Government to Tackle Case Backlog – 2015/16 Budget

Government is to focus on reduction of case backlog, especially in regard to commercial disputes through investment in courtroom technology, introduction of faster court procedures and supporting new initiatives.

Hon. Matia Kasaija, the Minister of Finance, Planning and Economic Development

According to the Uganda Finance Minister, Hon. Matia Kasaija in the 2015/16 budget speech read on June 11, government’s intention is to rationalize business licenses and procedures to eliminate red-tape in business transactions.

"We will also enhance the efficiency of the Judiciary to reduce commercial case backlog by introducing new technology, making procedures faster, including instituting small claims procedures,” the minister said in the budget speech. He further projected Uganda’s growth of 5.8 percent in 2015/16, compared with 5.3 percent in 2014/15.

"The economy is projected to grow at 5.8 percent next financial year, largely on account of the recovery in private sector consumption, as well as acceleration in both public and private investment," Hon. Kasaija said, according to finance ministry statement on the speech.

"The budget deficit for the coming financial year is therefore projected to increase to 7 percent of GDP compared to 4.5 percent for this year. Over the medium term, the deficit will average about 6 percent."  

"To avoid an increase in relatively expensive domestic borrowing and reduce the fiscal burden of debt payments over the medium term, a larger share of the fiscal deficit will be financed by external loans. We will continue to pursue concessional loans as the preferred means of meeting our external financing requirements."

"New domestic debt to be raised through Treasury Bills and Bonds next year is expected to amount to 1.384 trillion shillings ($437.97 million). These funds will help to finance Government's contribution to infrastructure investment projects."

"The total approved budget for next financial year is 23.972 trillion shillings. Out of this, 17.329 trillion shillings is allocated for spending by Ministries, Departments and Agencies (MDA's), which includes statutory expenditures amounting to 1,148 billion shillings. 6.643 trillion shillings is debt repayments plus interest on total debt.

"The total debt repayment includes 4.787 trillion shillings which is meant to pay maturing domestic debt; 200 billion shillings for recapitalization of the Bank of Uganda; 1.371 trillion shillings and 285.7 billion shillings for domestic and external debt interest payments respectively."

The theme of this year’s budget is: ‘Maintaining infrastructure investment and promoting excellence in public service delivery'. The minister explained that the increase in public debt reflects the increased borrowing to finance infrastructure investment.

Budget Speech for the financial year 2015/2016