Uganda: Luzzi Proposes 70% Development Budget Rule, Shs 200,000 Minimum Wage in Economic Reform Plan

10 November 2025

Independent Kampala Central parliamentary aspirant Abraham Luzzi has unveiled a major economic reform agenda centered on restructuring national spending, increasing domestic revenue and raising worker welfare, including a statutory minimum wage of Shs 200,000.

Under the proposal, 70 percent of Uganda's national budget would be ring-fenced exclusively for development programs such as infrastructure, health facilities, skilling and job creation. Luzzi says public spending must urgently shift away from consumption-driven budgeting.

The manifesto criticises "the persistent bias toward Recurrent expenditure during budget formulation and appropriation," warning that excessive allowances and wages for government officials are crowding out investment in services that benefit Ugandans.

"The Development expenditure shall always be greater [than] 70% while Recurrent expenditure shall be not exceeding 30% including Debt repayments," the manifesto states.

Keep up with the latest headlines on WhatsApp | LinkedIn

Luzzi argues that enforcing what he calls the "Rule of Equilibrium in Government Spending" will "prevent debt spirals and ensure that every budget funds visible, productive outcomes," reducing borrowing and restoring fiscal discipline.

The candidate pledges to raise Uganda's tax-to-GDP ratio from 13 percent to 20 percent, noting that improved revenue performance is essential for a sustainable development-focused budget.

According to the manifesto, the shift will involve ending "unrealistic tax exceptions to able tax paying local and foreign companies" and formalizing tax collection in the informal sector.

Luzzi says the goal is to support "public income generation, lower or even eliminate the bad consistent borrowing to save our budget imbalance."

Analysts have long warned that Uganda's narrow tax base limits investment in key sectors despite rapid population growth.

Luzzi positions his manifesto as a worker-centered overhaul, proposing a national minimum wage of Shs 200,000 per month to protect employees from exploitation.

The policy would apply across the private and public sectors including foreign-owned firms.

The manifesto argues that the wage floor "will protect workers from exploitation by both local and foreign companies or government."

Alongside wage protections, Luzzi proposes major salary enhancements for essential public servants, saying professional motivation must be recognised where service demands are higher.

As an example, the document states: "A medical doctor shall earn minimum salary of Shs 18 million after all they are not many," while teachers would also receive significant increases tied to qualification and risk.

Luzzi says such measures would reduce corruption linked to "economic desperation" and improve service delivery.

The aspirant further proposes that all workers whether in government or the private sector must be employed under formal contracts to prevent "arbitrary dismissal" and protect their rights.

Labour groups have repeatedly raised concerns about widespread casualisation and lack of workplace protections, especially in the informal economy that employs most Ugandans.

Private-Sector Financing for Infrastructure

To reduce reliance on loans for large-scale infrastructure, the manifesto introduces increased use of Build-Operate-Transfer (BOT) arrangements.

Under the model, private investors would finance and operate new assets such as roads and energy projects recovering their costs through user fees before transferring ownership back to the state. Luzzi argues this strategy would preserve fiscal space while enabling development.

"Economy Must Work for Citizens"

Positioning his proposals as a direct correction to structural inequality, Luzzi says his economic reforms aim to ensure that national prosperity reaches ordinary Ugandans.

"Uganda's economy must work for its citizens not just for civil servants, politicians, the rich or the elite few," the manifesto asserts.

AllAfrica publishes around 600 reports a day from more than 90 news organizations and over 500 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.