100,000 people infected with 
HIV/AIDS on Anti-Retroviral Treatment  
Water and Environment Sector 
68. Madam Speaker, Government’s priority in the Water sector will be to 
provide water for production. The component for bulk water supply 
previously under the Agricultural Sector has now been transferred to 
the water sector. As a result, the total allocation to the water sector in 
the FY 2012/13 has increased from Shs 271 billion to Shs 355 billion. 
69. Madam Speaker, in the next financial year, gravity flow schemes 
supplying Nabweya, Lirima and Kanyampaga and small piped water 
systems for Luanda, Kabumba and Ongino Rural Growth centers will 
be constructed, for improved rural water supply. Piped water systems 
will also be built in Lamwo, Agago and Nwoya, among many others. 
Piped water systems in Paidha, Patongo, Opit, Omugo and Agwegtownships will also be completed and construction of new 
systems in Moyo, Ibuye, Kalongo, Purongo and Akujo will commence. 
Further investments in urban water supply will include the following:- 
i. Completion of Nakaseke town water supply system and 
restoration of existing systems in Kakiri, Bukomansimbi 
and Wakiso towns; 
ii. Drilling of boreholes and construction of water supply 
systems in the towns of Ntwetwe (Kyankwanzi), Kasenje 
(Wakiso) and Zirobwe (Luwero); 
iii. Construction of new, expansion of existing and 
rehabilitation of water supply systems in Kaabong, Abim, 
Karenga, Namalu, Bukedea, Busia, Kapchorwa,Katakwi, 
Matany, Serere, Kachumbala, Namutumba, Kaliro and 
Bombo Townsand Alwi Dry Water Project. 
70. Madam Speaker, Government, through National Water and Sewerage 
Corporation, will also undertake the following projects:- 
i. Construction of Lubigi Water Treatment Plant; 
ii. Rehabilitation of Bugolobi Sewage Treatment Plant, and 
the construction of the Nakivubo and Kinawataka waste 
water management plant; 
iii. Emergency rehabilitation and upgrading of Gaba I and II 
intake to increase water production capacity to 300 
million litres per day; 
iv. Construction of a 4 million litres reservoir at Namasuba 
71. In order to address constraints in water for production, the following 
projects will be undertaken during the year:- i. Construction of Andibo dam in Nebbi district, Kajodi 
Valley Dam in Mityana District, Nakabala and Nyamiringa 
ii. Rehabilitation of Windmills in Karamoja Region; 
iii. Construction of Kitasi-Sanga-Kanyaryeru bulk water 
scheme in Kiruhura district; 
iv. Design of Rwengaaju irrigation scheme in Kabarole and 
Kulwodong dam in Abim District. 


