Uganda’s development is quiet yet incredibly thirsty, impedimental: bound by unproductive government spending. If so, imagine a country budget filled with seemingly rather than important funds for education or healthcare, a gorgeous spread of special food and drinks, an endless round of welfare and entertainment, and a seemingly rather groggy desire for international travel.
We are mostly talking about SHS. 2.0 trillion is exactly disappearing (according to the National Budget Framework Paper FY2025/26) into the deep by which counterproductive spending is considered “essential.” On the other hand, important fields such as Primary Education and primary education have either excluded or managed to do so. You need to wonder if we are building a country or planning an endless party.
Over the years, the government has implemented promising policies, initiatives and programs aimed at increasing household income and accelerating economic growth. Conversely, sustainable challenges continue to hinder the realization of a socioeconomically transformed society. The national budget has increased by 201.7% over the past decade from March 16, 2015 to February 25, 2024, 23.97 trillion, fiscal year 2015, to February 25, 2024, but the implementation and use of these funds remains a frightening speculation.
Despite increased allocations, poor implementation and financial mismanagement are hampering Uganda’s progress. The Audit General (OAG) Report 2024 reveals unsold irregularities in payments, overpayments, loss of income and wasted spending that reached approximately 6.9 trillion in 2023/24. It is being used.
The government has also incurred an unadvertised loan commitment fee of 73 billion shs.79 billion, further exacerbating current public debt stocks at shs.94.9 trillion, and further exacerbating public debt stocks by the IMF. Additionally, a significant portion of Uganda’s budget is spent on unproductive spending where the country’s growth, profits, or in some cases purchased items remain unused/idol, while remaining unused/idol in areas other than important areas such as healthcare, education, agriculture.
In fiscal 2023/24, approximately 2.9 trillion yen was lost to spending that did not contribute to economic growth. (OAG, 2024) In the coming year 201025, the $2.1 trillion unproductive spending of bedding and clothing, donations, special drinks and food, welfare and entertainment (3.6%) is the US National Budget Framework Paper FY2024/25. Such allocations reduce productive spending that directly affects citizens’ livelihoods.
Despite the promise of a revenue collection trend that has been registered within the six months, inefficiency persists. The Uganda Revenue Authority (URA) aims to increase its collection from Shero 32.1 trillion in 201024 to 35.70 trillion in Shs.35.70/26. However, revenue leaks such as outstanding taxes (68.8 billion), mineral rental fees (43.9 billion), losses from pricing by large telecom operators (2.4 billion Shs) and government investments such as dei-Biopharma (cums.723.4 billion), government investments such as dei-Biopharma (cums.723.4 billion), and Roko Construction (Shs.207.13 billion) undermine these efforts. A decline in returns on such investments results in a financial burden rather than an economic benefit.
Comprehensively, the inefficiencies surrounding service delivery hamper the government’s objectives. Don’t forget that the government receives development finance support. However, this is because it was leaned and reduced by the US government to reduce unproductive spending.
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In conclusion, the government must adopt “just enough, too many” realistic budgeting for fiscal year 201025/26, improve public sector efficiency, particularly to maintain service delivery, reduce debt burdens and maintain careful fiscal management, prepare appropriately for projects, and reduce unproductive spending that has approached 201025/26. However, citizens must take active responsibility to the government to ensure that public funds are allocated efficiently and productively to achieve socioeconomic change from this highly ambitious tenfold growth strategy.
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Javes Aterra
Aterarjabez85@gmail.com
Economist at Civil Society Budget Advocacy Group (CSBAG) – Graduate student.
