Senior economists in Uganda have asked President Yoweri Kaguta Museveni to immediately reduce Cabinet numbers and merge certain government agencies to reduce high expenditures.
This stemmed from the recent decision by the World Bank to suspend further loan disbursements to Uganda over the recently enacted Anti-Homosexuality Act.
Dr. John Mutenyo from Makerere University School of Economics, while presenting a paper during the 7th High Level Economic Growth Forum held at the Serena Hotel in Kampala on Thursday, August 24, 2023, said that Uganda’s economic growth is possible once the government accepts to prioritize expenditures.
Dr. Mutenyo said that there is no need for Uganda to keep over 80 cabinet members, government departments and agencies that are redundant.
In a move to reduce government expenditures, Dr. Mutenyo further suggested that Uganda should consider reducing the number of Resident District Commissioners, among others.
“Do we really need 10 RDCs in Kampala? Do we need two Ministers for Kampala? Imagine having the whole ministry for just a region; this should be cut down. If a district cannot raise over 70% of total expenditures from local revenues, then such a district should be merged with another one,” Dr. Mutenyo said.
He suggested that the government should embrace source processing by bringing foreign companies to conduct value additions from here to guarantee quality and enhance export.
Dr. Mutenyo further cautioned the central bank against printing more money amid the crisis caused by the World Bank’s suspension, adding that it is possible for the country to contain the economy without much borrowing.
Victoria Ssekitoleko, the Chairperson of the Uganda Agribusiness Alliance, suggested that the government should prioritize critical support for youths involved in innovations and the creative arts sectors.
She maintained that once this group, which is dominated by musicians, is empowered, the government will be able to tap huge taxes from their proceeds.
MP Paul Omara from Otuke district described it as a death trap for the government to prioritize external debt servicing amid the biting economic conditions.
According to MP Omara, the government should prioritize sectors that can spur employment.
While opening the forum, Ramathan Ggoobi, the PS Ministry of Finance, Planning and Economic Development, also secretary to the Treasury, said that Uganda’s economy continues to show remarkable resilience even in the face of significant domestic and external headwinds.
The forum is being held under the theme, “Strengthening Uganda’s Competitiveness to Foster Economic Growth”
President Museveni recently criticized the decision by the World Bank to suspend funding to Uganda for enacting the Anti-Homosexuality Act.
