Gov’t Has No Direct Financial Stimulus For Businesses Affected By COVID-19 Pandemic
The Finance Minister Matia Kasaija has said that the government does not have a provision for any fiscal stimulus for businesses that have been affected by the impacts of the COVID-19 pandemic.
Several economists and players within the private sector have been calling upon the government to consider giving economic stimulus packages to businesses, most especially Small and Medium Enterprises to save them from winding up.
The said package is looked at inform of tax breaks, waivers, and direct recapitalization.
However, Kasaija notes that the private businesses should utilise loans in the Uganda Development Bank which the government has recapitalized to support businesses in the post-COVID-19 recovery process.
The government recapitalized UDB to the tune of one trillion Ugandan Shillings, with more funding expected to come from the World Bank and International Monetary Fund to increase access to credit among Ugandan entrepreneurs.