Uganda Government to Save Shs24 Billion Annually by Cutting Public Holiday Funding

The Ugandan government is set to implement significant savings by discontinuing financial support for national public holiday celebrations. This move, expected to take effect from the Financial Year 2026/2027, is projected to save the treasury around Shs24 billion each year.

The decision stems from the government’s broader Rationalisation of Government Agencies and Public Expenditure (RAPEX) program. This initiative is designed to curb wasteful spending and enhance the efficiency of public service delivery. The specific holidays affected include Independence Day, International Women’s Day, Labour Day, Martyrs Day, National Heroes Day, and Janani Luwum Day. This directive follows a recent announcement from the Ministry of Finance, Permanent Secretary, Mr. Ramathan Ggoobi.

The RAPEX program has already reported substantial savings, exceeding Shs773 billion according to a past parliamentary report, through measures like reducing wage and non-wage expenditures and streamlining other operational costs. The announcement was made during the launch of the National Budget Month, an event aimed at promoting transparency and citizen engagement in the budgeting process.

While Uganda has seen improvements in international budget transparency rankings, with scores rising above the global average, public participation in budgeting remains a concern. The government acknowledged a decline in citizen engagement, though it remains slightly above the global norm, and expressed optimism for future improvements.

The approved budget for FY2026/2027 is Shs84.3 trillion, with a focus on economic monetization through agriculture, industrialization, social services, digital transformation, and market access. Civil society organizations have endorsed increased funding for agro-industrialization but have also called for greater investment in local governments and climate resilience. Concerns persist regarding the impact of rising public debt and borrowing costs on public expenditure and private sector growth, with the government emphasizing greater domestic revenue mobilization to lessen reliance on borrowing.

Source: https://www.monitor.co.ug/uganda/news/national/govt-to-save-shs24b-in-holiday-spending-cuts-5481838