The Minister for Finance, Planning, and Economic Development, Matia Kasaija has highlighted six measures that Government is undertaking to alleviate vulnerability shocks against Ugandans, occasioned by escalating commodity prices.
While delivering the 2022/23 financial year budget speech, Kasaija said Government will prioritize supporting farmers to grow more fast-maturing food and oil seeds to ensure sufficient domestic supply; maintaining a market-based determination of prices to support a continuous supply of the goods and services intended to ensure that demand does not outstrip supply.
The Government will also expedite the improvement of alternative fuel import routes across Lake Victoria to avoid possible unnecessary supply disruptions which have led to an increase in fuel prices.
He further noted that the Government will use appropriate fiscal and monetary policies to mitigate the impact of price shocks.
Kasaija said that the Government will embark on the construction of additional fuel storage infrastructure in the medium term, and stock them adequately as well as expedite commercial oil production and development of the oil refinery.
He made it clear that it will be hard for the Government to have a significant influence on price fluctuations, noting that the Government will avoid all measures that can lead to painful distortions.
“Government cannot influence price levels whose changes are driven by external shocks that are outside its control. We will therefore not be applying measures that can lead to long-term and painful distortions in the economy. For example, persistent shortages of goods, hoarding, and black markets,” Kasaija emphasized.