Government technocrats have finalised a Shs4.7 trillion stimulus package to revive the economy which has slumped from the effects of the Covid-19 pandemic.
Finance Minister Matia Kasaija is expected to unveil the raft of measures as early as Tuesday if approved by Cabinet on Monday, although the announcement could also be held back to the State of the Nation address on June 4 or Budget Day on June 11, sources told this newspaper.
The plan seeks to help struggling businesses stay afloat, create jobs and provide tax breaks for struggling companies to encourage spending and investment. Although the plan is yet to be made public, interviews with different senior government officials familiar with the planning shared insights of what is contained in the stimulus package.
They include providing cheaper loans to small and medium enterprises, tax cuts for sectors badly affected by the pandemic, and defending the shilling to prevent imported inflation.
Speaking during a public dialogue yesterday, Secretary to the Treasury Keith Muhakanizi revealed that the Executive is waiting for the Parliament to approve a $491.5 million (Shs1.9 trillion) loan from the World Bank and another $300 million (Shs1.1 trillion) financing tranche from the same institution to support the budget and pay for the interventions.
The dialogue was organised by Advocacy Coalition for Development and Environment (Acode), Civil Society Budget Advocacy Group (CSBAG) and Ministry of Finance.
The executive director of Acode, Dr Arthur Bainomugisha, called for strict accountability of the stimulus package funds and transparency in the budget.