Finance Minister Kasaija Acknowledges Challenge of Reducing Government Expenses
During a budget conference organized by civil society organizations (CSOs) at the Imperial Royal Hotel in Kampala on February 1, Finance Minister Matia Kasaija acknowledged the difficulty of reducing government expenses, emphasizing the need for prudent financial management in the upcoming fiscal year.
Addressing the challenges of managing government spending, Kasaija stated, “Reducing government expenses, that is my headache.” He highlighted the complexities of running a government institution, noting the ongoing struggle to balance tight financial resources within various sectors of the economy.
The projected resource envelope for the financial year 2024/25 is sh52,722.68 billion, compared to sh52,736.79 billion in the financial year 2023/24. CSOs, in their proposal for the next fiscal year, suggested funding cuts in nonproductive sectors, particularly targeting meetings, seminars, and ceremonies.
Julius Mukunda, Executive Director at Civil Society Budget Advocacy Group, recommended scrapping certain budget lines to save sh592 billion without affecting service delivery. He specifically mentioned the ballooning budget for ceremonies and state functions, proposing a return to virtual meetings, citing the successful use of Zoom for events like Labour Day.
In response to CSO proposals, Kasaija shared a previous attempt to limit international travel within the government, recalling resistance from staff who relied on per diems for personal expenses. He mentioned the challenges of balancing salaries with home expenditures and the practical constraints faced by government officials.
The government’s proposed budget for the next fiscal year includes increased allocations for travels abroad, workshops, meetings, seminars, and ceremonies and state functions. Uganda’s debt reached a record sh97.4 trillion in fiscal year 2022/23, as reported by the Auditor General.
