By Benjamin Jumbé
The government has revealed that it cannot influence prices whose changes are caused by external shocks.
The remark was made by Finance Minister Matia Kasaija during the reading of the national budget for the financial year 2022/23.
“The government cannot influence price levels whose changes are driven by external shocks beyond its control. We will therefore not apply measures that could lead to lasting and painful distortions of the economy. For example, persistent commodity shortages, hoarding and black markets,” Mr. Kasaija reiterated in his budget speech for the fiscal year 2022/2023.
The minister argued that the rise in prices of key commodities was due to events outside Uganda, including covid-19 restrictions which caused a shortage in the supply chain and the Russian war. -Ukrainian.
He, however, outlined several short- to medium-term measures to be taken by the government, including supporting farmers to grow fast-maturing foods to ensure sufficient domestic supply; maintain market-based pricing to support a continuous supply of goods and services aimed at ensuring that demand does not exceed supply.
He added that accelerating the improvement of alternative fuel import routes across Lake Victoria to avoid possible unnecessary supply disruptions and using appropriate fiscal and monetary policies to mitigate the impact price shocks are some of the long and short term measures the government has taken to curb the rise. raw material prices.
Others are building additional medium-term fuel storage infrastructure and storing it properly, while accelerating commercial oil production and oil refinery development.