PSST Breaks Down How Government Utilizes Tax

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Ramathan Ggoobi, the Permanent Secretary and Secretary to the Treasury, Ministry of Finance Planning and Economic Development

Several Ugandans have inquired as to where and how the government spends the taxes they pay, with the majority criticizing the government of utilizing taxes to fund politicians’ lifestyles and failing to prioritize their needs.

Ramathan Ggoobi, the Permanent Secretary and Secretary to the Treasury, Ministry of Finance Planning and Economic Development (MoFPED), during an interview on September 5, 2024, explained how taxes collected by the government have been used for citizens’ benefit.

“Firstly, there are those unobservable things like security funding, which is paramount to any country. We spend a lot on security because of the region that our country is located in. Without stable security, there will be no development of the country’s economy to benefit all citizens,” he noted.

Ggoobi added that there are observable things that the government has worked on, which include transporting infrastructure, health sector development, electricity transmission, communication transformation, and public education investment, to mention but a few.

“The country’s transport system has improved over the years, and all the country’s means of transport have improved. We now have 6300 km of tarmacked roads compared to the 3200 km in 2010. The government has constructed more hospitals, with at least every sub-county having a health centre,” he added.

“The country’s communication has transformed, with digital interfaces improving from 0.2% in 2008 to 59% in 2023. The government has intensified urban-rural electrification. All these and more have improved greatly, which shows the taxes are being put to the right use,” Ggoobi added.

He also admitted to some corruption tendencies by some individuals in the government, which has made citizens question the relevancy of them paying taxes.

“The government is committed to wiping out these leakages and corrupt officials so that citizens benefit from their taxes and the country develops too,” he said.

He called on citizens to comply with their tax payments to support the development agenda of the government and an improved economy, which will benefit all citizens.