Uganda's budget is likely to focus on the country's economic woes:  a GDP growth rate that has fallen to an average of 5.5 per cent in the past three years; rampant unemployment; a rising budget deficit and poverty at 35 per cent.

Economists have noted that these are among the key issues facing the country and their reduction must be a  priority in this year's budget, to be presented by  Finance Minister Gerald Sendawula on June 13.

"Uganda's 2002/03 budget should contain a poverty alleviation to deal with the high levels of poverty in the country," said an economist at Makerere University's Economic Policy Research Centre.

Significantly this would help jump-start the economy and at the same time increase disposable income, which in the 2001/02 year affected the purchasing power of many households. 

According to the Uganda Revenue Authority (URA), this had a negative impact on taxes, as imports declined, causing the authority a Ush45 billion ($25 million) revenue shortfall.

People interviewed by The EastAfrican said that the 2002/03 budget should indicate how much the country would spend towards poverty eradication. 

Widespread poverty and poor funding for the health and education sectors are at odds with the country's reputation as a success story in East Africa.

Increased school enrolment especially in primary schools in recent years has over stretched resources.  

Classrooms, especially in rural areas are overcrowded and the teacher-to-pupil ratio is very high. Some headteachers have already complained about the teachers' wage bill, which they say is ernomous.

There has been a continuous complaint about the Cabinet of 65, the biggest in the region. Despite its smaller population compared with that of Tanzania and Kenya, Uganda also has the largest parliament with 304 legislators.

The Ministry of Finance has already complained to parliament about the large expenditure on politicians. Reducing this seems to be a sure way to reduce the budget deficit. 

However, without necessarily increasing revenue collections, government expenditure, especially on political appointees, needs controlling, and there lies the minister's task in the 2002/2003 budget. One way of reducing the budget deficit is to increase revenue collection, but this would require an increase in taxes and the power to enforce collection.

Uganda's revenue collection has been on the increase since 1992, but a population that is now questioning the use of public funds makes such a move very difficult. 

The Finance Minister therefore has the option of either widening the tax base or reducing some taxes so that consumption is stimulated.

The minister also needs to introduce policies to improve collection of taxes on property, as it is one of the fastest growing sectors, with construction expanding between 13 and 18 per cent in the last couple of years.

The government also needs to make the cost of non-compliance expensive so that it acts as a deterrent against evasion. Sendawula should try to ensure that changes brought about to the tax system are simple and easy to understand.

The issue of smuggling has been discussed for many years, what is needed now is tough action. Smuggling in the past three years has been blamed for the fall in revenue collection. 

Given the fact that revenue increases are not likely to be easy, government expenditure has to be tackled head on. The country cannot afford an ever-increasing deficit while public sector funds are being misappropriated as reported by the Auditor General every other year.