72. Madam Speaker, experiences from the fastest growing world economies 
point to the important role an efficient public service plays in 
facilitating growth and development. An efficient and transparent 
public sector procurement process facilitates rapid private sector 
growth, and access to credit from financial institutions. An effective 
public sector facilitates the private sector to create jobs, supports 
forward and backward industrial linkages and ultimately leads to 
faster economic transformation. 
73. In order to attain our socio-economic transformation objectives faster, 
public sector efficiency and effectiveness service will therefore be of 
paramount importance starting next financial year. This is especially 
critical for six key service delivery sectors, namely –agriculture, roads, 
energy, health, education, and water. This is because the vast majority 
of infrastructure and social services provided to the bulk of the 
population are delivered by these sectors. These sectors also take a 
substantial share of the National Budget, and form the major focus of the National Development Plan (NDP) strategies. In order to improve 
service delivery, the following actions will be emphasized;- 
i. Further alignment of sector priorities and allocation of 
resources across the board towards strategic interventions 
of the National Development Plan (NDP). This means that 
resources will only be allocated to programmes and 
projects that have the highest impact on unlocking the 
binding constraints to socio-economic transformation as 
identified in the NDP. 
ii. Enhance implementation of the first phase of the National 
Identity Card Project by allowing economically active 
Ugandans to pay for the Identity Cards on a cost sharing 
iii. Strengthened Performance and Contract management 
across the whole of government with emphasis on the six 
service delivery sectors,  
iv. ring fencing of allocations and quarterly progress 
reporting on budget implementation to Cabinet for closer 
oversight of performance of the six service delivery sectors 
to ensure the growth stimulus is attained.   
v. Enhancing the Cluster approach to planning, monitoring 
and evaluation to harness synergies between sectors; 
vi. Salary Enhancement for Public Servants with emphasis 
on Teachers and Scientists; The Ministry of Public Service 
is finalizing a paper to guide the establishment of a Salary 
Review Commission to address issues of wage disparities 
across Government vii. Continued implementation of measures to eliminate 
inefficiency and wastage in public expenditure by 
minimising allocations to consumptive areas such as 
allowances, printing, workshops and seminars. 
viii. Review the entire budget to allocate more resources 
towards the critical growth sectors of the economy as 
identified in the National Development Plan (NDP). 
ix. Strengthen Public Financial Management by automation of 
Government financial management, payroll and procurement  
processes and systems, 
x. support anti-corruption agencies to tackle corruption in all 
Government agencies by strengthening controls and 
enforcement to reduce opportunities for corrupt practices. 
74. Madam Speaker and Honourable Members of Parliament, in view of the 
substantial resources allocated to the Roads, Energy, Water, Health, 
Education and Agriculture sectors, respective votes will be required to 
submit quarterly reports to Cabinet to provide progress 
implementation of agreed work plans. V. CONSTITUTIONAL SELF ACCOUNTING BODIES  
75. Madam Speaker, the budgetary proposals of the following Self 
Accounting Bodies have been submitted in compliance with Article 
155(2) of the Constitution. 
(i)  Courts of Judicature 
(ii)  Electoral Commission 
(iii)  Inspectorate of Government 
(iv)  Parliamentary Commission 
(v) Uganda Law Reform Commission 
(vi)  Uganda Human Rights Commission 
(vii)  Uganda Aids Commission 
(viii)  National Planning Authority 
(ix)  Office of the Auditor General 

76. In accordance with Article 155(3) of the Constitution, Government has 
made recommendations on these proposals. I hereby lay both the 
budgetary proposals and the recommendations of Government before 
this august House, as required by Constitution 
77. In order for me to submit a fully financed National Budget for your 
consideration in accordance with Article 155(1) of the Constitution, the 
budget provisions of these Self Accounting bodies are in accordance 
with the resource envelope conveyed to them in the course of budget 
preparation, including the presentation of the National Budget 
Framework Paper to Parliament, in accordance with the Budget Act 

78. Madam Speaker, the objectives of the Revenue measures for the 
Financial Year 2012/13 are for revenue generation, reform of the tax 
laws, enhancing taxpayer compliance and to support tax 
79. Madam Speaker, I will also announce some of the decisions agreed 
upon by the Sectoral Council on Finance and Economic Affairs held on 
18th May 2012 in Kampala. 
Income Tax 
Income derived from Treasury Bills and Bonds 
80. Madam Speaker, I propose to increase the withholding tax on income 
derived from Treasury Bills and Bonds from 15% to 20% as a final tax. 
This measure will generate Shs.16.3bn.  The details are contained in 
the Income Tax (Amendment Bill) 2012. 
PAYE Threshold  
81.  Madam Speaker, Hon. Members, I am proposing to increase the PAYE 
threshold from Shs.130,000 to Shs.235,000 per month and the tax 
bands will be adjusted accordingly. The details are contained in 
Income Tax (Amendment Bill) 2012. 
82. Madam Speaker, I am also proposing that an additional 10% be 
imposed on individuals with chargeable income of Shs.120 million and 
above, per year.  The details are contained in the Income Tax 
(Amendment Bill) 2012. 

