KAMPALA – Government on Wednesday, January 22, 2020, tabled before Parliament the Third National Development Plan (NDPIII) that will guide the country’s development path to middle-income status.
The Minister of State for Planning in the Ministry of Finance, Mr David Bahati, tabled the NDPIII, which he says intends to focus on increasing average household incomes and improve the quality of life of Ugandans.
The plan replaces NDPII that sought to achieve competitiveness for sustainable wealth creation, employment and inclusive growth.
Mr Bahati said the economic growth strategy for the new plan focuses on expanding the industrial base of the economy, consolidating and increasing the stock and quality of productive infrastructure and enhancing productivity, especially in the agricultural sector. He added that it also focusses on sustainable exploitation of natural resources and supporting private sector development through providing affordable financing.
NDP III is thereby supposed to inform processing and approval of budgets of the next five years beginning with 2020/2021 financial year.
Over the planning period (2020– 2025), the government forecasts an ambitious economic growth rate of 7 percent. The GDP per capita is also expected to reach $1,301 (Shs3.8m), therefore, putting the country into middle-income status by 2025. The initial government plan was to achieve middle-income status in 2020.
He also revealed that the new plan will focus on enhancing value addition in key growth opportunities (agriculture, tourism, minerals, oil & gas and knowledge) which NPA officials say have the highest potential to generate employment for Ugandans and positive multiplier effects on other sectors.
The plan will be processed by the Budget Committee in order to meet the deadline of 1st February when Parliament must approve the NBFP.
Budget committee chairperson, Amos Lugoloobi told the Speaker, Rebecca Kadaga that the committee will present a preliminary report on NDP III by Tuesday next week so that Parliament can approve it and thereafter assess NBFP’s alignment with the plan and then present a report on NBFP by end of the week. Parliament must approve NBFP by 1st February 2020, which falls on a Saturday.
