Written By | Peter Luzinda
Hon. Henry Musasizi, emphasized that the decision reflects a broader shift in fiscal discipline
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Parliament
The Minister Designate for Finance, Hon. Henry Musasizi, has thrown his weight behind the government’s decision to stop financing activities commemorating most public holidays starting July 2026, saying the funds saved will be redirected toward productive sectors to help Uganda achieve its ambitious target of growing the economy to US$500 billion by 2040.
Musasizi made the remarks while addressing journalists at Parliament shortly after appearing before the Appointments Committee on Monday.
“We must achieve allocative efficiency,” Musasizi said. “Now that I am in charge of the Ministry of Finance, funds will be allocated to activities that actually grow the economy. We cannot continue spending on non-productive commemorations while pursuing a tenfold economic expansion.”
The government plans to end state funding for celebrations of most statutory public holidays, with an exception for key religious observances. The policy, which takes effect in the 2026/27 financial year, aims to cut wasteful expenditure and channel resources into priority areas such as agro-industrialization, infrastructure, and wealth creation programmes.
The move was first announced by the Secretary to the Treasury, Dr. Ramathan Ggoobi, at the end of May. It is expected to generate significant savings that will support the country’s Vision 2040 agenda, which targets a US$500 billion economy.
Hon. Musasizi emphasized that the decision reflects a broader shift in fiscal discipline.
“This is about prioritizing what matters for growth,” he added. “Every shilling must contribute to increasing productivity, creating jobs, and expanding our GDP.”
The policy has sparked mixed reactions, with some welcoming the cost-cutting measure amid Uganda’s efforts to manage public debt, while others have expressed concern about the cultural and social importance of national commemorations.
Musasizi is currently undergoing parliamentary vetting following his recent designation as Minister for Finance, Planning and Economic Development.
Torch Media Africa
