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More than 92% of the fiscal year 2012/13 has been implemented. Whilst low budget execution was witnessed during the first half of the year, this accelerated during the end of the third quarter of the fiscal year.

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According to the figures from the National budget department at the Ministry of Finance and Economic Planning (MINECOFIN), budget implementation performance was overall above 70 percent by the end of March. The 2012/13 budget implementation was affected by the realization of less than projected financial flows largely from delays and in some cases cancellation of budgetary grants by some donors.

Figures show that there was a variance of about US$ 44 million between July and December. Total actual grants during this period were US$ 199.1 compared to US$ 243.5 million projected. “Such a variance called for calibration of expenditures between July and December 2012 period to safeguard economic stability,” Elias Baingana, the Director General of National Budget said.

Nevertheless, most of the priority expenditures were executed and service delivery was less affected. “In the medium term, our fiscal strategy will be to continue to advance fiscal consolidation by increasing revenue mobilization and prioritizing expenditure”.The Director General noted.

Tax revenues are projected to grow by an average of 0.2% of GDP for the 2013/14 fiscal year and the medium term. Overall total outlays are projected to decline in the medium term with current expenditures averaging 13.3% of GDP against 14.2% for development expenditure. Overall cash deficit is also projected to decline from 6.1% of GDP in 2012/2013 to 3.1% by 2015/16.

 Minicofin

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