Domestic Resource Mobilization – Resource Enhancement & Accountability Programme

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Domestic Resource Mobilization
Domestic Resource Mobilization

Outcome 1 : Improved Resource Mobilization for Uganda's Sustainable Development

The aim is to improve domestic revenue mobilization to be able to finance the fiscal deficit and reduce (or eliminate) aid dependence. Nonetheless, in the process of mobilizing domestic revenue, and during a phase that requires major investment in infrastructure, it recognizes the need for borrowing. This objective therefore also aims to improve the quality and sustainability of external resources, such as grants, concessional and non-concessional loans.

There are 3 key result areas (KRA) under this objective. These represents the thematic focus of proposed interventions:

KRA 1.1 : Enhanced Enabling Environment for revenue Mobilisation

Key interventions (outputs) include:

Enhance enabling environment for assessment, collection and management of revenue from oil, gas and minerals. Includes establishment of regular reporting frameworks such as EITI
Develop and implement medium-term Domestic Revenue Mobilization Strategy
Strengthen tax policy and legal framework for revenue mobilization with consideration of fairness, equity and simplicity.
Strengthen the tax policy function through establishment of an institutional and policy framework for tax policy analysis and formulation.
Establish policy framework for transparency in reporting on tax expenditures.
Strengthen Performance monitoring and reporting framework for DRM strengthened.

KRA 1.2 : Tax Compliance Improved Through Increased Efficiency in Revenue Mobilisation

Key interventions (outputs) include:

Enhance revenue data integrity and efficacy of IT systems.
Implement the strengthened tax Compliance Improvement Plan (CIP).
Strengthen URA capacity for investigation. Includes framework and capacity for investigation of tax evasion and Illicit financial flows in line with DRM strategy;
Enhance administrative capacity and framework for effective international taxation.
Establish mechanisms for enhanced contribution of non-tax revenues (NTR).

KRA 1.3 : Sustainable Debt and Development Financing

Key interventions (outputs) include:

Develop a Public Financing Strategy entailing modalities for comprehensive and transparent assessment of existing and potential new financing options
Regular market engagement on investment in Government Securities. Including primary and secondary market sensitization and introduction of Diaspora bonds, infrastructure bonds, mobile money bonds
Enhance capacity in public debt (loan) negotiation, debt sustainability analysis and Operationalization of the debt management strategy.
Develop support management policy framework with systems to promote aid effectiveness.