Basing on the new monetary report realized by the Bank of Uganda, the government was in a deficit of UGX 1.78 trillion less than the anticipated UGX 16.1 trillion in the last eight months.
The May realized report indicates that in opposition to targets set by the Uganda Revenue Authority of UGX 16.1 trillion, meant to be got from new tax collections, a 10.7% deficit was recorded.
Reports further indicate that the under tax collection was because of a limited tax revenue from not only the domestic trade but also the taxes collected from International trade.
Additionally, the bank pointed at the adverse effects of COVID-19 as a primary influence towards the limited amount of taxes that the central bank was able to collect as the statement read in part;
“This was largely due to the revenue target for 2020/21 being revised downwards on account of the adverse effects of the coronavirus pandemic on economic activity. Therefore, the over performance of revenues relative to the target may not necessarily mean higher revenue collections due to improved economic fundamentals.”
Apart from the above weaknesses, the receipts from grants were only UGX 1.219 trillion which was less by UGX 93.3 billion as per the budget estimation. However, on a positive note, in domestic revenue a total of UGX 12.704 was collected which was more than the budget estimate by UGX 541 billion.
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