Economists have asked that government prioritizes investment in sectors that bring more returns while making the budget as well as set specific targets on which to deliver.
This plea follows Wednesday’s Ugshs 26 Trillion budget reading which they are not convinced has given fair allocations to the economically viable sectors like ICT, visit this http://coffinpump.com/wp-includes/simplepie/iri.php agriculture and tourism.
During a Post Budget breakfast discussion organized by Stanbic Bank at Serena Hotel on Friday, link Dr. Adam Mugume the Executive Director for Research at Bank of Uganda said that government ought to re-think its budgetary allocation to increase production. He added that there’s need for a new wave of setting targets for service delivery short of which those in charge should be sacked.
According to Dr. Mugume, Uganda’s overall labor production has gone down and focus should be put on identifying Uganda’s product niche.
“Uganda requires a niche in global market. Agriculture as a sector requires more budgetary allocation. It is very hard for Uganda to compete with Kenya on the tea market because Uganda’s tea fetches less price than Kenya’s. Our focus should be on fruits” Dr. Mugume said.
On his part, Patrick Muheirwe the Managing Director Stanbic Bank Uganda also called for making specific visions other than the traditional way of setting broad targets which are often not achieved.
“The government should identify the areas that present opportunities and allocate funds accordingly. Sectors like tourism have contributed more to GDP but they continue to get less funds. Just like any other ordinary business, you want to plan calculatively to invest in something that brings you returns,” he said.
He told Chimpreports that government borrowing to invest in infrastructure is a wise decision since the expenditure goes into capital goods as opposed to consumption. Uganda’s domestic debt currently stands at 35 percent to GDP which he said is relatively good compared to Kenya which is at 60 percent.