Uganda: Kasaija Commits to Reducing Inequality Through Inclusive Economic Programs

11 December 2024

The Minister of Finance, Planning, and Economic Development, Matia Kasaija, has emphasised the government's dedication to addressing inequalities while promoting economic growth and opportunities for all Ugandans.

He made these remarks while receiving the 2024/25 financial year budget performance assessment presented by the Equal Opportunities Commission.

Kasaija acknowledged that inequalities continue to hinder socio-economic development, stressing the government's commitment to addressing disparities, particularly among marginalised groups.

"We may not eliminate all inequalities, but we are committed to minimising them as much as possible," Kasaija said.

Kasaija outlined the objectives of Uganda's FY 2025/26 budget, marking the first year of implementing the Fourth National Development Plan (NDPIII).

The overarching goal of the plan is to increase household incomes and employment opportunities to ensure sustainable socio-economic transformation.

Additionally, Kasaija projected that Uganda's economy would expand from the current $53 billion to $500 billion by 2040.

Government to address disparities for people with disabilities and marginalised groups

A significant part of Kasaija's address focused on the inclusion of marginalised groups, especially people with disabilities.

The finance minister noted that the government will expand resources and programs to ensure that all citizens, regardless of physical limitations, have access to social services and opportunities.

Kasaija said, "It is the government's responsibility to ensure that those born with disabilities or who have suffered injuries are given opportunities to live comfortably and as productive members of our society."

He further proposed that a specialised government program would focus on providing education and employment opportunities for disadvantaged groups.

The finance minister also emphasised that fairness does not mean equality for all, but creating opportunities for those most disadvantaged.

"We are trying to ensure that no one lives miserably when we can give them a chance to access opportunities," he added.

Kasaija assured citizens that the government would continue a fair tax regime to redistribute resources.

"Those with more will contribute, and those with less will benefit. We are not saying we will create equality entirely, but we can reduce disparities through government action and inclusive programs," he stated.

Kasaija also appealed to stakeholders to join hands with the government in ensuring that no Ugandan is left behind as the economy expands.

The Equal Opportunities Commission (EOC) raised concerns over budgetary shortfalls, inefficiencies in service delivery, and inadequate support for marginalised regions, calling on the government to address these challenges to achieve inclusive growth.

Safia Nalule Jjuuko, the Chairperson of the EOC, noted that the fiscal challenges are undermining Uganda's development goals.

Nalule revealed that only 5.9 trillion shillings out of the national annual budget of 72 trillion for the 2024/2025 financial year was allocated to local governments, with most of it earmarked for wages and just 1.5 trillion for non-wage activities.

"This limits local governments' ability to effectively deliver services or implement government programs and punches holes in the government's commitment to true decentralisation," she said.

She warned that the situation negatively affects service delivery and government commitments to address critical concerns.

The report also highlighted delays and high costs in implementing government projects, including the Kampala-Jinja Expressway, water supply projects, and school construction funded by the World Bank. Nalule attributed this to inadequate orientation and coordination under the transition from sectoral to program-based budgeting.

"Most Ministries, Departments, and Agencies (MDAs) still carry the old mindset of sector planning, which has resulted in poor coordination and resource allocation," she added.

The unemployment rate has increased from 2.83% to 3.39%, disproportionately affecting the youth, particularly in marginalised regions. Limited access to productive resources like land, financial services, and technology was cited as a barrier.

The report also pointed to persistent gender inequity, high school dropout rates, and gender-based violence, especially in Karamoja and West Nile.

"The poverty rate in these areas remains very high, and there is a need for affirmative action in planning and budgeting for historically marginalised regions," Nalule emphasised.

The EOC called for reinstating the 2 billion shillings initially allocated for community mobilisation and mindset change programs and proposed an increase in its funding to 6 billion shillings.

The commission underscored the need for capacity building to enhance gender and equity compliance across government programs.

"There is a need for capacity building and tracking of commitments made by the government to promote gender equity and inclusive growth," Nalule said.

Among the specific measures recommended was the prioritisation of marginalised regions in development planning, strengthening local governments, and focusing on key economic drivers such as agro-industrialisation, tourism, and technology.

The Commission also urged MDAs to work closely with the Uganda Bureau of Statistics to collect disaggregated data to guide resource allocation effectively.

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