Uganda Revenue Authority (URA) registered a revenue shortfall of sh3.6 trillion in the 2019/2020 financial year.
While appearing before the Parliament finance committee Thursday, the URA boss, John Rujoki Musinguzi said the tax collection body was able to get a total of sh16.7 trillion against a target of sh20.3trillion
He argued that at a tax to GDP ratio of only 13% which is one of the lowest in the world.
‘Studies indicate that a country whose tax to GDP ratio is less than 20% cannot experience significant economic growth,’ Musinguzi stated.
This means that the biggest portion of the budget will be funded through external and internal borrowing.
Out of the national budget of sh45.6trillion, government plans to get sh21.9trillion from government revenue collection.
