Musasizi Urges Spending Discipline to Link Economic Growth to Job Creation

Uganda’s economic growth, consistently exceeding five percent despite global challenges, needs a strategic shift to benefit ordinary citizens, according to Finance Minister Henry Musasizi.

Speaking at the 12th Parliamentary Committee on Finance, Budget and National Economy Retreat, Musasizi stressed that growth alone is insufficient. The focus must now pivot to generating productive employment, fostering enterprise development, and improving household incomes, aligning with the government’s Tenfold Growth Strategy.

Achieving the ambitious goal of transforming Uganda into a $500 billion economy and eradicating poverty requires enhanced quality in public spending. The minister advocated for a transition from measuring performance by inputs and activities to assessing concrete, measurable results.

Musasizi also highlighted the importance of robust public investment management, particularly in navigating budget pressures from wages, debt servicing, and statutory obligations. He stated that “every public shilling must deliver value and contribute to improved public service delivery.”

While Uganda’s public financial management systems are largely established, challenges persist in implementation, enforcement, and accountability. Key priorities include strengthening internal controls and auditing, clearing government arrears, enhancing liquidity management, finalizing procurement reforms, and improving the management of public assets.

To bolster domestic revenue, the government aims to increase the tax-to-GDP ratio from 13% to 20% within the current term. This will reduce reliance on borrowing and fund national development initiatives. Increased cooperation between the Ministry of Finance and Parliament is also crucial for effective oversight and scrutiny of government policies and expenditures.

Starting this financial year, accounting officers will sign a Budget Discipline and Accountability Charter to enhance controls over supplementary budgets, recruitment, and financial commitments, ensuring responsible management of public resources.

The minister urged for concrete actions and stronger engagement between the Ministry of Finance and Parliament to ensure these commitments are met and Uganda’s development ambitions are realized through discipline, accountability, and effective execution.

This information is based on a report from Nile Post.