Value Added Tax (VAT) 
Re-instating VAT on the supply of water 
83. Madam Speaker, in this financial year, I propose to reinstate VAT on 
water at 18%. This measure will generate Shs.21.7bn. 
Standard rating of biodegradable packaging materials 
84.  Madam Speaker, Hon Members, I propose to reinstate VAT on the 
supply of biodegradable packaging materials which is currently 
exempt. This is to enable suppliers to claim input VAT related to their 
products produced. This measure will generate shs 2.2 billion. The 
details are contained in the Value Added Tax (Amendment) Bill 2012. 
Re-instating the VAT exemption on gambling and lottery services and 
Increasing the Gaming and Pool Betting tax 
85. Madam Speaker, Hon Members, since the introduction of  VAT on the 
supply of betting, lotteries and games of chance (Gambling), tax 
administration has encountered  challenges in application. I am 
therefore proposing to reinstate the VAT exemption on gambling but 
increase the Gaming and Pool Betting Tax from 15% to 20%. This 
measure will generate Shs.4.3bn.The details are contained in the VAT 
(Amendment Bill) 2012. 
Excise Duty 
Increasing excise Duty on spirits 
86. Madam Speaker, Hon Members, I am proposing to increase excise duty 
on spirits made from locally made raw materials from 45% to 60%. 
Madam Speaker, I am also proposing to introduce a specific rate and 
an ad valorem duty rate on undenatured spirits of Shs.2, 000 per litre 
or 80 per cent, respectively, whichever is higher, as a means to control undervaluation.  The measure will generate Shs.10.4 billion.  The 
details are contained in the Excise Tariff (Amendment) Bill 2012. 
Imposing Excise Duty on cosmetics and perfumes 
87. Madam Speaker, I am proposing to impose excise duty on cosmetics 
and perfumes at a rate of 10% as a revenue measure.  The details are 
contained in the Excise Tariff (Amendment) Bill 2012. This measure 
will generate Shs.4.1bn.  
Non Tax Revenue 
Other Fees and Charges  
88. Madam Speaker, Hon Members, I am proposing to vary various fees 
and charges for the provision of Government services, authorizations 
and permits so that they are commensurate with the cost of rendering 
the service. This measure will generate Shs.31.7bn.  The details are 
contained in the Finance Bill 2012. 
Review of Tax laws on Excise Duty, Stamp Duty and Lotteries and 
89. Madam Speaker, I am proposing to reform the Excise Duty Law, the 
Stamps Act, the Lotteries, Pool Betting and Gaming Act and also 
introduce a Tax Procedure Code to improve compliance and ease 
 tax administration. These Bills will be introduced  to Parliament next 
Financial Year. 
Decisions made at EAC Pre-Budget Consultations  by the 
Ministers of Finance 
90. Madam Speaker, Hon. Members, the First Sectoral Council of Finance 
and Economic  Affairs considered Pre- Budget issues and the 
following  decisions, among others, were made and the details will be 
contained in the East African Community (EAC) Gazette. 
Duty Remission, exemption regimes and preferential trade schemes  
91. Madam Speaker, the Sectoral Council of Finance and Economic Affairs 
recognized the need to take stock and an analysis of the existing duty 
remission schemes within the region to ensure equity and uniform 
implementation of intra EAC trade regime.  
Set Top Boxes for analogue digital and terrestrial transmission 
92. Madam Speaker, to facilitate smooth transition from analogue to digital 
terrestrial transmission by use of Set Top Boxes, import duty on Set 
Top Boxes was reduced from 25 percent to 0 percent for a period of one 
Food supplements and mineral premix used in fortification  
93. Madam Speaker, given that food supplements and mineral premix are 
essential in improving nutritional deficiencies, the import duty was 
reduced from 25 percent to 0 percent for food supplements and 
mineral premix. 
Vacuum packing bags  
94. Madam Speaker, import duty was reduced from 25 percent to 10 
percent on vacuum packing bags for one year to ease packaging by the 
manufacturers.  95. Madam Speaker, all these measures will come into effect on 1st 
July 2012. 

96. Madam Speaker, Article 152 (2) of the Constitution requires me to 
periodically report to Parliament on  the exercise of powers 
conferred upon me by any law to waive or vary a tax imposed by that 
law. This is to report that this fiscal year, I have not exercised powers 
conferred by the Income Tax Act and Value Added Tax Act to waive any 
97. Madam Speaker, Government has however paid Shillings eleven billion 
six hundred one million five hundred forty two thousand four hundred 
forty three only (11,601,542,443) for some institutions and Non- 
Government Organizations with tax exemptions clauses in their 

98. Madam Speaker, article 159 (4), section 13 (1), (2) and (3) of the 
Budget Act 2001 require an account of the total indebtedness of 
Government. I therefore lay before the House a report reviewing all 
loans contracted and Grants extended to the Government. I wish to 
mention that Government did not extend any guarantees to any 
Agency, Company or Statutory Corporation in the FY 2011/12. 

99. Madam Speaker, this budget statement reflects mutual positions and a 
collective determination for renewed economic growth and addresses 
the key challenges to socio-economic transformation of Uganda. In 
conclusion, I commend this budget to all those Ugandans that have 
tirelessly worked and contributed to the economic transformation of 
our dear country.  

For God and My Country 
I beg to move.