The Minister of State for Finance (General Duties), Hon. Henry Musasizi, presenting the national budget and accompanying documents for the next financial year during the House sitting on Thursday 28 March 2024
Henry Musasizi, the Minister designate for Finance
Government’s decision to stop spending on organizing public holiday celebrations is intended to ensure that Uganda achieves allocative efficiency, where funds that would be spent on public holidays, will instead be allocated to activities that grow the economy.
Henry Musasizi, the Minister designate for Finance, made the remarks while speaking to journalists at Parliament after appearing before Parliament’s Appointments Committee, noting that the move is intended to ensure that Uganda grows its economy to US$500Billion by 2040.
Government plans to end financing of activities to commemorate public holidays in Uganda, starting July 2026, with reservations on only religious days.
“The expenditures and allocations in the budget must speak to the aspirations in the economy. So, we shall be moving the money from activities that are less necessary to activities that are more necessary. So, what the Secretary to Treasury (Ramathan Ggoobi) is telling you, we are thinking, if you are spending for example UGX500Million or UGX1Billion on a public holiday, can’t there be another way of achieving the objective of Ugandans celebrating but there is no expenditure? So, I think that is the principle, that is the whole idea and I do fully support that,” Musasizi explained.
The Minister designate further promised that now he is in charge of the docket, in the coming budget, Ugandans will see some items in the budget not getting allocations because the Ministry must make sure that Government delivers the 10-fold growth in time.
Musasizi who before this appointment served as Minister of State for Finance highlighted key areas he will focus on upon his elevation as full Cabinet Minister including; implementation of the new domestic revenue mobilisation strategy and ensure that Uganda’s tax to GDP ratio from now 13% to 20% in the next five years.
He also highlighted the fight of poverty through wealth creation programmes mainly the Parish Development Model, as a tool to bring all households from subsistence economy to the money economy.
The Minister designate also cited improvement in the performance of public projects to reduce delays as well as ensuring that Uganda’s public debt is kept within manageable levels, and also ensure appropriate use of oil revenues.
“On top of this, we shall ensure that our debt is kept within the manageable levels by trying to ensure that, ensuring that we raise the necessary revenues to support our expenditures, and also pursue the idea of mobilising processional financing through our partners like World Bank and IMF and African Development Bank. We shall ensure that we mobilise concessional financing because it is cheaper compared to commercial windows of growth,” he added.
